Mindshare UK’s Reality Check 2022 shines a spotlight on a faltering high street as Amazon defines retail expectations

Whether online shopping or in-store browsing, the pandemic has altered routines in ways that will continue well into next year and beyond. Mindshare UK’s new Reality Check 2022 report has highlighted lacking consumer confidence in high street retailers as online continues to soar with eight in ten people (79%) now shopping differently compared to pre-pandemic habits. 

Physical stores are becoming less important, but there’s still hope 

Our research has shown that a majority of young consumers (52% in 16-34s) believe that physical stores are becoming less important. While concerns around Covid have been a factor, respondents told us that their overall “joy” of shopping has been in steady decline since 2019 with 10% fewer people stating they love shopping and do it for fun. 

There is, however, some silver linings for the high street with 69% of people saying that “even with the growth of online shopping, there is still an important role for stores”. Almost half of consumers (46%) also agree that there are certain shops that they want to support, and feel a duty to spend in them. Meanwhile a majority (53%) agree that while online shopping may be convenient, nothing beats the experience of shopping in-store. 

Online shopping outlines expectations  

As more and more consumers continue to migrate to ecommerce stores, Amazon is proving itself as an overwhelming dominant force for setting customer expectations. 

With the Covid pandemic further embedding our love of online shopping, easy accessibility, and low prices, matched with next day delivery from the comfort of our homes, has meant that the likes of Amazon are setting the expectations for what we as consumers now look for from other retailers – with almost half (45%) in agreement that Amazon is now defining their retail expectations. A further also 45% find it hard to resist the low prices offered by some fast turnaround retailers. 

The research also points to a significant gap between younger consumers experience of shopping and the attitudes of those aged 55 plus. Almost half (48%) of people aged 16-34 said that “shopping on Amazon is so easy I sometimes don’t realise how much I am spending, or how often I am using it” – in sharp contrast to the just 18% of over 55s.   

Our research found that 1 in 3 purchases are now being made online, compared to one in four in 2019 and it's now far easier for people to imagine an online-only future with the range of products and services we are now comfortable buying online expanding greatly over recent years.   

Consumers are using these online experiences and it’s shaping the way they not only view shopping, but of price and quality too. We have found that consumers are more conscious of spending, particularly within the younger generations who are feeling far more insecure than the older parts of society. 

Functional retail vs experience 

Our study also suggests an experiential divide is opening up between fast and functional shopping and occasions where consumers want a high-quality experience in a physical store and this will be dictated by consumers’ individual values and perceptions of what a retail brand can offer.  

Mindshare’s research found that 45% of 16-34s agreed “after getting used to online shopping, I find the high street quite stressful” compared to 37% of all age groups and 26% of over 55s. Meanwhile 44% overall agreed ‘shopping in-store just seems a lot more effort than shopping online now’ rising to 49% of 16-34s but falling to 38% of those aged 55 plus. 

However, it seems that the overall shopping experience has been dampened by the pandemic, with the idea of a unique offline vs online proposition feeling much less relevant these days. While in 2019 three quarters (72%) of shoppers expected stores to provide something different from what they could get online, in 2021 this is true of only half (55%). 

Frugal shoppers are a growing trend  

For many, the events of the past few years have meant a reassessment in our spending habits both online and offline. Our study points to a newfound joy of saving, coupled with a far savvier approach to shopping as consumers become more frugal with their buying habits. 

Our research found that three out of five people now would choose quality over quantity, with over half (53%) coming to the realisation that they no longer need to buy so much stuff due to their outlook changing since the pandemic. 

With 27% of respondents revealing that they’re now consciously trying to spend less, and also a quarter (24%) only buying items when they need replacing, consumers are now seemingly reducing the amount they are purchasing - a trend that is likely to continue as environmental, wastage and monetary concerns grow in an increasingly uncertain world exacerbated by Covid. 

You can read Mindshare’s Reality Check 2022 report in full here.