How Are Millennials Shopping Retail?

How Are Millennials Shopping
Retail?
An Invoke Xperience Takeaways Report
October 2014

Methodology
 Why did we do this research?
• Understand where Millennials prefer to shop – online or at brick-and-mortar stores – and
why.
• Explore what attributes of online retail sites and brick-and-mortar retail locations appeal to
Millennials the most?.
• Understand how Millennial shopping habits changed recently and what is driving change.
 What did we do?
 45-minute Large-Scale Focus Group™ (99 participants).
 In-session Immediate Website Usability Test where respondents were asked to visit an
online retail site and provide feedback on their experience.
 Coupled with a separate Mobile In-the-Moment retail shopping survey asking respondents
to answer questions while shopping at a brick-and-mortar retail location.
 Who did we talk to?
• Millennial – 18-34 years
• Have shopped at Target brick and mortar in the past 3 months and target.com in the past 6
months
• For Mobile piece, plan on shopping at Target (an actual store) in the next two weeks and
have a smartphone.
© Invoke 2 Solutions - Confidential

Research Highlights
 Though reported likability and changes in frequency seem to favor online retail
shopping, Millennials actually prefer brick-and-mortar when asked directly and actual
“in-the-moment” feedback suggests higher marks for brick-and-mortar.
 While online does offer an easy way to shop without the crowds and long lines, brick-and-mortar
does give Millennials a more “tangible” shopping experience (they can interact with
items, see them with their own eyes, try on clothes, etc.) that online simply cannot give
them. Additionally, brick-and-mortar is also preferred by some because it offers them
immediate gratification as they can walk away with their items directly following purchase.
 While immediate gratification may be seen as something Millennials could achieve
through something such as in-store pickup, they are split on whether they actually take
advantage of in-store pickup. While this does enable them to cut shipping times (and
costs), this goes against much of what seem to be core benefits of online retail –
convenience, ease of shopping, not having to leave the house.
 While this is not explored in this report, something such as same-day shipping seems like
more like something that can combine a true online shopping experience with the
immediate gratification Millennials are looking for.

4
GENERAL FEEDBACK: BRICK-AND-MORTAR VS.
ONLINE RETAIL

Large-Scale Focus Groups™ brings research to a higher level by creating an event that involves
decision makers, researchers, and current and potential customers
© Invoke Solutions - Confidential
How A Large-Scale Focus Group™ Works
Participants
• Take part from the
privacy of their homes
or offices
• Answer anonymously,
proving candid,
unbiased responses
• Experience a fun and
highly engaging
process!
Observers
• Watch sessions from any
location with an Internet
connection
• Analyze live feedback
using a dashboard with
built-in analytical tools
• Discuss and react to
results with rest of the
decision-making team
Host
• Controls the session and leads back-room
discussion about the results in real-time.
• Sends out questions and stimuli to participants
• Adds additional questions on the fly if necessary
5

Though there is a decrease in reported frequency, Millennials
are still positive towards brick-and-mortar
• 78% of Millennials have shopped at a brick-and-
mortar retail location within the past
week.
• 33% say they are shopping at brick-and-mortar
more often than they were a year ago
(top 2 box).
• 28% say they are shopping at brick-and-mortar
less often (bottom 2 box).
Brick and
mortar retail
fast facts
Millennial Brick-and-Mortar Retail Likability
76%
44%
32%
18%
5%
1%
6%
Top 2 I love it! I like it
somewhat
I neither
like nor
dislike it
I dislike it
somewhat
I do not like
it at all
Bottom 2
• 76% of Millennials like shopping at brick-and-
mortar retail locations (top 2 box)
and 44% love it.

