6 Reasons Why In-Store Traffic Isn’t What It Used to Be

The retail industry has experienced an unprecedented evolution over the past few years. Even before the impact of the pandemic, consumers were already turning away from the traditional in-store shopping experience. We need only to think of the shopping mall, a model dating back to the 50s that’s no longer a good fit for today’s consumers.

In-store customer traffic was already noticeably declining well before COVID-19. According to a study by Deloitte, “shopping mall customer traffic fell by 22% between 2018 and 2019,” reaching 42% in 2020 as compared to 2019.

Consumers’ habits have changed, and if companies want to keep up a solid growth rhythm, they’re going to need to adapt.

Let’s look at 6 reasons why in-store customer traffic isn’t what it used to be (and don’t worry—we promise to give you solutions further down!)

1. Marketing methods have changed.

With the advent of digital technologies and social media, marketing methods have undergone a major transformation. Before, companies had to count on ads in traditional media (TV, radio, newspapers) to reach their target audience.

Today, digital marketing allows companies to reach a wider, more diverse, and even more targeted audience (which isn’t possible with traditional media).

Read our article: How Digital Media Is Overtaking Traditional Media

2. Consumers have changed their shopping behaviour

The pandemic accelerated online shopping and gave rise to new consumer habits. Despite a return to normal, consumers have kept some of these habits. More and more, they’re making purchases based on an alignment with their values and the mission of the brand instead of just because of the product itself.

What’s more, Generation Z (born between 1997 and 2010) is the huge mass of consumers to seduce now. They can be won over by means of social media and influencers and can be attracted by a promising of enjoyment and by having values similar to theirs. And let’s be real: this generation no longer hangs out in boutiques and shopping malls like previous generations!

3. Online shopping has exploded over the past few years

We can immediately think of the impacts of the years 2020-2021 on retail shopping. The companies that survived were the ones who turned towards the only platform that was accessible during the pandemic: the internet. But consumers’ shopping habits haven’t really changed since. They’ve gotten used to shopping without having to go to a physical store. They appreciate the quick, practical side of online shopping and the ability to find what they’re looking for directly, and immediately.

It’s even easier for consumers to find the best price online than in-store; it only takes a few seconds and a few clicks to find the best deal. What’s more, they have access to other customers’ advice about the products online, which enables them to make an informed choice.

4. Shopping malls aren’t as popular as they used to be

The above-mentioned reasons explain why customers are spending less time going to shopping malls and shopping in brick-and-mortar stores. Shopping malls often haven’t managed to offer a satisfying customer experience or to meet the new expectations held by customers. Malls may not be considered “cool” – unless they offer new concepts around experiences and entertainment rather than shopping. What’s more, the current labour shortage and inconsistencies around opening hours can discourage customers.

Does that mean the malls are destined to die? Not necessarily. It just underlines that if the only way you’re attracting customers is by counting on the clientele that’s already present at the shopping mall where your store is (or stores are), it would be to your benefit to find another way to make yourself known to counter the decrease in customer traffic.

5. Inflation is affecting consumers’ budgets

With the rising cost of living, consumers are tending to make different choices to stay within their budget. Their purchasing power may have also decreased, which can result in reduced in-store shopping. They tend to look for deals and rebates, which are often easier to find online.

6. The time of year plays a key role in in-store customer traffic

Even though consumers have good reason to go to a store for specific sale events (end-of-season sales, Black Friday, Boxing Day, etc.), it’s still clear that customer traffic has greatly decreased over the past few years. Which means, of course, that you can only count on specific periods of the year to make enough in-store revenue.

Now that we better understand the reasons why in-store customer traffic isn’t what it used to be, what can you do to ensure the survival of your store?

Smart Ideas

? Be sure to have an online presence, with a website and regularly updated social media.

?Invest in online publicity to make sure you’re being seen.

This is where it’s important to choose a multi-platform strategy to reach potential customers and ensure the right amount of repetition. For advice on this, read our article: Increase sales through repetition.

? Advertise your sales online to attract the maximum number of in-store customers.

The good news is that allsales.ca has the 3-in-1 solution for these needs! allsales.ca reaches close to 200,000 customers each month through its online presence alone! Customers are already wanting to make purchases since they come on their own to look at the ads.

What’s more, you benefit from the advice of a dedicated representative who will listen to your needs and offer you a tailored solution. We can offer you the support you need (copywriting, translation, creation of graphics and much more).

Need help building back your in-store customer traffic?

Contact our team of specialists