Navigating Transparency and Trust – Keith Watt at Retail Retreat 2023

At Retail Retreat 2023 Andrew caught up with Keith Watt, Partner at KPMG Ireland. They dive into the ongoing KPMG research into consumer behaviour and their concerns with transparency and the evolving demands of consumers in the retail industry. From concerns surrounding discount prices and inflated RRPs to the growing importance of sustainability and the need for effective communication, Keith shed light on the challenges and opportunities facing retailers in an ever-changing landscape.

TLDR: Watch the video below!

Transparency Gap: Trusting the Price Tag

One striking revelation from the interview was the lack of trust among consumers when it comes to discount prices. Only a mere 25% of shoppers trust the price reductions they see in stores. The inflated Recommended Retail Prices (RRPs) further exacerbate the issue, leaving consumers uncertain about the true value of a product. 

Consumer Savviness and Demands:

Consumers are becoming increasingly savvy and discerning. They no longer focus solely on price; instead, they seek a holistic shopping experience that encompasses quality, sustainability, and longevity. Retailers must adapt to these changing expectations by emphasising product value, ethical practices, and environmental responsibility. Meeting these expectations not only satisfies customers but also strengthens brand loyalty and market positioning.

Greenwashing and Communication Gap:

While many retailers are making efforts towards sustainability, there is often a communication gap between their actions and the consumers’ awareness of them. This failure in accurate communication of a brand’s efforts can often be perceived as greenwashing. To bridge this gap, retailers must ensure they more clearly demonstrate their commitment to responsible practices.

Good News: Regulatory Changes on the Horizon:

This communication of your sustainability will become a lot easier. Keith explained how upcoming regulations should address these trust and information gaps in the retail industry. Within the next three to five years, new regulations are expected to enhance transparency and ensure consumers have access to reliable and trustworthy information. This development will provide a framework for retailers to communicate effectively and build consumer confidence in their pricing strategies and sustainable initiatives.

Planning for the Future: Embracing Change

Looking to the future of retail, there’s ongoing transformation within the retail sector. While there is uncertainty around the exact nature of future changes, the experience of the past few years will undoubtedly help retailers navigate any upcoming challenges. Adapting to evolving consumer demands, improving transparency, and fostering trust will be key to thriving in the dynamic retail landscape.

By prioritising effective communication, providing authentic value, and embracing sustainability, retailers can bridge the trust gap and build long-lasting relationships with their customers. As the industry continues to evolve, retailers will need to remain agile and proactive in meeting changing consumer demands and adapting to emerging regulations.

We’ve been conducting our own research into consumer behaviour. A lot of it has been echoed in what KMPG is finding. And we share! We’re providing you with meaningful insights that you can leverage. Keep up to date on Bradley Insights across our social media channels.

Find all of Keith’s knowledge in the video below!