.IE Tipping Point Report 2022

The Covid consumer [continued] .IE Tipping Point 2022: Irish e-commerce and digital business in the post-Covid era | 8 Compared to the 45% total sample, just 29% of Millennials say they will do most of their shopping in physical stores. 33% of Gen Z consumers say they will do most of their shopping online compared to 16% among the total sample. As younger Millennial and Gen Z consumers advance through their careers, buy their first home, and have children, SMEs must be prepared for a shift in purchasing power to age groups that have digital-first preferences. Businesses that do not offer a compelling online experience will simply lose out to their competitors. Of the overall consumer sample that intends to shop mostly in-store this year, 58% say they will do so because it’s more convenient and 56% because they simply want the social interaction and opportunity to go outside. A smaller proportion say that shopping in-store saves them time. Of those that say they will shop mostly online, convenience is the driving factor, followed by time saving. Many say online shopping is safer and requires less social interaction. While Covid is clearly an influencing factor for this group, it is now the third most frequently cited reason, down from the most cited reason in 2020 and 2021. Retail patriotism: resurgent or transitory? Despite a patriotic surge in buying Irish during the first year of the pandemic, in 2021 consumers turned back to international retailers, estimating that a smaller 49% of their online purchases had been with indigenous businesses since the start of the pandemic. This year, consumers have swung back to Irish SMEs; consumers estimated that 55% of their online purchases have been domestic rather than international. They were significantly more likely to have shopped for clothing, electronics, and furniture with Irish businesses than international retailers, and many expect to continue buying Irish after the pandemic across virtually all product categories. How consumers intend to do their shopping in 2022 45% I will do most of my shopping in physical stores 39% I will shop for necessities in-store but will shop for most other things online 16% I will do most of my shopping online Base: 1,000 consumers Generational breakdown of online shopping habits I will do most of my shopping in physical stores 24% Gen Z 29% Young Millennial 29% Older Millennial 50% Gen X 65% Baby Boomer I will shop for necessities in-store but will shop for most other things online 43% Gen Z 52% Young Millennial 49% Older Millennial 39% Gen X 24% Baby Boomer I will do most of my shopping online 33% Gen Z 18% Young Millennial 22% Older Millennial 12% Gen X 11% Baby Boomer