
As the world slowly recovers from the COVID-19 pandemic, the retail landscape is undergoing a significant transformation. While e-commerce experienced a surge in popularity during the lockdowns, consumers are now returning to brick-and-mortar stores for everyday essentials and general purchases. However, online shopping remains the preferred choice for bigger-ticket and niche items.
According to recent studies, consumers are flocking back to physical stores for convenience, social interaction, and the tactile experience of shopping. A report by the National Retail Federation found that 62% of consumers prefer shopping in-store for everyday items, citing the ability to touch and try products as a major draw.
In South Africa, this trend is also evident. A survey found that 63% of South Africans prefer to make purchases at a mall, and 76% visit a mall at least once a week. However, economic uncertainty is also a factor, with 87% of South African consumers describing their current economic situation as “stretched” and 61% saying they are cutting back on spending.
On the other hand, online shopping continues to thrive for larger purchases and specialty items. Consumers are leveraging the convenience and accessibility of e-commerce for items like electronics, furniture, and high-end fashion. A study by McKinsey found that online sales for these categories have increased by 20-30% since the pandemic. In South Africa, online sales have more than doubled since 2018, growing from ZAR 14 billion to ZAR 30 billion.
One sector experiencing a significant boost is the hardware industry, particularly in outdoor and home improvement categories. As people continue to invest in their homes and outdoor spaces, hardware stores are seeing a surge in sales. According to the National Association of Home Builders, sales of outdoor furniture and grills have increased by 15% since 2020.
The shift in consumer behavior presents both opportunities and challenges for retailers. To thrive in this new landscape, businesses must adapt and innovate, offering seamless omnichannel experiences that cater to changing consumer preferences. By embracing this new reality, retailers can capitalize on the resurgence of brick-and-mortar shopping while maintaining a strong online presence.