Irish consumers want their basic needs of value, cleanliness and security met above all else before deciding where to shop, according to new research.
The CBRE report, which surveyed 1,000 consumers in Ireland as part of a European study, found that while 51 per cent of Irish consumers favour shopping in large purpose-built shopping centres, 48 per cent prefer shopping in smaller centres or high streets.
This bodes well for smaller shopping centres which, with a maintained level of investment, can meet the needs of Irish consumers.
CBRE’s research also found that travel convenience was critical to the Irish consumer’s choice of where to shop.
Fifty-six per cent travelled between 11 and 30 minutes to their main shopping location – slightly longer than the majority of Europeans who travel under 15 minutes to their preferred shopping location.
This suggests the potential drivetime catchment for an Irish shopping centre is larger than the European alternative, as more than 71 per cent of Irish consumers favour travelling by car when shopping for nonfood items.
As a result, parking and the offer of free parking can be particularly influential for the Irish consumer, who on average ranked these more important than the range of shops on offer.
Choice
But, once these basic needs are met, it is the choice of retailers along with suitable services such as banks that Irish consumers look for in their shopping location.
Irish shoppers also see independent retailers, the fact that a centre is covered and the presence of at least one large fashion retailer as “fairly important” when deciding where to shop.
But where larger centres might have an advantage over smaller ones – in catering facilities, entertainment options and events such as fashion shows – was not ranked high in importance by Irish consumers.
"This survey has been particularly useful in learning exactly what it is that the consumer looks for when choosing where to shop," said Aidan Grimes of CBRE.
“Although a considerable amount of investment has been placed on the additional services that a centre can offer to provide an enjoyable experience to the consumer, shopping centre managers must not lose sight of the basics – such as price, convenience, cleanliness and security – as we have now quantified that these are essential, qualifying criteria that must be in place to meet consumer needs and attract consumers to their centre.” he said.
Glue
“Other services are essentially the glue that will keep the consumer at the centre for longer.
“We’ve seen across Europe that in a challenging economic climate, improving facilities has been difficult, but failure to adapt by owners, and those involved in their development and management, will inevitably lead to a loss of market share in a changing retail environment.”
Suzanne Barrett, associate director of research in CBRE, said an interesting aspect of the survey is the use of technology in the Irish consumer market and the extent of the interaction between the online and shop platform.
“We have essentially learned that the Irish consumer juggles a range of channels in the research and buying process of a nonfood item,” she said.
“While technology is used extensively to search and check the prices and reviews of products, close to 90 per cent of Irish consumers prefer to visit a shopping centre or high-street store when buying a product.
“Smart technology is being utilised to make the consumer smarter,” she said. “However when it comes to buying a product just 9 per cent of consumers order nonfood items online weekly.”