As the retail landscape continues to evolve, a noteworthy trend in the world of commerce is the resurgence of brick-and-mortar shopping, now blended with sophisticated digital features to enhance consumer experiences. Data and insights from recent market studies, particularly from PYMNTS, illustrate how in-store shopping is not merely recovering but is undergoing a renaissance, particularly as it approaches 2025.
The pandemic era had previously led consumers to rely heavily on e-commerce, making physical shopping seem a diminishing practice. However, shifting consumer behaviours indicate a robust comeback, with evidence suggesting that more than 43% of shoppers in the United States engaged in in-store purchasing recently, while approximately 19% utilised digital features within retail environments, such as accessing product information and pricing via mobile devices.
According to a report by Visa, 77% of spending during the holiday season originated in physical retail locations. In comparison to previous years, retail spending has seen significant growth, with Visa estimating a 4.1% increase in in-store expenditure during the latest holiday shopping period, a marked improvement from the 1.6% rise recorded between 2023 and 2022. This uptick underscores a consumer preference for the tactile shopping experience, despite the ongoing integration of digital tools and payment options.
Speaking to PYMNTS, Bellamy Grindl, the founder of Retailytics, highlighted the need for an omnichannel approach, stating, “Physical retail is making a comeback as younger generations crave experiences that go beyond the product itself.” He stressed that to thrive in this environment, brands must create seamless connections between online and in-store interactions, leveraging technology such as interactive displays and mobile checkout systems to enhance the shopping journey.
As retailers adapt to these changing demands, point-of-sale (POS) technologies are also undergoing transformations. Customers are increasingly favouring more portable and flexible POS systems—moving away from traditional cash registers towards mobile devices and tablets. PYMNTS intelligence, in collaboration with Discover® Global Network, noted that SoftPOS technology, which accommodates contactless payments via portable devices, is being embraced by nearly a quarter of merchants who anticipate replacing traditional systems in the near future.
Data from Visa and Mastercard further corroborates this trend, revealing that 54% of in-person transactions in the US are now contactless, a notable increase of 13 percentage points year-on-year. Similarly, Mastercard reported that contactless payments constitute over 70% of global volumes for in-person transactions.
Fostering this evolution in POS systems, Fiserv's Clover service has recently introduced a new suite of tools aimed at small businesses. These enhancements include portable hardware options such as Clover Compact and Flex Pocket, designed to facilitate mobile commerce interactions. Fiserv's latest earnings report indicated a 28% growth in Clover sales, emphasising the surging demand for innovative payment solutions.
Additionally, GoDaddy has entered the market with the Smart Terminal Flex, a compact POS tool for small businesses that conveniently fits inside an employee's pocket, further illustrating the drive towards making transactions more user-friendly and accessible.
As the retail sector progresses into 2025, the fusion of digital innovations with traditional shopping continues to reshape how consumers engage with brands, offering diverse payment solutions and an enriched shopping experience. This trend reveals a dynamic shift, marking a significant evolution in retail practices that businesses must navigate in the coming years.
Source: Noah Wire Services