Millennials often like the tangible experience of brick-and-mortar
and immediate gratification, but lines/crowds are negatives
Brick-and-Mortar Likes Brick-and-Mortar Dislikes
Often, Millennials like that brick-and-mortar
offers them the chance to see products in
person/interact with them. Immediate
gratification is also a positive.
• “To actually pick up, touch, test or try on the
products I am interested in as well as being able
to get them that day.”
• “I like being able to view and touch things to be
able to judge quality in person. No surprises
that way.”
• “That you are able to get the products you need
right away.”
The crowds and long lines, however, are common
dislikes when it comes to brick-and-mortar and a
few Millennials dislike when items are out of stock.
• “I don’t like dealing with crowds of people.”
• “Standing in line for check out.”
• “Large crowds, things that aren't in stock when
you made a trip for them.”
• “The selection is sometimes limited and the
stores are usually crowded.”
7

Reportedly, Millennials are shopping more online though past-week
shopping is not as common as brick-and-mortar
• 62% of Millennials have shopped at an online
retail site within the past week.
• 79% say they are shopping online more often
than they were a year ago (top 2 box).
• Only 3% say they are shopping online less
often (bottom 2 box).
Online retail
fast facts
Millennial Online Retail Likability
• 93% of Millennials like shopping at
online retail (top 2 box) and 67% love it.
93%
67%
26%
6%
1% 0% 1%
Top 2 I love it! I like it
somewhat
I neither like
nor dislike it
I dislike it
somewhat
I do not like
it at all
Bottom 2

Millennials often like the price and convenience of online, but
dislike waiting, shipping charges and/or the lack of interaction
Online Likes Online Dislikes
Millennials often mention price (or the ability to
compare), convenience and/or ease of shopping
as things they like about online retail shopping.
• “Getting better prices, the convenience, and no
people.”
• “The beautiful clothes are the thing I love the
most, at such good prices.”
• “I can compare prices without having to go to
each store individually.”
• “I can do it from the convenience of my home.”
• “You don't have to leave the comfort of your
own home.”
Millennials often do not like waiting for delivery,
shipping charges and/or the lack of interaction with
product that comes along with shopping online.
• “Having to wait sometimes a long time for the
product to arrive.”
• “I have to wait for delivery of my purchases.”
• “That you cannot get the product the same day!”
• “Shipping and handling charges, waiting for
delivery.”
• “I can't physically see or touch the product. I
don't know exactly what I am getting.”
• “Not being able to test or try the product.”
9

When compared directly, Millennials slightly prefer brick-and-mortar
shopping
When asked what brick-and-mortar offers that
online doesn’t, Millennials often point to
interaction (with product and person).
• “The personal interactions, being able to ask
questions to a real live human. Being able to
see, touch, smell the product first.”
• “The ability to hold the product in my hands.”
• “The presence of live customer service to ask
questions about products or in-store policies.”
• “Live assistance and testing a product in
person.”
• “I like to try clothing on before I buy it.”
• “The excitement to try on clothes, and be hands
on with it.”
On the other hand, Millennials often think that
online offers lower prices/deals and convenience
over brick-and-mortar.
• “Better deals, better prices.”
• “More competitive pricing.”
• “Lower prices.”
• “Good deals like coupon code and free shipping.”
• “The ability to shop in the convenience of my
home.”
• “Convenience of shopping without having to
leave home or drive far.”
• “I guess just the convenience of not having to
leave your house to buy things.”
10
• When asked to compare them directly,
45% of Millennials prefer shopping at
brick-and-mortar (top 2 box) while 30%
prefer shopping at online (bottom 2 box).
45%
20%
24% 26%
18%
11%
30%
Prefer brick-and-
mortar
(NET)
I very much
prefer
shopping at a
brick-and-mortar
store
I somewhat
prefer
shopping at a
brick-and-mortar
store
I have no
preference
between the
two
I somewhat
prefer
shopping
online retail
I very much
prefer
shopping
online retail
Prefer online
(NET)

Millennials are split on using in-store pickup
• While 48% of Millennials use in-store
Millennials that use in-store pickup often say they
do so to avoid shipping times and/or costs.
• “So I don't have to wait for it to be shipped to
me.”
• “So I don't have to wait for it to be shipped to
me.”
• “I do this because its best to get the product
you want sooner without shipping fees.”
• “Sometimes I like to save on shipping.”
• “Because it eliminates shipping costs.”
Those that do not use in-store pickup often say
they are shopping online to eliminate the hassle of
going to a store.
• “It seems easier to have items shipped directly to
me. If it is convenient I use site to store.”
• “If I'm buying something online, I don't want to
have to then go to the store to get it.”
• “Because I buy online to get something delivered
and if I wanted to buy in person I would go to the
store. online is for the convenience of it being
shipped to my home.”
11
pickup at least somewhat
often (top 2 box), 52% say they
hardly ever or never use it (bottom 2
box).
How often do you use in-store pickup?
48%
11%
37%
40%
11%
52%
Top 2 Very often Somewhat
often
Hardly ever Never Bottom 2

