CBC Affiliates Survey reveals consumer expectations for same-day delivery & mobile wallet shaping retail experience

New York, NY As mobile wallets and same-day online delivery become a cornerstone in the modern shopping experience, commercial real estate is quickly adapting to meet the warehousing and retail needs expected from consumers.A Coldwell Banker Commercial Affiliates survey, conducted by Harris Poll and released today, explores how retail expectations and habits have recently changed and how Millennials (ages 18-34), Gen Xers (ages 35-49) and Baby Boomers (ages 50-69) prefer to shop online and in stores. The survey of over 2,000 U.S. adults found that the in-store and online shopping experience is evolving with the emergence of mobile wallet platforms and the availability of same-day delivery. Millennials lead the trend and are most likely to expect these conveniences when shopping, validating the importance of an omni-channel option for retailers. Though convenient e-commerce options are expanding, the data also reflected a continued affinity towards the traditional in-store shopping experience, especially from Millennials. “Retailers are moving closer to consumers, and the supply chain is rapidly evolving to accommodate this,” said Fred Schmidt, president and chief operating officer of Coldwell Banker Commercial Affiliates,. “Shoppers still value the traditional in-person experience but expect efficiency and expediency. These generational trends help paint a clearer picture for commercial real estate of where warehousing and inventory space may be headed, as well as how traditional retail space is evolving.” U.S. Consumers Expect Convenience When Shopping Online and Experience When Shopping in a Store Same-day delivery options, as well as delivery convenience options such as Amazon Dash push-to-buy buttons, are transforming online shopping habits and engraining the expectation of retail convenience. Half (50%) of U.S. adults are more likely to make a purchase online if there is a same-day delivery option, and 40 percent expect this option to be available when shopping online. Overall, the option of same day delivery is more likely to drive the purchasing decisions of Millennials and parents with children under 18 living in their household (hereafter referred to as “parents”) than other generations and segments of the population. • Millennials are more likely to make a purchase online if there is a same-day delivery option (64%) compared to other generations (56% for Gen Xers and 40% for Baby Boomers). • Same-day delivery is significantly more likely to make parents make a purchase online (63%) than nonparents (46%). • 50% of parents expect the option of same day delivery when making a purchase online, compared to just 36% of nonparents. This is not to say that the in-store experience is obsolete. Overall, 69% of U.S. adults prefer to make their purchases in a store, and it’s the experience that keeps them coming back. • 72% of Millennials say they prefer shopping in a store, compared to 65% of Gen Xers and 68 percent of Boomers. • In addition, Millennials are much more likely (73%) than other generations to enjoy the experience of being in a store or mall, compared to 58% of Gen Xers and just 48% of Boomers. The trend towards same-day delivery is already shifting suppliers’ inventory needs. As same-day delivery pilot programs begin to surface in urban areas, retailers are quickly acquiring warehouse space immediately outside large urban areas to meet the burgeoning demand. As these same-day delivery programs become national, the demand for these warehouses is likely to continue in both urban and suburban areas. U.S. Consumers Are Growing Fond of Mobile Wallet Technologies While the concept of mobile wallets is still somewhat of a novelty, Millennials and parents of young children are more open to embracing this type of technology. • One in three (33%) Millennials agree that making purchases with a mobile wallet (e.g., Apple Pay, Google Wallet, Visa PayWave) is important to them, compared to only 21% of the total survey population. • Similarly, parents are nearly twice as likely to feel that making purchases with a mobile wallet is important, 33% of parents compared to just 17% of nonparents. “As mobile payment systems evolve, physical retail space will continue to adapt,” said Schmidt. “Technology provides new opportunities to improve the overall in-store and checkout experience for retailers and consumers alike.” As Millennials and parents, who may be shopping with their hands full, push demand for the simplicity and speed of mobile payments, brick and mortar retailers can redefine the space and experience of their stores by moving - or even removing - cash registers, shortening check-out lines and satisfying this shift in demand. “The advances in retail technology and the conveniences associated with them are driving our commercial real estate needs,” said Schmidt. “Commercial real estate professionals should pay attention to how these tools and trends develop and continue to think about how they will revolutionize the consumer experience.” The survey was conducted online within the U.S. from July 28-30 among 2,045 adults ages 18 and older, by Harris Poll on behalf of Coldwell Banker Commercial Affiliates via its Quick Query omnibus product. Figures for age, sex, race/ethnicity, education, region and household income were weighted where necessary to bring them into line with their actual proportions in the population. Propensity score weighting was used to adjust for respondents’ propensity to be online.