New research shows decline in online shopping

New research from Penneys, in partnership with Amárach Research, reveals that Irish consumers are returning to town centres as the online shopping peak wanes post-pandemic. Almost half of consumers in Ireland (46%) are now less interested in shopping online, while 6 in 10 (61%) of the public now feel shopping in-store is more enjoyable than online.

The research, which has been warmly greeted by retailers, is published in the second edition of the Penneys ‘Pulse of the Nation' Index, and among the reasons cited by consumers for a return to in-store shopping is the hassle of returns and sustainability concerns.

61% of those surveyed now feel shopping in-store is more enjoyable than online, preferring to put their money into their local towns and communities, although many have raised concerns that town centres need investment and reinvigorating.

The 1,200 research participants were quizzed about why their interest in online shopping had waned, with a range of revealing responses. Some of the top reasons flagged included the hassle of returning items bought online (55%); that the products they had purchased were not as advertised (45%); increased costs associated with returning goods bought online (39%); experienced delays in receiving goods or did not receive their product at all (31%); or have concerns about the carbon footprint associated with making returns (21%.)

These factors are reflected by a pendulum swing in the levels of online shopping recorded. While Irish shoppers went online as a result of the pandemic, it seems that change did not become permanent and since lockdown lifted, shopping behaviour has reverted back to its pre 2020 pattern.

The Central Statistical Office (CSO) reported that only 7% of clothing, footwear and textile sales from Irish registered companies were online purchases in 2019, but this spiked to 66% of all sales for the category in April 2020. Since that peak however, there has been a shift back with online sales of clothing, footwear and textile sales accounting for just 8% of overall turnover in February of this year.

The Penneys Pulse of the Nation Index research also reveals that the Irish tradition of ‘going to town’ is alive and well. Irish consumers want to spend time and money in their community, with 79% of people preferring to shop locally in their town when they can, while 86% believe that busy town centres are vital for the health of the local economy.

Trends like hybrid working are providing a boost to the local economy across the country, with almost half (43%) of shoppers spending more in their community than prior to the pandemic. A sense of local pride is evident, with 42% stating that they were even prepared to pay higher prices to support local businesses – a clear signal of the importance that they place on a thriving local economy.

However, the research reflects recent challenges across many regional towns with people citing concerns around derelict buildings (57%), businesses closing down (51%) and anti-social behaviour (41%) ranking as the top three issues in their area.

While there is a strong desire for these issues to be addressed, there is also positivity with 68% saying they are optimistic about their community. The top five improvements people would like to see in their area are more public amenities such as benches, playgrounds, bins (54%), more cafés or restaurants (37%), more clothing/footwear/accessories stores (37%), improved cycling infrastructure (32%) and more specialist stores such as butchers or bakeries (31%).