12
LARGE-SCALE FOCUS GROUP: IMMEDIATE
WEBSITE USABILITY

Immediate website usability methodology
• After Millennials were asked exploratory questions
regarding general brick-and-mortar and online shopping
habits and attitudes, they were asked to click on a link
that brought them to target.com.
• Target was used to ensure brand stayed consistent in both
mobile and Live session exercises.
• Once at target.com, these Millennials were asked to
complete a shopping trip there (they were encouraged
to mimic a recent Target shopping trip) all the way to
checkout.
• This was done within a framed window that enabled
them to easily return back to the session and contained
their instructions for reference.
• After they completed their shopping trip, these
Millennial respondents were then asked questions
about their experience to ensure feedback was
gathered as close to the experience as possible.

Many like shopping online and/or found it easy
Online shopping likability
71%
34% 37%
15%
10%
4%
14%
Top 2 I loved it! I liked it
somewhat
I neither
liked nor
disliked it
I disliked it
somewhat
I did not
like it at
all!
Bottom 2
Many Millennials like how easy it was to shop online,
noting ease of navigation/use and ease of finding
items specifically.
• “How easy it was to find things specifically for me.”
• “It was easy to find everything, it had what I wanted and in
the size I needed.”
• “It was easy to navigate through.”
• “Easy to search for items, easy to find items, easy to
navigate, great product descriptions.”
• “It was quick and easy to find exactly what I wanted.”
• “user friendly interface, it was easy to navigate
Online ease of shopping
82%
55%
27%
9% 6% 3%
While many dislike nothing, others point to a lack of
selection as a negative and a few note the inability to
physically interact with the items they were buying.
• “Random sizes not available online.”
• “They didn't have a great selection and took a minute to load
page.”
• “Did not have everything I was looking for.’
• “I was a little leery about buying the shoes without trying
them on first, but I'm sure you're able to trade them in for a
different size if they were wrong.”
• “if I cannot fit the clothes I would not know if it will fit to me.”
10%
Top 2 Very easy Somewhat
easy
Neither
easy nor
difficult
Somewhat
difficult
Very
difficult
Bottom 2
29% of millennials bought something they did not plan on buying.

While several are glad to shop online, there exists 1/3 that would
have rather shopped at brick-and-mortar
Could you have done this at brick-and-mortar?
9%
14%
33% 44%
I don’t think I could have
completed this shopping trip
at an actual Target store
I probably could have
at an actual Target store, but
I would prefer it online
at an actual Target store, and
I would have preferred that
None of these describe how I
feel
Ease of shopping/finding items are
why Millennials often would prefer to
shop online.
“Online is easier to find your items then
walking through a store in different parts of
it.”
“So much easier. Didn't have to drive, spend
money on gas, and deal with people.
much easier than walking through a whole
store for a few items.”
Those that would have rather shopped
in an actual store often miss
interacting with products online and/or
want immediate gratification.
“I would like to see a costume in person
before I purchase it.”
“I would want to try the clothes on before I
buy them.’
“I would have had the product (shoes) right
away.”

16
MOBILE: IN-THE-MOMENT BRICK-AND-MORTAR
FEEDBACK

Mobile methodology
• In addition to the existing recruit specs, a subset of
millennials were asked if they were going to be visiting a
Target physical store location in the next two weeks.
• Target was used to ensure brand stayed consistent in both
mobile and Live session exercises.
• Once they got to the store, respondents were asked to
sign into their survey.
• Respondents were asked a few questions before their
trip, then asked to go about their normal shopping trip
and answer a few questions afterwards.
• Respondents were also asked to upload a picture best
representing their shopping experience and explain why
that image best represents their shopping trip.

