A.T. Kearney report calls prices, experience keys to success

CHICAGO — Brick-and-mortar stores will remain the leading destination for back-to-school shoppers this year, according to a new report by A.T. Kearney.

“Although online retail sales continue to increase, 57% of our survey respondents plan to make purchases in stores,” said Joel Alden, a partner at A.T. Kearney who co-authored the report. “Therefore, it is more important for retailers to examine every aspect of their in-store shopping experience. Additionally, our survey found that 80% of these shoppers are open to mobile shopping apps and personalized promotions while in stores, a significant increase since we last measured this just nine months ago. The question then becomes, can mobile be part of that enhanced, in-store experience?”

The study found that in aggregate, consumers plan to spend more than last year. Almost 80% of those surveyed said they expected to spend as much or more as they did last year, and nearly half of the total sample expected to spend more. Another finding: despite the fact that omnichannel back-to-school promotions are starting earlier and earlier each year, only 4% of shoppers said they did any of their shopping by July 4th. (Those who did shop that early were overwhelmingly likely to do so online.) The majority of consumers surveyed said they planned to do most of their shopping in August and September.

When it comes to what those shoppers will be looking for, the study found that what matters most to consumers are competitive prices (91%) and a superior shopping experience in-store, online and via mobile (85%). Consumers are also increasingly open to using mobile shopping apps and personalized promotions while in stores. The survey found that 61% of consumers have signed up for (or intend to sign up for) mobile payment apps — up from 37% during the 2015 holiday season.

“The first time we ran this particular study was when we were approaching the 2015 holiday shopping season, and it’s been remarkable to see the changes between those survey results and these in nine or so months,” Alden said. “But brick-and-mortar plays a far larger role in back-to-school shopping than in holiday shopping. Retailers should be poised to take advantage of the increased foot traffic they’ll gain in the upcoming shopping season, by making best use of in-store offers, mobile and omnichannel, that can direct shoppers and increase their basket size. Overall, the back-to-school season should be good news for retailers who have been doing their omnichannel homework; and perhaps a wakeup call to those who have been reluctant to make these investments.”