Mid-year retail snapshot: Understanding consumers’ endless pursuit for the best deal.

Halfway through 2024, the retail landscape is in the midst of a major transformation. Consumer behaviors are shifting dramatically, influenced by economic pressures, changing preferences, and the ever-growing dominance of mobile.

This mid-year report, based on a survey of 1,600 US and UK consumers and anonymized data from the Quantum Metric platform, reveals the most crucial trends retailers need to understand to thrive in this new era.

Value reigns supreme – but shoppers are willing to pay.

Despite inflation pricing, consumers haven't stopped spending—they've just become more discerning. Quantum Metric data reveals a decrease in overall conversion rates, yet average weekly cart values have climbed nearly 40% from March to June, showing customer resilience despite potentially higher prices. This also symbolizes a major change in cart values when compared to 2022 and 2023.

Even if the price is high, consumers are more willing to stretch their budgets:

• Fewer than 20% of consumers intend to reduce spending this year.
• Only 25% have cut back on high-value items, reinforcing their willingness to invest in products that meet their needs.

But what does value look like today? We’ve seen stores like Target dropping prices to meet new consumer expectations, but our data shows 52% of consumers actually prefer retailers to offer frequent discounts/sales on all items versus low prices.

The takeaway? Retailers need to double down on communicating the value, offering personalized deals and promotions to boost purchases. Low prices might not be the motivation retailers think it is and, in fact, using loyalty powered promotions could be the better option for driving acquisition and engagement.

Seasonal shopping? It's so last year.

The traditional retail calendar is becoming irrelevant. Sales events like Prime Day are reshaping expectations and driving demand throughout the year.

• The expected summer slump doesn’t exist in 2024 with Quantum Metric data revealing a mere 4% drop in monthly digital traffic rates between January and June 2024, compared to 2023's 20% decline.
• Monthly conversion rates also rebounded, increasing by 25% from May to June. In 2023, conversion rates actually saw a 4% decline between May and June.

So what could this mean for Black Friday/Cyber Monday? Retailers need to adjust forecast accordingly and be cautious when predicting sales around the “usual” holiday boom. We could see a decline in sales for the biggest shopping days of the year as consumers stop depending solely on Cyber 5.

• Shoppers are no longer waiting for Black Friday, with only 24% planning to hold off on their purchases compared to 34% in 2022.
• In fact, 32% of US consumers and 50% in the UK are already making holiday purchases.

It’s no longer enough to have a predictable holiday sale. Retailers must embrace a year-round promotional strategy, offering compelling deals and personalized experiences to capture this eager audience. As Bass Pro Shop knows, even an out-of-stock scenario can provide an opportunity to drive new sales and boost conversion rates by 8% (or more).

Mobile – Your biggest asset (if you do it right).

The mobile shopping revolution is in full swing.

• 80% of consumers use mobile devices in their purchasing journey for everyday items.
• 33% are making more of their everyday purchases on mobile devices.

However, frustration with mobile errors is a significant barrier, with 43% citing them as a reason for not buying more on mobile. This can be a big opportunity for retailers and the shift to summer shopping could help tip the scales.

• In 2024,mobile drives more than twice as much traffic as desktop, but desktop drives more purchases.
• Quantum Metric customers investing in their mobile experience are seeing the gap between desktop and mobile purchases close. For the first time, June saw mobile bring in 50% of purchases for the month.

This could all mean July could be the first time mobile exceeds desktop in purchases. It comes down to the right mix of investments and environmental factors - improved mobile performance that builds trust with consumers and a rise in promotions while shoppers are already on vacation, at the beach or other places far from a desktop.

To drive more mobile sales, retailers need to invest in the right visibility and analytics to improve performance, build trust and meet changing consumer expectations.

Closing the sale: From cart to checkout.

Cart abandonment remains a major challenge, with average abandoned cart values exceeding purchased cart values by over 3X. This suggests carts are often used as wish lists, underscoring the importance of checkout optimization to maximize revenue.

• At least 40% of consumers are actively researching and filling carts daily.
• But, 35% are making an effort to make less spontaneous purchases.
• Quantum Metric customers who prioritize a seamless cross-device digital experience have seen up to a 12% reduction in monthly cart abandonment during the early summer months (April-June), almost the inverse of what was seen in 2023.

With inflation likely to taper, we are seeing consumers with more purchasing confidence. The retailers who have been providing a more personalized and smooth experience are making it easy to hit the buy button.

This demonstrates the direct impact of optimization on the bottom line. Retailers must invest in streamlining checkout processes, offering guest checkout options, and minimizing friction points to convert those wish lists into sales.

Adapting to the new retail reality.

Retailers who want to succeed in 2024 and beyond must:

• Deliver value-driven offerings that justify their prices.
• Embrace year-round promotions to capitalize on shifting shopping patterns.
• Prioritize mobile optimization to capture the growing mobile audience.
• Streamline cross-device checkout processes to reduce cart abandonment and boost conversions.

Quantum Metric provides the insights and tools needed to understand and adapt to these evolving consumer behaviors. By optimizing your digital experiences, you can not only meet but exceed your customers' expectations, driving sales and loyalty in this new retail era.

Discover how Quantum Metric is helping top retailers thrive in the new retail landscape.