As retail subscriptions rise, younger shoppers increasingly bypass brick-and-mortar stores in favor of automated convenience.
April 20, 2024, Saturday — Ecommerce North America
Nearly 40% of millennials are turning to retail subscriptions for their shopping needs. According to PYMNTS Intelligence’s “The Replenish Economy: A Household Supply Deep Dive,” these subscriptions are leading to decreased in-store shopping, particularly among younger consumers. The report, which surveyed over 2,000 consumers and 188 retail subscription merchants, highlights the growing preference for the convenience of automated purchases.
Main Points
- High Adoption Among Millennials: 39% of millennials and 38% of bridge millennials heavily rely on retail subscriptions, compared to lower percentages in older generations .
- Impact on In-Store Shopping: Many subscribers report shopping less frequently in physical stores. Notably, 48% of Amazon Subscribe & Save and 47% of HelloFresh users shop less often in-store, with even higher figures for Stitch Fix (56%) and Chewy’s Goody Box (53%) subscribers .
- Preference for Automation: Approximately one-third of subscribers prefer purchasing most or all items through automated subscriptions, although 15% opt for manual online orders when needed .
- Variation by Subscription Service: While on average only 3.8% of subscribers say their subscriptions completely replace the need for in-store shopping, this figure is significantly higher among certain services, like Chewy’s Goody Box at 11% .
- Future Trends: About 26% of subscribers envision a future where all their shopping is done through subscriptions, although 35% see no change in their in-store shopping habits. This suggests a potential area for growth as consumer preferences continue to evolve .
