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Shopify Adapts for Click-and-Mortar Shopping Demand
Last modified: May 10, 2024
As digital commerce continues to evolve, consumers are increasingly seeking a seamless blend of online and in-store shopping experiences. Shopify, a leading eCommerce platform, recognizes this shift and is adapting its strategies to cater to the growing demand for click-and-mortar shopping.
Shopify's Offline Segment Sees Significant Growth
In its recent investor presentation, Shopify reported a 32% year-over-year growth in its offline segment’s gross merchandise value (GMV). The company acknowledges that this area is a crucial growth lever for 2024 and beyond, as consumers continue to value the in-store shopping experience.
Shopify’s Chief Financial Officer, Jeff Hoffmeister, emphasized the opportunity to leverage the company’s point-of-sale system to bring more digital capabilities into the in-store journey. By migrating functionality to the point of sale, Shopify aims to increase the attach rate and overall opportunities for its offline business.
Unifying Digital and Physical Experiences
Shopify is focused on unifying the digital and physical shopping experiences by bringing offerings from its core online business to the offline world. For example, the company is introducing the option to pay in installments, a popular feature in eCommerce, to its in-store offerings.
According to a PYMNTS Intelligence report, more than 7 in 10 consumers prefer to visit stores at some point in their shopping journey. Shopify’s President, Harley Finkelstein, highlighted the integration of digital features such as email capture at offline checkout, enabling more effective marketing and personalization.
Personalization and Consumer Resilience
Personalization is a key factor in enhancing the shopping experience, and consumers are increasingly interested in receiving personalized offers.
A PYMNTS Intelligence report found that 83% of shoppers were interested in receiving personalized offers, highlighting the importance of leveraging digital technologies to deliver targeted experiences.
Despite concerns about consumer spending amid ongoing financial challenges, Shopify maintains that purchasing, even in discretionary categories, has held up.
The company’s President noted that consumers remain resilient and continue to buy from their favorite brands to which they feel an affinity.
Conclusion: Shopify Adapts for Click-and-Mortar Shopping Demand
As consumers increasingly seek a seamless integration of online and offline shopping experiences, Shopify is well-positioned to meet these evolving expectations.
By leveraging its point-of-sale system, unifying digital and physical experiences, and focusing on personalization, Shopify aims to deliver a click-and-mortar shopping experience that resonates with today’s consumers.
As the company continues to adapt and innovate, it is poised to capture the growing opportunities in the ever-changing retail landscape.
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