Page 42 - HW February 2020

retail edge
Consumers suspicious
OF RETAILERS’ OPTIONS
TWO RECENT PIECES of research confirm what we all already basically feel – that, to win and retain customers, the modern retailer not only has to be as good as the online alternative, but also ethical and transparent, to boot.
Take the issue of bricks & mortar’s options towards becoming a more efficient place to shop... From the UK, Capgemini (www. capgemini.com) says automation can save the day for bricks & mortar retailers faced with the sheer speed and efficiency of pureplayers.
Trouble is, says the report, Smart Stores – Rebooting the retail store through in-store automation, there’s a “significant dissonance in perception” around the issue of automation between retailers and consumers ...
While 66% of consumers believe automation can solve challenges such as long checkout lines and 46% are willing
to shift their online purchase from a pureplayer to a bricks
& mortar retailer using automation technology, only 40% of retailers polled considered automation a “strategic imperative”.
But wait, there’s more “significant dissonance” between the consumer and the retailer’s points of view:
• 63%ofconsumerspolledfeltretailerswereimplementing
automation technologies to cut costs, rather than improve
their experience.
• 43%ofconsumersoverallsaidtheyfeellikean“unpaidsales
assistant” when they use the self-checkout option.
• Worstofall,59%ofconsumerswouldavoidastoreifitwas
using facial recognition.
Much of the above is about trust, and could be addressed, if not totally solved, by the retailer adopting a more transparent outlook and explaining what they’re looking to achieve by using technology.
ARE YOU BEING “RESPONSIBLE”?
The need for transparency in retailing is further underlined by new research from Accenture New Zealand (www.accenture. com) of 500 New Zealanders.
The research indicates that, while customer service (71%), in-store experience (67%), and range of products (65%) remain top of mind for Kiwi consumers, it also found that Kiwis are more prepared to buy from retailers which can show they’re responsible and are addressing wider social issues through their business practices than those that aren’t.
Indeed half of the Kiwis polled wanted retailers to be more transparent on the steps they’re taking to reduce their environmental impact, while 43% preferred retailers that demonstrate social awareness.
Over half (58%) also wanted to see the origin of materials and ingredients while 54% were looking for clear labelling of how sustainable or ethical the products they’re considering are.
In terms of other tangible steps towards responsibility, 64% of the Kiwis polled would like retailers to offer incentives for recycling unwanted items, while 61% would like to be able to purchasegoodsinquantitiesthatenabledthemtoreducewaste and were also packaging-free.
Accenture Interactive New Zealand Managing Director, Ben Morgan,saysconsumersare“lookingtoretailerstoprovide the kind of information which will help them make responsible purchasingdecisionsandreducenegativeenvironmentaland social impact from retail.
“There’s a clear appetite amongst Kiwis to take ownership of these challenges and be part of the solution; at the same time, they’re also asking for help from retailers and rewarding those that provide it.”
40 NZHJ | FEBRUARY 2020
MORE AT www.hardwarejournal.co.nz