Consumers around the country have been sheltering in place for months and taking most of their shopping online—and the trend isn’t going anywhere. In fact, more consumers have shopped online since physical stores started re-opening than did when stores were still closed. The trend shows that online shopping growth isn’t going away and that brands need to re-assess their digital offerings to create the best experience possible.
More Consumers Buy Online As Stores Start To Reopen
A new survey from PYMNTS found that nearly 36% of U.S. consumers are now buying retail goods online, compared to 29% doing so in mid-April when most brick-and-mortar stores were closed. The same is true for consumers ordering from restaurants online, even though many restaurants have started to open with more widespread dining options. The survey found 21% of consumers are now ordering online from restaurants, up from 13% in mid-April.
And those numbers are likely to stay steady or increase before they start to go down. The same survey found that the average consumer doesn’t expect the pandemic to end until February 2021, meaning that retailers have at least eight months of increased online orders.
To meet the demand, companies need to re-evaluate their digital offerings and embark or continue on a digital transformation. With more consumers shopping online, the difference between brands becomes more evident. Companies with clunky interfaces or unintuitive online options will pale in comparison to more digitally savvy brands.
Companies Rushing To Meet Digital Demand
Target, which has long been a leader in digital transformation and curbside pickup, is expanding its curbside grocery business to meet customer demand after digital sales increased 141% in the first quarter of 2020. Target’s stock price is standing strong. Stores across the country will have more designated curbside pickup spots as well as fresh and frozen space inside stores to accommodate online grocery orders. Target will also soon start testing “sort centers”, which will be placed in markets that have a high density of packages and eliminate the need to keep those packages at individual stores. The goal is to continue to build a high-quality digital experience while cutting costs and delivering orders faster to in-demand markets.
Lowe’s has also seen tremendous online growth, both for deliveries and curbside pickup. Lowe’s stock price is now at 2020 high. Before COVID hit, Lowe’s underwent a major website overhaul to grow its e-commerce from paltry 3% annual growth. The new website makes it easier for customers to find products they are looking for and also research products before potentially buying in store. Lowe’s digital transformation took the company down to the bones and then rebuilt with a new emphasis on digital. The store created a seamless omnichannel experience by investing in supply chain, IT and leadership development. Because of Lowe’s well-timed digital overhaul, the company was able to launch curbside pickup in three days during the pandemic. It will continue to grow its e-commerce and digital abilities.
Wendy’s has built out its website and app to create a more robust ordering system that can be updated in real time. Wendy’s stock price has also climbed back since a dip in March. With uncertain supply chains, Wendy’s can easily remove certain menu items that aren’t available so that customers can’t place an order that can’t be fulfilled. The company is offering more delivery services and highlighting its digital offerings in marketing to alert customers of contactless ordering and payments for a more seamless digital experience.
Just because brick-and-mortar stores and restaurants are starting to re-open doesn’t mean online ordering is declining. In fact, the opposite is true. Consumer trends show that e-commerce will continue to grow, and companies need to be continuing their digital transformations to provide great service, both online and in store.