.IE Tipping Point Report 2020

Section 4 E-commerce in post-Covid-19 Ireland All currently available data suggests that Covid-19 will be with us for the foreseeable future. Until an effective treatment or vaccine is found, consumers and employees are likely to be engaged in some form of social distancing, and businesses will continue to experience restricted trading while managing employees who are working from home. The question that many businesses and government bodies are asking now is whether the behavioural changes consumers have undergone during the lockdown, such as their increased propensity to spend online with Irish businesses, will continue when the Covid-19 pandemic ends. Consumers will only return to physical stores in confidence if and when Covid-19 has been deemed controlled and social distancing is no longer required. In this future scenario, almost half (48%) of all Irish consumers say they would do most of their shopping in physical stores. The remaining 52% would either continue to shop in-store for necessities, like groceries, but online for other goods; or do all their shopping online. Until Covid-19 is controlled, however, social distancing, queues, and capacity limits are here to stay. Consumers are aware of this, and online shopping offers them a way to avoid inconvenience and crowds. Just under three-quarters (74%) say that current restrictions will impact their decision to shop in physical stores to some degree. 48% of consumers would still do most of their shopping in physical stores 41% would shop for necessities in physical stores but shop for the rest online and 11% would shop mostly online (Base: 1,000 consumers) Reflecting the psychological toll of lockdown and the desire to go outside and be social, once Covid-19 is controlled... Why consumers would prefer to shop mostly in-store (Base: 480 consumers who would choose to shop mostly in physical stores in ideal scenario) Why consumers would prefer to shop mostly online (Base: 110 consumers who would choose to shop mostly online in ideal scenario) Safer/requires less interaction Saves time More convenient Requires less travel Cheaper 59% 56% 51% 50% 29% More convenient Want to go outside/be social Saves time Local/preferred retailer not online Cheaper 62% 55% 24% 21% 14% 10