Click-and-Mortar: The Trend Shaping Tomorrow’s Shopping Habits

• Click-and-Mortar™ shopping has increased by 38% since 2020, with almost 40% of worldwide consumers combining digital and physical retail experiences.

• Younger generations, notably Generation Z and millennials, are driving this trend, anticipating a seamless integration of online and in-store conveniences.

• Retailers must react to changing consumer demands by providing flexible payment alternatives and improving their physical shopfronts with digital capabilities.

Click-and-Mortar™, a hybrid purchasing trend that combines online and in-store shopping, is gaining popularity. This unique technique represents a movement in consumer preferences towards the seamless integration of digital and physical retail experiences, which improves the whole shopping experience.

Understanding Online and Physical Shopping

PYMNTS Intelligence’s report, “2024 Global Digital Shopping Index: The Rise of the Click-and-Mortar™ Shopper and What It Means for Merchants,” found a 38% increase in Click-and-Mortar behaviour in Brazil, the United Kingdom, and the United States since 2020. This development implies a fundamental shift in how customers engage with retail environments, with significant ramifications for businesses.

A Shift in Consumer Behaviour

Modern buying habits are rapidly developing. Nearly 40% of the global consumer population now identify as Click-and-Mortar shoppers, indicating a substantial shift away from traditional purchasing practices. Interestingly, this tendency is most prominent in Brazil, where 48% of buyers use this hybrid approach, compared to 31% in the United States and 27% in the UK.

Younger generations, particularly Generation Z and millennials, are leading this movement. For these customers, the ability to check inventories online or quickly discover products in-store has become a necessary expectation. According to the data, two-thirds of shoppers in the examined regions now use digital elements, demonstrating that technology has become an integral part of the shopping experience.

While internet buying increased dramatically during the pandemic, reliance on online-only outlets has begun to decline. In 2024, only 29% of consumers reported using only online channels, indicating an increasing demand for a balanced purchasing strategy that mixes the immediacy of in-store purchases with the conveniences of digital platforms.

The Vital Role of Physical Stores

Despite the rise of digital purchasing, physical shopfronts remain important in the retail scene. Approximately 71% of consumers believe that physical stores are essential to their shopping experiences. Today’s shoppers, however, are looking for a combination of in-store and internet advantages.

A growing proportion of shoppers, almost one-third, now enter physical stores with some type of digital aid in mind. Online inventory checks and mobile payment alternatives are becoming increasingly popular, indicating that businesses that successfully incorporate digital capabilities into their physical spaces will likely experience higher levels of consumer satisfaction and loyalty.

For instance, countries such as the United Arab Emirates showcase the potential for hybrid shopping experiences, where Click-and-Mortar shoppers report satisfaction levels on par with those who shop exclusively online. This highlights the enormous opportunity for retailers to innovate and improve the in-store experience by leveraging digital tools.

Adapting to New Retail Realities

To thrive in this changing retail landscape, firms must completely embrace the Click-and-Mortar shopping paradigm. A notable result from the paper is that 75% of consumers in the analysed markets express a desire to utilise their preferred payment methods, emphasising the necessity of payment flexibility.

Furthermore, retailers today provide an average of 21-28 digital capabilities, but customers typically use only 11-18 of these alternatives. This disparity indicates that retailers have significant space for improvement in how they deliver digital conveniences, resulting in a more engaging shopping experience.

As younger generations develop spending power, the Click-and-Mortar shopping trend is expected to expand further. Retailers must adapt their strategies to balance instant gratification with robust digital support to fulfil today’s evolving consumer expectations.

Conclusion

In an era where online and in-store shopping are becoming increasingly linked, merchants must embrace the Click-and-Mortar approach to remain competitive. Businesses may negotiate this changing landscape and meet the needs of today’s shoppers by incorporating digital features into physical shopfronts and improving customer experiences. The future of retail has arrived, and it is time to embrace the hybrid shopping experience that Click-and-Mortar offers.