Proximity as a success factor in retail

A lack of fun and meaning in shopping

Going shopping is dead, as it is no longer a pleasure – something we have already revealed in our eponymous GDI study "Going Shopping is Dead". The majority of people just want to get their shopping done quickly and efficiently; Very few customers nowadays like to take a pleasurable stroll round the shelves. The reasons for this include time stress, consumer fatigue and the desire for more meaning in their day-to-day lives. Little has changed since the report was published.
Some 91% of people are dissatisfied with the bricks-and-mortar shopping experience, while 76% also find online shopping boring or frustrating. A recent international study of 20,000 consumers in 26 countries confirms the trend: retailers stand at an emotional impasse.

Solutions: Faster, closer, more attractive and more practical

The four Ps of sustainable commerce provide a basis on which we can build: Promptness, Proximity, Pleasure and Purpose. They are to be seen as a strategic response to the lack of fun and meaning in shopping - with the aim of bringing greater joy and meaning back into the shopping trip. They address both the quantitative dimension (promptness = time savings and smooth processes) and the qualitative dimension (pleasure and purpose = enriching the shopping experience with fun or meaningful elements).

Proximity in particular has become increasingly relevant, as it can combine both dimensions: short distances for greater convenience (quantitative) and genuine human connection (qualitative) in an increasingly isolated world that revolves around technology.

Physical proximity determines purchasing behaviour

Recent analyses by the GDI show that people are more likely to shop at locations closer to their home, especially if they also work there. If there isn't a shop within easy reach, we order online. With every kilometre of distance between a person and their nearest shop, the likelihood of shopping online instead of in-store increases. This is highlighted by a comprehensive analysis commissioned by the National Bureau of Economic ResearchWhere there was a distance of 1.6 kilometres to the nearest shop, 2% opted for online shopping. With a distance of 32 kilometres, the figure rose massively to 70%.

It is therefore hardly surprising that proximity to shopping facilities is one of the most important location factors when looking for a property – often ahead of amenities such as gastronomy, culture and schools. Nor does it shock us that the opening of a new shop can significantly increase the value of a property. For many people, living close to retail outlets means a greater quality of life and more independence.

A supermarket within walking distance can also mean preserving your own dignity, as you are able to look after yourself.

Two older ladies summarised this significance in the Süddeutschen Zeitung newspaper: "Many people don't understand that a supermarket means freedom. People think a supermarket is just a transactional place of consumption. But a supermarket within walking distance can also mean preserving your own dignity, as you are able to look after yourself."

Cities and retail: smaller and closer

This development is not only changing customer behaviour, but also the cityscape. The model of the 15-minute city —in which key amenities such as supermarkets, pharmacies and leisure facilities can be reached on foot or by bike—is becoming the blueprint for contemporary urban planning. Retail companies are following this trend with new store formats: smaller, compact stores in neighbourhoods or on university campuses are replacing large outlets on greenfield sites. Carrefour, Decathlon, Target, Macy's and IKEA have already made the necessary changes. Swiss providers such as Valora are also focusing on proximity, with 13 sales formats and 2,800 points of sale at high-frequency locations such as railway stations, petrol stations and airports.

At the same time, the logistics infrastructure in urban areas is booming. Investments in warehouse space now exceed those in traditional retail properties. Companies are relying on micro-hubs in the neighbourhood, for example by converting car parks or vacant properties. Autonomous shops and sales boxes—such as those from Tante Enso, Teo or Holabox—are also allowing local customers to stock up without having to travel far and are closing supply gaps in some areas.

Human closeness instead of technological frustration

Despite the rapid pace of digitalisation, one thing remains unchanged: the desire for genuine human contact. Some 64% of consumers say that technology cannot replace personal advice given by a human in a store and only 13% would delegate their entire shopping to an AI. This is backed up by the recently published GDI study "Smart & Menschlich". There is underestimated potential here, particularly in bricks-and-mortar retail. While many instances in which AI is used are met with scepticism—40% of people have said they would boycott shops that didn't have any staff—personal service is still valued. The solution is not an "either/or" scenario. When AI optimises processes in the background, this provides room for genuine encounters in the foreground. In this way, technology does not replace interaction, but enables human closeness – and thus becomes the key to establishing trust, loyalty and acceptance in the digital age.

Conclusion: Proximity counts – not just in kilometres, but in hearts and minds. Retail becomes fun and meaningful again in places where people feel seen, understood and connected. It's not just about efficiency or convenience, but about resonance and relevance in our day-to-day lives. Proximity creates trust, and trust is the new currency in the age of digital distance. Those who recognise the value of this are not only shaping the retail of the future, but also the quality of life of today. 

International thought leaders and industry professionals will discuss how companies can utilise this potential at the 75th International Retail Summit on 10 and 11 September at the GDI in Rüschlikon.