Synchrony (NYSE: SYF), a premier consumer financial services company, today launched its ninth Major Purchase Journey study, revealing that five percent more people are obtaining financing for large purchases compared with two years ago. The study also notes the importance of retail associates in financing decisions and that shoppers 55 and older returned to brick-and-mortar stores in significant numbers, the only demographic to do so in the wake of the COVID-19 pandemic.
Half of survey respondents said that recent price increases have led them to seek financing options and 66 percent agreed that financing makes larger purchases more affordable. Retail associates continue to play an integral role in the shopping experience as 81 percent of respondents said they directly interacted with a salesperson while shopping for most recent purchase. They also play a pivotal role in financing, with 55 percent of respondents researching financing by asking the retail associate; and among those who obtained financing in-store, 51 percent were approached by the associate.
“The results of the Major Purchase Journey study illustrate that rising costs have made financing more appealing for shoppers, particularly when they are looking to buy relatively expensive products such as home improvements, jewelry or electronics,” said Michael Bopp, EVP, Chief Growth Officer, Synchrony. “Opportunities exist for retailers to drive engagement with financing throughout the purchase journey to increase sales conversion.”
The study also notes the trend of older shoppers returning to physical stores. According to the study, this year, 74 percent of shoppers aged 65+ and 71 percent of shoppers aged 55 to 64 purchased in-store, compared with 66 percent and 67 percent, respectively, two years ago. This stands in contrast to shoppers in the 18-to-44 and 45-to-54 age groups, whose in-store purchases remained relatively constant over the past two years.
“Retailers should pay close attention to…
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