Nearly all Millennials have an idea of what they are going to buy
when they get to a brick-and-mortar location
When did you make your purchase decision?
7%
41% 52%
I knew EXACTLY what I was
going to buy today by the time
I got to the store.
I somewhat knew what I was
going to buy, but am making
part of my decision in the
store.
I am making my purchase
decision ENTIRELY when I am
in the store
Some millennials making part of
their decision in-store know the
product category but not
specifics, such as brand.
“Know the products I want to buy, not
certain of the brands I will end up
purchasing, have a few brands in mind.”
“I know generally what I'm looking for. I
know the categories. I don't know which
specific products I will purchase.”
A few are sure they are buying
groceries, but may make other
decisions in-store.
“Knew grocery items, wasn't sure about
other items.”
“Know that I am buying groceries and
might but a Blu-ray depending on
what's out.” 39% of millennials bought something
they did not plan on buying.

Nearly all liked their brick-and-mortar shopping experience
and/or found it easy
Brick and mortar shopping likability
93%
72%
22%
4% 2% 0% 2%
Top 2 I loved it! I liked it
somewhat
I neither
liked nor
disliked it
I disliked it
somewhat
I did not
like it at all!
Bottom 2
Often, millennials like how well-organized the Target
brick-and-mortar store is. Some like the specials/deals
available and a few simply like the overall experience.
• “The items were organized in an orderly fashioned manner!”
• “I liked the flow of the store, cleanliness, layout, easy to find
the sections and products I was looking for, wide selection of
products.”
• “I found some good deals on Halloween decoration items.
Shopping was fast and easy.”
• “It got me out of the house.”
• “Target is much slower in the evenings so I like coming when
there are less people here. It is also well organized and easy
to find what I'm looking for.
91%
72%
20%
9%
0% 0% 0%
Top 2 Very easy Somewhat
easy
Neither
easy nor
difficult
Somewhat
difficult
Very
difficult
While there are some that dislike nothing about their
experience, a few mention crowds/lines and/or too-high
prices.
• “It was a bit busy today.”
• “Somewhat crowded. Couldn't find sponges.”
• “Slow checkout.”
• “Crowded.”
• “The long lines.”
• “A lot of things are more expensive than some other stores.”
• “I was shopping for clothes for my children and even the sale
prices were a little high.”
Bottom 2
Brick and mortar ease of shopping

In-store holds appeal over online for many millennials
Could you have done this online?
43%
9%
41%
7%
I don’t think I could have
at target.com
at target.com, but I am glad I
came to the store
target.com, and I wish I had
done that instead of coming
to the store
None of these describe how I
feel
Often, millennials are buying food
products such as produce they would
not buy online.
“I bought fruit so they don't sell that online.”
“Because in the store I got fresh vegetables
and fruits.”
A few think they would have missed
something, such as specials or other
items.
“Staring at a screen for only one item. Miss
sales in store and while walking think of
other things to look at.”
The overall experience and immediate
gratification are also in brick-and-mortar’s
favor.
“Nice to shop at the store than online - you
could get the stuff right away. Less hassles.”
“Because I could buy online, but in-store is
fun.”

When asked for images that best depict their shopping trip,
respondents focus on…
…the aisles and displays... …and the products they buy...
“Stock-up trip”
“I love
Halloween
because I love
eating candy.”

“Thanks for looking through the results. I hope you
find this data as interesting as I do. Please let me
know if you have any further questions about Invoke
or our services.”
Wayne Goodreau
22
ABOUT INVOKE
Since 1999, Invoke has helped
its clients better understand
their customers’ perceptions of
their brands, advertising and
communications.
2013 Ogilvy Award for Excellence
in Advertising
2013 “Hottest Companies in
Boston” Award
Wayne Goodreau
Vice President, Research & Insights
If Wayne could only choose 5 movies to watch for the rest
of his life, he would choose (in no particular order)
Goodfellas, Caddyshack, Jaws, Empire Strikes Back and
It’s a Wonderful Life.

How Are Millennials Shopping Retail?

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