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Consumers – Where did they shop in 2024?
Learn where consumers chose to spend their money and time shopping in 2024, and how that translates to retail space demand.
Consumer shopping trends are always on the radar for commercial investors in the retail sector, so 2024 was is no exception.
Online shopping vs brick & mortar
Online shopping may seem like it has taken over the average consumer’s life, but that does not mean brick-and-mortar stores are going extinct. In fact, in-person shopping is still the go-to shopping experience for most American shoppers. According to data from Capital One, American consumers spent $7.051 trillion in retail stores compared to just $1.243 trillion online in 2023. This means there is still a strong demand for physical space, and it likely will be for a while.
Strength of in-person shopping
In Q3 2024, just 15.6% of the $1.852 trillion in consumer retail spending was e-commerce. Customers overall seem to prefer the in-person experience over online shopping, as 45% of American consumers prefer to shop in-store, compared to 29% of consumers who prefer to shop solely online. For those who prefer online shopping, convenience and saving time are the most common reasons cited.
What these customers are buying affects where they shop, but brick-and-mortar is still king for most purchases. For example, most shoppers buy groceries in-store, while just 19% buy groceries mainly online. Meanwhile, while a majority still prefer to buy their electronics in-store, 37% of these purchases are made online.
Generational shopping trends
Capital One’s study also found a generational gap in online versus in-person shopping habits, but even among younger generations, there is still a preference for physical shopping. Younger and more tech-savvy generations like Gen Z tend to lean on online shopping more than older generations, but most lean toward a hybrid. Sixty percent of those born between 1946 and 1964 (Baby Boomers) shop primarily in stores, compared to just 38% of Millennial shoppers, the generation most likely to shop primarily online. Meanwhile, consumers born between 1995 and 2003 (Generation Z) are the most likely to shop hybrid, an equal mix of in-store and online.
Summary
Overall, brick-and-mortar stores are here to stay, and the online marketspace is not likely to push them out anytime soon. People enjoy the in-person experience of not only going and experiencing stores, but they like to see the product in person. There are of course the factors of convenience, sometimes cost, and sometimes even speed that e-commerce provides, so consumers continuously weigh their options on a per-case scenario.
