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Retail & E-Commerce

The State of Retail & E-Commerce Report: Q1 2022

February 2022

Report summary

For more recent data and analysis, see The State of Retail & E-Commerce Report: H2 2022.

Consumer comfort with in-store shopping is rising as online sales growth stabilizes after a period of pandemic-driven acceleration. Retailers must reassess consumers’ shifting shopping priorities and behaviors to determine the path forward.

Key Takeaways

  • Comfort with in-person shopping is growing, and most people still prefer physical stores: Investment in digital tools to meet consumers where they were — in their homes, for much of the last two years — was not for nothing. Shoppers’ journeys will increasingly bridge digital and physical channels.
  • The growth of online shopping has largely plateaued: The continued growth of online shopping will require investment in digital product discovery. Emulating the tactile experience of in-person shopping will be the next big challenge for online retailers.
  • Consumers aren’t driving the push for faster delivery: The competition for ultra-fast fulfillment in the grocery sector is heating up. If consumer expectations shift, all retailers will be impacted — but for now, people are generally happy with delivery speeds.
  • Failure to differentiate could be the death knell for brick-and-mortar stores: This report reveals what drives key demographics to shop online or in person. The future of physical stores lies in offprice expansion and high-end experiences, with little value in the middle.

Methodology

This report draws from survey research conducted in December 2021 and January 2022 from among 8,208 respondents in the United States, Australia, China, France, Germany, Mexico and the United Kingdom. It also references Morning Consult’s Return to Normal trend data, which leverages weekly surveys of roughly 2,200 U.S. adults.

The interviews were conducted online, and the data was weighted to approximate respective populations of adults based on gender, educational attainment, age, race and region. Topline results from the survey have a margin of error of up to +/-3percentage points.

About the author

A headshot photograph of Claire Tassin
Claire Tassin
Lead Retail & E-Commerce Analyst

Claire Tassin previously worked at Morning Consult as the lead retail & e-commerce analyst.