Tag Archives: Market Research

Are millennials ignoring the environmental impact of online shopping?

Retail Times Blog

As high street retail continues to deplete and more people shop online, increasing to 19% of all retail sales in December 2019*, a new report by retail marketing experts Gekko shows there’s increasing consumer concern about the environmental and societal impact of this transition and a marked difference in attitude depending on age.

The younger generation may tout their eco credentials but they are more easily lured into wasteful spending and shopping online with over half (53%) of 18-24 and 46% of 25-34 year olds admitting to being tempted into buying things they don’t need online, with just 19% of canny 55+ year olds saying the same.

More than five times as many 18-24 as 55+ year olds admitted to regularly buying goods online that they regret, so return them – 17% versus just 3%.  And 45% of 18-24 and 42% of 25-34 year olds also admitted to being wasteful buying items they didn’t want and failing to return them, compared to only 17% of older consumers.

Surprisingly and despite the high profile of Extinction Rebellion and Greta Thunberg, younger shoppers make less conscious choices than some may think about the environmental impact of online shopping versus older consumers.  In general, 73% of consumers are concerned about excess packaging associated with online purchase and deliveries and 74% are worried about the amount of single use plastic in packaging.

However, just over a third (38%) of 18-24 and 33% of 24-35 year olds are unconcerned about the use of excessive packaging. This compares to 19% of over 55 year olds. And despite it being such a huge national issue and talking point over the last year, 34% of 18-24 year olds and 31% of 24-35 year olds aren’t concerned about single use plastic, versus 19% of over 55 year olds.

Even the gig economy does not seem to be a problem for the generation arguably most likely to be more exploited by it, with 50% of 18 to 24 years olds unconcerned about online shopping increasing it versus 33% of 55+ year olds.  And 44% of 18-24 year olds don’t fret about the impact on the High Street and local economy of online shopping, versus 23% of 55+ year olds.

According to Daniel Todaro, MD of Gekko: “Younger generations spend more time online and are therefore less inclined to resist that impulse buy. They are far more likely to buy things they regret, order more than one size, items they never intend to keep and send the goods back, but this convenience has an environmental impact.

“The future of the High Street is a vital societal component and offers a more ethical approach to shopping. If you can try before you buy there’s less transport, packaging and waste without the need to order multiple sizes or colours of the same item. The High Street sustains the heart of a community, no shops means no point heading to the High Street – there’s only so much coffee a community can afford or want to drink.”

To read the full article please visit Retail Times.

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Could collaborative retail save our high streets? Independent retailers should merge to avoid closure

The Drum Blog

The Collaborative Retail report from Gekko looks at how independent retailers can think more innovately to avoid struggling on the high street.

The survey has revealed that independent retailers should think more creatively and work together to avoid going bust.

The report interviewed 2,000 UK adults, with nearly three quarters (73%) admitting that they thought independent retailers should collaborate to come up with innovate ideas like sharing shop space and marketing costs ad cutting down on their individual overheads.

Independent shoe and clothing retailers were among the most popular types of shops for collaborations (favoured by 71% of consumers), followed by book shops and cafes (68%) and bakeries and greengrocers (65%).

Reasons for these collaborations included consumers wanting to support the high street (64%), wanting to support local businesses (63%), by choice (56%), convenience (52%) and an enhanced shopping experience (48%).

Alongside these collaborations, nearly 90% of consumers thought it was important that large national retail brands renovated their store designs and opened up concepts in new regions rather than just in major high street destinations. Over fifty per cent (56%) said they would visit their local high street more if brands did this.

Nearly three quarters (70%) of consumers said they were concerned about the impact of online sales on the high street and the local economy, but felt that the high street still had a major role to play such as it meant consumers could try items before they buy (62%), browse leisurely (55%), buy an item and take it home immediately (51%) and visit multiple shops in one go (40%).

Daniel Todaro, MD at Gekko, said: “We cannot just sit back and watch our high streets continue to degrade. Our research clearly shows that UK consumers are worried about the future of the high street and the impact its demise will have on their communities.

“They would love to see more independent retail collaborations and believe this is a very exciting way to inject life back into the high street and it does make sense. However, this approach to retail requires new and imaginative ideas from Government that support the legal and financial infrastructure of such initiatives. Our high streets do have a lot to offer so Government and retailers need to work together to make it an enticing proposition and lure people back.”

To read the full article please visit The Drum.

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Click and regret: Brits wasting over half a billion pounds every year online on unwanted goods

The Drum Blog

A new report – ‘Click and Regret’ – from marketing agency Gekko has revealed the shocking waste now involved with online shopping. According to the survey, consumers are wasting £641m online every year buying goods they don’t want and failing to return them.

