OPINION


November 2019 ertonline.co.uk


Daniel Todaro l Managing Director, Gekko


Click & Regret - why we shouldn’t put all our eggs in the online basket


There’s a cacophony of deafening alarm bells surrounding retail, the early warning system for the raft of missiles aimed at disrupting the heart of our communities – the high street. But disruption does not mean dystopia if it’s used to improve and enhance.


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nline shopping is growing each year, but 82 per cent of shopping is still done in physical retail – which, as we know it, is changing. It’s going through a process of evolution. What is critical during this time is ensuring that we put online shopping and all the associated commentary in perspective. A recent study we conducted among 2,000 UK adults – Click & Regret – highlighted that online shopping doesn’t always offer the most convenient and cost effective choice for shoppers. It’s just one part of the picture and has its own downfalls. The research revealed that £641 million is the astonishing figure consumers are wasting online every year, buying goods they don’t want which they subsequently fail to return. Over half of UK adults said they felt that the ease of shopping online fuels extensive shopping habits. There’s something about popping goods in an online basket that feels intangible. It’s as if the money you’re spending when you ‘click to buy’ doesn’t belong to you, a very different emotional connection compared to the physical action of handing over your cash, credit or debit card while you’re in a shop.


Coupled with this, nearly a third of UK shoppers confessed to being lured into buying items online they don’t want or need and 70 per cent regularly regret buying things online so send them back. Over 40 per cent said they also spend more money online than they originally intended, with 38 per cent stating it’s because they often buy goods they didn’t expect. Interestingly, the study also found that although


internet shopping is meant to be time efficient, 65 per cent of shoppers said they spent more time shopping online than they expected because there’s too much choice 69 per cent, they hunt for the best prices 54 per cent and feel compelled to shop around 34 per cent. So, while this is great for retailers, is it great for consumers? It was recently reported in The Times that Amazon is discreetly building a team of British property experts amid speculation that it will


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£641 million is the astonishing fi gure consumers are wasting online every year, buying goods they don’t want which they subsequently fail to return. Over half of UK adults said they felt that the ease of shopping online fuels extensive shopping habits.


expand its physical presence. So if the most successful online business, whose Amazon Go and Whole Foods brands are examples of physical retail, believes in bricks and mortar as part of its commercial strategy, then why don’t we or our Government?


It becomes too easy to believe the self-fulfilling


prophecy that online shopping is perfect, and the high street is a busted flush. We all know that the high street plays an important role in society and 70 per cent of the shoppers we asked said they were concerned about the impact online shopping will have on the local economy and community. Realistically, in the case of ‘considered’ purchases such as consumer electronics and IT, physical retail is the only place that offers consumers an experience that reflects the significance of the budget a consumer may wish to spend. Presence in-store, as measured by Kantar, does generate high impact when experienced, providing the last


chance to stand out against competitors and is an important driver of purchasing decisions. Combine this with a clear environmental policy, articulate staff in a welcoming environment and the experience is heightened, enabling a more conducive manner to close a sale and perhaps increasing average basket values through up- selling.


What is clear from this research is 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 convenience soon becomes costly and inconvenient. People should be more mindful before they click. Our high streets aren’t going away, but the


transformation of them is taking too long and the Government doesn’t appear to be fully backing this horse – a decision they may come to regret.


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