Member Article

Over half of Brits believe shopping online is cheaper than physical retail, CACI finds

CACI, the consumer and location intelligence specialist, has revealed that over half of Brits believe shopping online is cheaper than physical retail, a sentiment that is set to impact shopping behaviours this Christmas.

Through a survey, CACI discovered that whilst 56% of respondents perceived online as cheaper, 36% disclosed they would shop more in-store this Christmas. The role of the store and the magic of the Christmas high street in connecting brands with customers should not be under-estimated; Brits love a Christmas shop. A potential consequence of the rising cost of living could be strong footfall in November and December, but lower basket size than might be expected during the festive period. The value of physical retail has been previously confirmed by CACI’s ‘online halo’ research, showing that many brands experience a meaningful uplift in online sales within a store’s catchment – for example CACI has seen Zara’s online market share is 43% higher around its city centre stores.

CACI also found that more than 50% plan to visit the same stores as the previous year, highlighting the value of developing customer loyalty, and the need to convert this into spend with exclusive in-store deals, events, and flash sales. In addition, CACI asked those surveyed whether they are starting Christmas shopping earlier this year. Results showed that 36% have already begun and are looking to spread the burden over multiple pay checks, particularly lower affluence Acorn groups, with 42% of Financially Stretched shoppers having started early.

Hannah Smith, Managing Consultant at CACI, said: “Whether it is a misconception or not, the general sentiment is that online shopping is cheaper than physical retail. Among the lasting impacts of Covid, we’ve seen greater channel fluidity for shoppers, with the boundaries between online and offline increasingly blurred. This might be why this perception exists – a new audience has taken to online shopping, where sales are a click away and take very little research or hunting.

“But the magic of the shopping in store remains undimmed, especially as we approach Christmas and the appetite for experience and gift-giving it brings. Whilst we may anticipate more transactions online, 58% enjoy the experience of the in-person shop, even if they go on to transact online. So there are two key lessons: first, do not ignore the value of your online halo; and second, building customer loyalty now will absolutely benefit retailers in the long-run.”

CACI also found that 25–34-year-olds in urban locations are in particular placing a key focus on supporting local independents this Christmas, staying true to their values of conscious consumerism despite the cost-of-living crisis. The most affluent and older generations remain relatively unmoved on sustainability, with 50% of Comfortable Communities and 46% of Affluent Achievers choosing value over ethics.

This research follows data published by CACI, revealing the UK’s 25 highest revenue leisure regions and their staffing potential, as part of analysis into the staffing crisis within hospitality. CACI identified the areas with the biggest spend and volume of potential hospitality staff. Locations high in both include Birmingham and Glasgow, with London and Brighton having comparatively lower staff availability.

This was posted in Bdaily's Members' News section by Nick Thornton .