CBRE Consumer Survey: Brick-and-mortar customer preferences are changing, especially among young people

A survey by the real estate consulting company CBRE among 1,700 customers of shopping centres across the country reveals gradual changes in the consumer behaviour of Czechs and at the same time responds to key topics related to shopping in the modern era. Whether it's about second-life products, paid returns for online orders, or the impact of influencers on purchasing decisions, CBRE provides specific answers.

Second-life products have the potential to motivate every second customer to visit the store

More and more retailers are offering to sell goods that have an admitted "cosmetic defect" or have damaged packaging and therefore cannot be sold as new. Another option are products that have already been used, but are still in good condition, which can be bought back. The dealer will check them, service them if necessary and then offer them for sale again at a reduced price, with a full warranty period. The purpose of this entire concept is to reduce waste, increase the availability of certain products and take into account the impact on the environment. Such recycled goods are currently offered by fashion brands, as well as furniture chains and electronics retailers. And how do customers appreciate this approach?

"The results of the survey showed that half of the respondents would potentially be motivated to visit a store in a shopping centre that offers such products. Most young people between the ages of 18 and 25, as well as the 26 to 44-year-old category, performed above average. Potential interest was declared mainly in clothes, which was mentioned by 86% of the respondents. The next relatively highly rated category was books, toys and (video) games, followed by the category of furniture, sports equipment and electronics," comments Aleš Nečas, Associate Director in the Advisory & Transaction Services Department at CBRE.

When shopping, 45% of people under 35 are affected by the recommendations of influencers they follow

Influencers from social networks are becoming a powerful tool for companies to reach customers. They allow them to connect with customers in a way that can hardly be achieved with other forms of marketing. It is not only the number of followers that is important, but also the right choice of influencer, who naturally fits the specific campaign and the needs of the target group. He then shares his own experience with the product or service. A CBRE survey confirmed that customers who regularly follow influencers also trust them and this affects their purchasing decisions to some extent.

“A total of 62% of respondents say that influencers have no impact on their purchases, but a full 30% of respondents admit that they do. At the same time, the results in the 18- to 34-year-old category are absolutely crucial, where 45% of respondents admitted that influencers affect them when making purchasing decisions," stated Aleš Nečas.

Paid returns of online goods can redirect customers to brick-and-mortar stores

Another current topic is the return of goods purchased in e-shops. The consumer has the right to withdraw from the contract and return the goods within 14 days of receipt from the online store. According to the Civil Code, the cost of sending such a package is to be paid by the consumer, but some merchants reimburse the postage anyway. The trend of an increase in the number of returns has been observed in domestic e-commerce for a long time, but the Covid-19 pandemic has greatly accelerated it. According to data from CBRE, which regularly compiles the Shopping Centre Index, which maps the performance of regional shopping centres, 33% of merchants have already started charging for returns, and another 11% are planning to do so. So, the question is how customers will react to it.

"If it were possible, a total of 45% of those surveyed would use the free return of goods at brick-and-mortar stores in such a case. Such a solution is potentially beneficial for both parties. Traders can take benefit from personal contact with the customer and offer him a replacement or another product for purchase," explained Aleš Nečas, adding: "In any case, it is confirmed that this is the reason why traders should proceed cautiously in this direction. A total of 23% of respondents would limit their online purchases if returns were charged, and 13% would stop shopping altogether.”

For 87% of respondents, ESG is an important topic and influences their purchasing decisions

Social responsibility and sustainability have become more and more important in recent years, across all age categories. "Eighty-eight percent of all respondents try to waste less, 49% buy more from local producers, 46% have started to buy second-hand products in some assortment, and 42% choose to buy environmentally friendly products in some assortment, even if they are more expensive. Furthermore, 40% buy more from brands with a responsible approach, 27% stopped buying a brand or using a service because of their attitude towards ecological and social issues, and 25% of the respondents borrowed a product instead of buying it," concluded Aleš Nečas.

More about the survey

The customer survey was conducted between April 3 and 19, 2024, with the aim of identifying changes in customer purchasing behaviour influenced by the current economic and geopolitical environment in the Czech Republic. The group of respondents consisted of almost 1,700 customers of domestic shopping centres.

About CBRE Retail

CBRE is an expert in the management of retail space, and currently manages 23 shopping centres and retail parks across the Czech Republic. It provides extensive and comprehensive consultancy in the area of buying and selling retail assets, renting retail space, representing tenants when entering the Czech market or optimising the store network, as well as the management, marketing and concept design of shopping centres and retail parks. Last but not least, it is a leader in retail market research and customer behaviour. It has been publishing the Shopping Centre Index, which is the only market indicator monitoring the continuous performance of regional shopping centres in the Czech Republic, every year since 2013.