Consumer Confidence in Brick-and-Mortar Retailers

 Consumer sentiment can be a powerful indicator of economic trends, particularly as the economy continues to flag due to the COVID-19 pandemic. The walk-through marketing leader, Zenreach, released data showing consumer sentiment throughout the pandemic, indicating that as another wave of COVID-19 sweeps the nation, consumer optimism is on a downward trend. 

For instance, a look at the initial impact of the pandemic from march shows that negative consumer sentiment and its correlation to actual walk-through rates. Early tentative steps toward walk-through rate recovery is related to consumer optimism. 

The data, which goes through November 12, 2020, indicates somewhat lowered level of consumer optimism at the moment, than earlier in this month indicating that consumer optimism is on the decline as the holiday shopping period begins. 

I had a chance to do an interview to learn more.

Why is there a strong link between consumer sentiment and brick-and-mortar store health?

 

Looking at the available metrics, it’s clear that the coronavirus pandemic is as severe as it’s ever been. The country recently surpassed 11.6 million cases and 250,000 confirmed deaths since the COVID-19 outbreak began. In just the past week, the number of daily cases, deaths, and hospitalizations have risen significantly, as did test positivity rates among reported tests.

 

Understandably, a large portion of the population has serious health and safety concerns about patronizing brick-and-mortar businesses in this environment. Until we have a comprehensive, effective strategy to tamp down the number of cases, we can expect to see depressed foot traffic figures across the nation. Consumer fears and reduced in-store walk-ins go hand in hand.

How can consumers support their favorite retailers, especially small businesses, even as they might be concerned about their health?

 

Ordering items for delivery or pick-up is a great way for consumers to support their favorite businesses in this climate. Buying gift cards or certificates—either for yourself or for others as a gift—is another way to help.

How can initiatives like contactless payment help increase consumer confidence in stores' health and safety practices?

 

With consumers so clearly on edge, it is imperative that merchants lean in to enhanced safety measures—for the sake of both their customers and their own employees.

 

Contactless solutions in particular have become quite popular this year. According to one study, 53% of consumers have used a mobile contactless payment option for the first time since the pandemic began, and an astounding 85% of consumers say that it is important that a retailer offer the choice for contactless payment.

 

There’s also evidence showing that stores which haven’t implemented some sort of contactless payment solution are at a competitive disadvantage. The same study cited above indicated that 28% of shoppers will actively avoid a retailer that doesn’t offer a contactless payment option and instead choose one that does. 

 

It’s truly amazing that technology has evolved to the point where customers are able to have a contactless retail experience at a brick-and-mortar establishment. Contactless solutions—for payments, price checks, and even in-store assistance—should go a long way toward alleviating consumer concerns. 

What can retailers do to be responsive to consumers' concerns?

 

In addition to providing customers with contactless options, retailers should also implement enhanced health and sanitation measures—practices like limiting store capacity to encourage social distancing, frequently disinfecting pens and surfaces, and implementing mask mandates. After all, the more businesses that adopt these changes, the more consumers will come to expect them and begin identifying these measures as standards.