Digital-first economy redefines retail and consumer behavior
When it’s said and done there was only one story that mattered in the retail universe this year and it was the rise of the digital-first economy. The numbers speak for themselves. PYMNTS research on consumer shopping habits showed that 24 percent of all consumers say they have taken at least one of their routine shopping activities online and do not plan to revert to shopping in stores for this activity, even after the pandemic is over. More consumers are going online to shop and pay as the pandemic progresses. The latest research shows 40 percent of surveyed shoppers report doing fewer activities in stores and more activities online — this is up from the 12 percent who reported doing so on March 6.
It was the catalyst for most every business dynamic in the category. It produced several payment trends, which can be found in the How We Shop report. From a strictly retail perspective, however, the digital shift produced three major trends, presented here with quotes from executives that appeared on our pages: direct-to-consumer sales, the continued decline of malls and department stores and the accelerated growth of Amazon, Target and Walmart.
D2C Explodes
eCommerce spiked because consumers demanded it and drove it. Direct-to-consumer (D2C) brands drove into the pandemic and adapted to it to catch the digital shift. One was driven by demand; the other was driven by necessity. These are the brands that have either created new product categories, new business models or pivots on their previous business models. These are companies like Adore Me (lingerie), Green Goo (personal care), Shift (used cars) and Misfits Market (produce).
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