Despite the persistent surge of eCommerce, recent data indicates that physical retail locations continue to play a vital role in consumer purchasing habits, attracting shoppers for distinct reasons and product types that differ significantly from online patterns.
A new report from PYMNTS Intelligence highlights the enduring appeal of brick-and-mortar stores even as consumers spend considerably less per visit compared to online transactions.
The findings, based on a survey of 2,628 consumers conducted in December, shed light on how shopping channel profoundly influences not only what people buy but also how they prefer to pay.
Titled “How People Pay: Retail Shoppers’ Behaviors Vary by Shopping Channel,” the findings reveal that while online shopping is firmly established, physical stores are far from obsolete. In the 30 days prior to the survey, 2.7 times as many consumers purchased retail products in stores as did so online.
However, shoppers appear more selective when shopping in brick-and-mortar locations, resulting in significantly smaller average basket sizes. The value of the average brick-and-mortar purchase amounts to $78.50, markedly less than the $131.66 average for eCommerce transactions. This trend of higher online spending holds true across all retail categories studied.
Key data points from the report reveal these differing patterns:
- Traffic vs. Value: In the 30 days leading up to the survey, 2.7 times as many consumers made retail purchases in physical stores compared to online. However, the average online retail purchase ($131.66) was 68% higher than the average in-store purchase ($78.50).
- Key In-Store Draws: While health and beauty products were the most popular category purchased in-store (by 37% of consumers who made an in-store purchase in the last month), other categories also draw shoppers. Clothing and accessories were purchased by 24% of brick-and-mortar shoppers. Additionally, Generation Z consumers showed a significantly higher propensity to buy larger ticket items like home furnishings (15%) and appliances (13%) in stores compared to the overall sample (8.1% and 6.4% respectively).
- Online Preferences: Conversely, consumers shopping online were significantly more likely to purchase hobby items (76% more likely), electronics (61% more likely) and sporting goods (61% more likely) compared to in-store shoppers.
The report also explores payment preferences, finding that the shopping channel is a stronger predictor of payment method than the specific product category being purchased. While in-store shoppers tend to favor debit cards, online shoppers primarily use credit cards. Digital wallets are gaining traction for in-store purchases, more than doubling their share from 4.3% to 10% between June 2022 and December 2024, though their growth online has been more modest and recent usage has declined from a peak.
The study also explores generational differences in shopping habits and notes the use of alternative payment methods like gift cards and buy now, pay later (BNPL) for certain online purchases, such as clothing and accessories.
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