The Evolving Landscape of Irish Shopping Behaviour
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July saw the release of the Penneys Pulse of the Nation Index: Volume 2. The report shows us a nation of consumers who, primarily through necessity, in 2020 adapted and embraced eCommerce yet still hold a desire for the physical shopping experience. But not without some improvements.
The Pandemic's Impact on Irish Retail
As the pandemic forced people to stay home, eCommerce saw an unprecedented surge practically overnight. In 2019, only 7% of clothing, footwear, and textile sales from Irish registered companies were online purchases. However, as the first lockdown hit in April 2020, this figure skyrocketed to 66% for the category. While the peak has since subsided, online shopping has continued to grow, reflecting a fundamental transformation in Irish shopping behaviour.
The Surge of eCommerce and its Evolution
Since the peak of the pandemic-driven surge, online sales of clothing, footwear, and textiles have stabilized at 8% of overall turnover as of February this year. This marks a considerable shift from the mere 3.3% of all retail sales attributed to online shopping from Irish registered companies in January 2020. Although the figure spiked at 10.9% in January 2021, more recent figures from January 2023 indicate that it settled at 5.4%, almost double that of three years ago. This data underlines the evolving shopping patterns of Irish consumers, with a notable preference for online purchases.
The Role of Businesses in Embracing Digital Channels
The transformation of Irish shopping behaviour goes beyond consumers; businesses have also adapted to the changing landscape. An increasing number of companies have established an online presence, recognising the importance of digital channels to engage directly with customers and facilitate sales. As a result, digital commerce has become an indispensable aspect of business operations, enabling companies to cater to a wider audience and meet evolving consumer demands.
The Resurgence of Local Communities
The pandemic-induced lockdowns made people re-evaluate the significance of local shops and amenities as vital social lifelines. As restrictions eased, individuals showed overwhelming support for their beloved businesses by returning to make purchases. Iconic scenes of long queues forming in front of stores like Penneys Mary Street symbolised the deep connection between consumers and their preferred retailers. Moreover, the rise of remote work has led to increased foot traffic in town centres, with new enterprises like coffee shops and bakeries flourishing in response to the shifting work patterns.
Ethics and Sustainability as Driving Factors
Consumer expectations have evolved beyond convenience and price, placing a higher emphasis on company values, ethics, and sustainable practices. A study by advisory firm RSM in 2019 revealed that 88% of Irish consumers consider ethics when making purchasing decisions. This growing trend underscores the importance of aligning business practices with consumers' values, and it presents an opportunity for companies to differentiate themselves in the market.
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Embracing the Hybrid Experience
While the surge in online shopping during the pandemic showed the potential of digital commerce, bricks-and-mortar retail remains an indispensable part of the Irish consumer experience. As we transition into an age of experiential shopping, the significance of physical stores located in vibrant cities and towns cannot be understated. Despite the growth of eCommerce, consumers in Ireland express a genuine desire to continue supporting local businesses and cherishing the communal experience of shopping in-person.
Embracing the Future of Retail
The outbreak of the pandemic undoubtedly reshaped the Irish retail landscape, pushing online shopping to the forefront of consumer behaviour. However, as the dust settles, a clear picture emerges—the future of Irish retail lies in embracing a hybrid shopping experience that leverages the benefits of both digital and physical channels. By fostering a strong online presence while maintaining thriving bricks-and-mortar establishments, businesses can cater to a diverse range of consumers and create a more inclusive, sustainable, and thriving retail ecosystem for the years to come. People want thriving businesses in their town, but they also want a pleasant environment that is brought to life with people and experiences. 54% of Irish consumers want to see an improvement in amenities such as playgrounds, benches and libraries. For 37%, an increase in cafés and restaurants will bring that improvement. It is clear that people want their local communities and towns to be lively, safe and flourishing, and clear that retail plays a large part within this.
Amárach Research - July 28 2023
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