While local sales slow, online sales rise

In Trinidad and Tobago (TT), a significant shift is occurring in consumer behaviour as we witness local retail sales waning while online sales continue to climb. As a digital and e-commerce strategist, it's imperative to understand the digital factors driving this change; I will leave the finances part for the financial guys.

Increasingly savvy consumers are attracted to the convenience, variety, and cost savings offered by online shopping. This pivot is not just a reaction to market trends but also a commentary on the state of local commerce, which is grappling with challenges such as pricing, selection, and customer service. Businesses must adapt to this digital migration or risk obsolescence.

The retail sector is at a crossroads, where traditional shopping methods are being questioned. Local pricing is often found to be uncompetitive when compared with international online platforms, which offer not only lower prices but also a wider array of discounts and deals. Quality and selection in local markets also fall short when compared to the vast inventories available through online shopping.

Moreover, the quality of customer service in physical stores is frequently criticised, contrasting sharply with the personalised and responsive service provided by e-commerce sites. Adding to the local sector's woes is its relatively weak online presence, with few stores offering any form of online shopping options and delivery services. This gap has left a void that international e-commerce has been only too happy to fill, making it a convenient and attractive option for TT's consumers.

In Trinidad, the convenience of online shopping is propelled not just by consumer preference but by a desire to avoid the country's notorious traffic congestion. The traditional brick-and-mortar store hours, aligning with the typical 9-5 workday, present a challenge for the working population who must either arrive late or leave work early to shop.

This inconvenience is compounded by the lack of e-commerce platforms among local businesses, limiting consumers' ability to shop outside of business hours. Online shopping's 24/7 availability caters to the modern consumer, allowing for shopping in the early hours, during lunch, or late at night, offering a flexibility that local businesses have yet to match.

The web traffic data from Trinbago shoppers to major online retailers and Skybox services over the last 30 days is telling a clear story:

• Amazon: 700,000 visits

• Shein: 120,000 visits

• Walmart: 60,000 visits

• eBay: 34,000 visits

• Fashion Nova: 26,000 visits

• Web Source (a Skybox company): 384,000 visits

• CSF Couriers (another Skybox company): 265,000 visits

These figures indicate a significant shift in consumer behaviour, with Trinbago shoppers actively seeking international platforms for their purchasing needs. While local businesses report a downturn, the burgeoning site traffic to shopping sites and Skybox companies underlines a different narrative: Trinis are not necessarily spending less but are redirecting their shopping habits towards online purchases where variety, convenience, and often pricing outmatch local offerings.

The digital footprint of a business is a key determinant of its accessibility and success. According to Google, a staggering 63 per cent of all shopping transactions start with an online search, and a significant majority of customers visit physical stores within a week of their initial online discovery. The implication is clear: if a business is invisible on Google or social media, it's virtually non-existent to the modern consumer.

Now, how could we forget all the customer service issues? When local businesses are searched and found online, the customer experience often falls short, with delayed or unresponsive communication. This frustration steers consumers towards the convenience and efficiency of online shopping, where queries are met with immediate attention, driving the shift from local to digital commerce in Trinidad.

To enhance their competitiveness in the digital age, local businesses in Trinidad and Tobago should consider the following strategies:

• Develop an e-commerce ready website: Create or revamp websites to facilitate online shopping. Customers like to shop at their convenience.

• Join marketplace apps: Leverage platforms like DropHub or Uneque for broader reach. They also handle payments and deliveries across Trinidad.

• Optimise digital presence: Improve search engine and social media visibility to ensure products and services are easily found.

• Partner with courier services: Collaborate with delivery companies for efficient end-to-end delivery to customers' doorsteps.

• Add more value: Find innovative ways to offer more value, particularly if competing on price is challenging due to higher local product costs.

The future of shopping in TT is shaping up to be increasingly digital. Trends from Skybox companies indicate a growing preference for online shopping, a movement that seems likely to continue. Local businesses must adapt to this shift in consumer behavior, integrating digital strategies to remain relevant. The balance between local and online shopping will hinge on how well local businesses can enhance their digital presence and offer unique value to consumers.

Keron Rose is a digital strategist who works with businesses to build their digital presence and monetise their platforms. Learn more at KeronRose.com or listen to the Digipreneur FM podcast on Apple podcast, Spotify, or Google podcasts.