Dive Brief:

• Package Concierge, an automated parcel locker provider, released a survey of 583 Generation Z shoppers that found 58% of them have used Buy Online Pickup In-Store for a purchase, and 60% said it was a factor in deciding where to shop.
• For Gen Z, the brick-and-mortar retail experience still matters. Of those surveyed, 60% reported visiting a mall within the last week, and 90% said they made an in-store purchase while they were there.
• "The survey validates what we’ve known to be true — shopping behaviors are evolving and consumers want options that include both online and in-store experiences," Georgianna Oliver, the founder of Package Concierge, said in a press release. "As retailers work to market to the coveted Generation Z demographic, they must [employ] modern methods to attract younger shoppers."

Dive Insight:

As e-commerce and omnichannel delivery options have more people shopping online, Package Concierge's data suggests stores that offer BOPIS options can capture additional revenue. For some stores, the strategy pays for itself. According to the ETP Group, for online shoppers the browsing to sale conversion rate is only 3%, but for in-store consumers the rate can jump to 60% depending on the store.

A well-executed BOPIS strategy capitalizes on "the instant gratification factor" among younger consumers, according to the report. While online retailers offer shipping times as fast as a single day, BOPIS can allow shoppers to pick up an item in a manner of hours. Of those surveyed, four in 10 said they liked having an in-store pickup option to have their purchase ready before they arrived at the store, and 30% liked BOPIS because they are last-minute shoppers.

A variety of retailers are experimenting with BOPIS. Kohl's allows customers to pick up in the store items that were purchased online. Nordstrom offers BOPIS and buy online ship to store (BOSS) options to its customers, and Nike has created a new NikeLive store concept offering BOPIS options to its NikePlus members.

Businesses need to ensure they have a process in place to cater to significant wait-time sensitivity when implementing a BOPIS strategy, the report cautions. While 32% of survey respondents were willing to wait one to two days to receive their purchase, 24% only wanted to wait a few hours and 8% said they were unwilling to wait more than one hour to pick up their purchases.