The British Retail Consortium (BRC) recently hosted a webinar discussing their latest findings on how consumers are consuming over the past two years and what factors and values are driving those decisions and thought processes.

How sentiment and priorities are changing.

Over the past two years, the retail scene has shifted dramatically. The nature of the modern retail consumer has completely changed with 45% of UK consumers visiting stores less frequently and 37% of UK consumers now shopping online for products which they would have previously bought in stores. I, myself, am now on first terms with our postman, Brian, who would laugh at the number of parcels I had arrive daily from online shopping, in the first six months of the pandemic - I didn’t leave my home, I needed things for my new-born; Amazon had the answer.

Key Consumer Considerations

The surge in online shopping is undeniable and the pandemic has accelerated development in that area. However, the BRC interestingly found that during the pandemic there were other key factors on consumers’ minds; price and purpose became an important consideration. With 52% of UK consumers thinking more carefully about how they spend their money and 52% being more likely to repair items than replace them, affordability is on everyone’s minds. Home and health centricity is another key factor at the forefront of UK consumers’ minds; with many working from home or being furloughed, there was an opportunity to improve the environment that we were restrained to and I think it’s fair to say that the importance of health, both mental and physical, weighed heavily on everyone’s minds. Finally, sustainability. A more educated and cautious consumer is now expecting companies and retailers to do more, or even maybe, to do everything they could to consider their sustainability policies and promises alongside their Environmental, Social & Governance (ESG) ratings. BRC further found that the values that were making consumers going from Pinning and pining to purchasing were ranked like this; considering the planet first, then affordability, then health, then experience and lastly society.

Opportunity in Challenge

The pandemic has accelerated development in the online retail world. The circumstances of the past two years have been driving innovation and for those who embraced it, they have soared. Take Depop for example; the fashion marketplace app where ‘the next generation come to discover unique items’. Depop has gone from strength to strength. This tallies in with consumers current priorities; sustainability and affordability.

What does this mean for retailers?

There is still considerable uncertainty over whether these new consumer behaviours will stick, however, to ride this wave the takeaway for retailers is this:

1.Tell the story…online

It is not just about having a presence online but telling your captivating and genuine story. Enhancing the digital experience for consumers may mean enticing them to make purchases and with the knowledge that they might be more challenging because those purchases are no longer as spontaneous as they used to be; they are becoming more calculated as consumers are factoring in quality over quantity and ethics not just aesthetics.

Retailers need to look towards the whole experience they offer their consumers; not just a physical one in stores but the digital experience in the round. Delivery, customer service, packaging, marketing, collabs with influencers are all part of the digital package. Branding and goodwill associated with this is crucial for success. Looking at what’s happened recently at LVMH, Louis Vuitton increased their prices by up to 20% at the start of February 2022. As one of the most successful companies in the world, one would envisage this wouldn’t be so much to do with the profit created from the price hike but the brand exclusivity (another interesting consumer dynamic). It’s making the consumer desire and yearn to belong to that world. They are selling their rich history, right the way back to 1854.

2.Anticipate the return to offices

There is an importance in anticipating what kind of consumer is emerging ‘post-pandemic’ (she optimistically writes whilst holding her breath) and retailers must make the changes necessary to adapt. The return to office will have an impact on our high streets. Will consumers who have purchased less during the past two years be tempted when they are able to physically enter a store, or will they have a totally new perspective of their financial goals and how they spend their money and its worth? There is a cost-of-living crisis currently and let’s not get started on inflation.

On the retailer side there are important considerations, is it worth having a physical presence in a shop at all anymore? Should retailers look for more staff? What will leases say about break clauses or Force Majeure events? With a 44% less spend on non-essential items by the consumer, is it worth upping the branding and marketing budget instead of spending that money on a commercial lease?

There is a lot to consider, but it is important to remember one thing, it’s called ‘retail therapy’ for a reason. As humans we are social beings who depend on our senses and social interaction.

3.Green Means Go.

Consumers are vocal and they want to be heard. This passionate generation, as cliché as this is, is the future. The Competitions and Markets Authority (CMA) has published the Green Claims Code to stop companies just jumping on a trend bandwagon by greenwashing and making it appear to be more sustainable when their effort is minimal.

Consumers are demanding change; from purchasing less fast fashion to protesting in the street, from understanding the materials used in products to planting more trees on an app, from the energy used in manufacturing and sourcing of ecological materials to the exciting impact blockchain could have on, not only authenticity of a product, but tracing its entire lifecycle. Sustainability is a win-win for everyone, good for brand and good for the planet. So let’s not just listen. Let’s do and let’s do better quickly, there is no Planet B.

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