The survey of 2,000 UK adults conducted by One Poll on behalf of Gekko reveals that 27% of respondents (equating to 12.4m UK adults) order goods online they regret buying, but fail to return. The average amount wasted every year is £51.90 per person, equating to £641m overall. Nearly a third of UK adults (31%) also confess to being lured into buying items they don’t want or need, and 70% regularly regret buying things online so send them back.  

Despite people being seemingly unable to resist the temptation of spending money online, nearly half felt that the ease of shopping online fuels extensive shopping habits and 43% said they also spend more money online than they originally intended.

Although internet shopping is meant to be time efficient, a whopping 65% said they spent more time shopping online than they expected because. Additionally, 69% felt that there’s too much choice, while 54% want to hunt for the best prices, and 34% of respondents feel compelled to shop around .

However, respondents also claim to be concerned about the environmental impact of online shopping with 75% worried about the excessive use of packaging and single use plastics. Meanwhile 70% said they were concerned about the societal impact on the high street and local economy of increasing online shopping.

Daniel Todaro, MD, Gekko, comments: “It’s clear from this research that online shopping can be a false economy. Although in theory we can return the goods we buy, many of us are too busy to bother, so what starts as convenient soon becomes costly and inconvenient.

“This results in unwanted goods cluttering cupboards, gathering dust in wardrobes or heading for landfill at an alarming rate. With our high street suffering and many people still enjoying its benefits such as try before you buy, excellent customer service and immediate purchasing experience, people should be more mindful before they click and get out and support their local businesses, help the environment and their pockets.”

To read the full article please visit The Drum.

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Brits want ‘service over sci-fi’ from retailers

The Drum Blog

A study published today by marketing agency Gekko – ‘Service not Sci-fi’ – reveals that UK shoppers would rather deal with real people over robots or artificial intelligence when it comes to shopping.

The study finds that 81% of UK shoppers claim the personal touch has disappeared from retail customer service in modern Britain, with almost a third (32%) blaming an over reliance on technology for this decline. Half of those polled believe that companies in the UK are using technology to save money, rather than improve customer experience.

Only 30% said they would like to see ‘smart pricing’ initiatives adopted by retailers, where prices change in real time depending on demand, 22% smart mirrors that show a 360 view of themselves, 16% a virtual reality changing room, 14% augmented reality to help visualise products in the home and only 9% in favour of a talking robot assistant.

When it comes to buying online, 43% of UK shoppers have had their screen freeze while trying to make a purchase. When asked what makes a great bricks-and-mortar shopping experience, 49% of those polled said it was down to having good staff on the shop floor, staff that know the products and staff that go the extra mile (47%). Coupled with this, 61% of the nation would prefer to deal face-to-face when complaining, 59% when enquiring or trying to find out more about a product and 73% when getting a refund.

A third of Brits say that the personal touch is more likely to make a repeat purchase, and more than a fifth (22%) claim they always spend more money in a shop if they are served by a good assistant, incrementally adding to sales. Over a third (34%) of shoppers stated that a poor experience has driven them to buy from another retailer.

The research also highlights the impact of the decline of the local shop, with a quarter of Brits saying they miss shopping somewhere where people recognise them, 16% confessing they preferred the days when they could talk through a purchase with a someone in-store, and a quarter saying online shopping is less fun than buying something in a real shop. The convenience of a store’s location is also stated as important by 43% of respondents which means that as retailers consolidate their estates, many will notice the effects, further emphasising the need to carefully consider the experience being provided in-store and the staff needed to deliver the experience.

According to the research we waste almost an hour and a half a month – which is 17 hours a year, the equivalent of more than two days at work – interacting with automated technology, only for a human to have to step in and help. Bug bears include getting someone to rectify a problem with the self-service checkout, and ringing customer services and dealing with a recorded voice, only to repeat the details to the person you end up talking to.

Little wonder, then, that 51% of Brits have slammed the phone down during an automated call, as the system didn’t recognise what they were saying. And 47% of shoppers have experienced self-service checkout failure that’s had to be rectified by a shop assistant.

In fact, more than three quarters (77%) of UK shoppers admit they’d much rather use a checkout with a person on it, rather than taking the self-service option. More than 4 in ten (43%) British shoppers would rather speak to a person than an automated system when making a phone enquiry, with almost a quarter (23%) ending up having to complain on social media when their query hasn’t been responded to via the automated service.

Daniel Todaro, managing director of Gekko said: “Everyone is talking about technology and innovation within retail, but our research clearly shows that what consumers really want is the human touch. With traditional retail under more pressure than ever and an astonishing 81% of people feeling that the personal touch has disappeared from shopping, businesses need to focus on the customer experience in these tough trading times to help keep the high street alive.”

The survey was conducted by Ginger Comms in December 2018, speaking to a sample of 1,500 shoppers aged 18+ and representative of the UK population.

To read the full article visit The Drum.

To find out more about our ‘Service not Sci-fi’ research please visit our Research page.

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