Study shows physical retail resurgence and demand for faster deliveries

International advertising and marketing agency VML has released the eighth edition of the Future Shopper Report.  

The 2024 study provides a global snapshot of the modern shopper. It surveyed 31,500 consumers across 20 countries, including South Africa and various other emerging markets, to reveal a dynamic retail landscape challenging established trends and ushering in new opportunities for brands. 

Advances in technology have brought unparalleled digital brand offerings in recent years, but new findings indicate the future of retail is being shaped by a multitude of trends, including the growing desire for a seamless omnichannel experience. Among the report highlights: 

Physical retail resurgence 

As physical retail undergoes a resurgence, brands must embrace innovation and immersive experiences to compete in an omnichannel world.  

Globally, online spending saw a 5% decline from 58% in 2023, suggesting shifts towards more balanced shopper activity across online and offline environments, plus a growing demand for real-life experiences. 

In South Africa, online spending declined 3% from 58% in 2023 to 55% in 2024. While online shopping remains dominant, physical retail is experiencing a sharp resurgence among global consumers – more than half of whom prefer brands with both physical and online stores.  

Mobile shopping is dominant 

Mobile devices are now the dominant force in online shopping, accounting for 36% of all online spending globally (up from 32% in 2023) and 34% in South Africa.  

Despite consumer preference for mobile, 40% of global consumers find shopping on mobile phones “difficult”, and 66% believe brands and retailers should work harder at making their mobile experiences better.  

In-store browsing for inspiration 

Respondents reported a preference for browsing in-store when looking for inspiration or ideas for products to buy across nearly all categories. 

One exception was luxury products (such as high-end clothing, watches, jewellery, bags and art), where 38% of respondents said they browse brand websites. 

Similarly, 38% of respondents reported looking at other online marketplaces when needing inspiration for technology purchases (such as smartphones, tablets, computers and headphones).  

The need for speed 

Consumers crave speed and convenience in all aspects of their shopping journeys. Delivery speed expectations have reached new heights as people demand near-instant gratification. 

Expectations are not only high, but they’re also growing at an exponential rate. Thirty-one percent of global consumers expect delivery of online orders within two hours. This is up from 23% in 2023 and 4% in 2021. 

Research also indicates that, across industries, consumers expected average wait time of just under two days. In South Africa, 95% of respondents indicated that speed was important when purchasing online and they expect delivery of online orders within three days across all categories. 

But speed isn’t only about delivery. Sixty-three percent of consumers globally report that they want inspiration through ‘search’ capabilities so as to purchase as quickly as possible.  

You can download the report here.