.IE Tipping Point Report 2020

The omni-channel future Businesses that reopen their physical stores are required to meet new public safety requirements, such as the provision of protective screens and health information signage. This can require significant upfront expenditure, and will mean reduced capacity in- store, with smaller margins for physical stores. Digital offers the opportunity to grow and scale and complement in- store sales. Combined with Irish consumers’ willingness to spend more online, these factors may be affecting SMEs’ long-term plans. 54% say they will prioritise their online store or give equal importance to both. Fewer than half (45%) of SMEs that invested in online services during the crisis say they will be prioritising their physical store over online in the future. 97% will continue to invest in online services after the crisis; 59% say this will become a major priority. 53% of SMEs predict that consumers will buy from both physical bricks- and-mortar stores and online stores, which suggests that the importance of omni-channel retail is increasingly understood by small businesses. Click and collect, order online before you arrive, order online to cook at home, browse at home to purchase in-store – these trends are accelerating. However, when only a quarter of SMEs sell online, few of these businesses will actually be in a position to fully satisfy their customers’ needs, unless they invest in e-commerce now when Government funding is readily available. The same can be said for delivering services online. How social distancing and capacity limits impact consumers’ decision to shop in-store (Base: 1,000 consumers) 24% 23% 53% THEY WILL PREFER TO BUY MORE PRODUCTS ONLINE THEY WILL PREFER TO BUY MORE PRODUCTS IN-STORE THEY WILL BUY IN BOTH Section 4  |  E-commerce in post-Covid-19 Ireland [continued] How SMEs believe consumers’ long-term shopping habits will change as a result of Covid-19 (Base: 500 SMEs) 12% Far less likely to shop in all physical stores apart from those selling necessities 25% Somewhat less likely to shop in all physical stores 26% Won’t have any impact 15% Somewhat less likely to shop in all physical stores apart from those selling necessities 22% Far less likely to shop in all physical stores of SMEs that have spent on online services since the crisis will continue to invest in them in the future (Base: 100 SMEs that have invested in online since Covid-19 crisis) 97% 15% 12% 22% 25% 26% 11