Archive for October, 2021

Today’s consumers expect a lot. They want convenience. They want quality. They want value. And increasingly, they also want sustainability.

According to research by Deloitte, shared by Global Banking and Finance, 32% of consumers are very keen to adopt a more sustainable way of living. That means they become more conscious about the brands they are engaging with. If retailers want to stay relevant and keep customers’ attention, they need to take note.

Sustainability is high on the agenda, and not just among consumers. The upcoming UN Climate Change Conference of the Parties (COP26) will further cast the spotlight on sustainability, and will prompt the wider retail industry to demonstrate how its committing to minimising its environmental impact.

It’s no surprise, then, that more retail businesses are focusing on issues relating to the environment, society and governance (ESG). This can be anything from stocking more sustainable products and using eco-friendly packaging, to lending their support to wider, large-scale social movements.

Of course, it’s one thing for retailers to say they’re aligning their business with all things ESG and another to actually do it.

Fortunately, there is mounting pressure from customers, stakeholders, governments and investors who want retailers paying ESG more than just lip service. They want to see proof that businesses are taking these commitments seriously.

Over the years, the combination of fast fashion, single-use plastic and greenhouse gas emissions has not helped retail’s eco-reputation. But while it might have a controversial past, if the industry wants to keep hold of its customers, it needs to clean up its future. 

Take millennials as an example. This generation is a switched-on, eco-conscious bunch and they want retailers to be totally transparent about the work they are doing.

Considering that 73% of consumers say they are happy to pay more for a product if they love the brand, according to a Khoros study, this is an opportunity not to be missed. What’s more, 90% of Gen Zers have made changes to become more sustainable in their daily lives. These are the kinds of statistics retailers ignore at their peril.

Leading the way: ESG in practice

So how can companies start tapping into these opportunities? A good place to start is by focusing on community relations and inclusion initiatives. Looking at some of the big-name retailers, it doesn’t take long to see a pattern start to emerge.

M&S has launched a new sustainability standard for denim which makes use of kinder dyes and consumes less water than its competitors. And John Lewis was the first shop to sign up to HRH the Prince of Wales’s green initiative, the Terra Carta – a set of guidelines designed to help preserve natural capital, address climate change and build a more sustainable future.

And there’s more. Joules has announced an ESG-linked financing facility. Walmart has adopted socially-responsible policies. And Abercrombie & Fitch Co has created a new senior role dedicated to ensuring the company has a positive impact on global communities. 

Across the EU, we are seeing positive changes being made. There’s the Conflict Minerals Regulation, which aims to end forced labour in trading materials, as well as an act introduced in Germany to ensure compliance within supply chains related to human rights and environmental issues. 

All of these steps are giving customers the information and transparency they need to make informed choices about the products they are buying, and in doing so, help stop funding violence, human rights abuses or other crimes. It is also aligning ESG issues to business strategies to ensure these steps are integral to a business’ future.

Making ESG work

According to research by NAVEX Global, despite 82% of companies having set themselves ESG goals, less than half of those are achieving the desired results.

If a retailer is going to make an ESG strategy work for them, business leaders need to deep dive into what ESG really means to their business and the world around them. While they may be aware ESG refers to three business measures, they may not fully appreciate the value each of these measures can add. 

Here’s a look at each one in more detail:

• Environment: Environmental benchmarks focus on how a company responds to environmental issues. These can range from climate change and greenhouse gas emissions to energy efficiency, renewable energy and carbon footprint.
• Society: Social measures set out how a business should respond to complex issues such as data privacy, pay equity, diversity and inclusion, and employee treatment.
• Governance: This addresses corporate concerns such as executive compensation, diversity among senior leaders, and transparency of communication. 

By aligning ESG goals with wider business goals, retailers have a greater chance of long-term success. This is more than just jumping on the bandwagon; making ESG work requires true commitment. After all, the more dedicated a retailer is to ESG, the more appealing that company becomes to the consumer.

Are you ready to make a difference and place ESG at the top of your business agenda? The Delta Group helps retailers and brands find new and creative ways to achieve their sustainability goals. To find out more get in touch with the team today: hello@thedeltagroup.com.

When the nation was told to stay at home in March 2020, the OOH (out of home) sector was inevitably going to suffer. A series of lockdowns and restrictions has left the industry bruised and battered, but as those restrictions ease and life returns to some degree of ‘normality’, OOH is making a comeback – and with real gusto.

In the second quarter of 2021, OOH has enjoyed an impressive resurgence, with year-on-year growth of 277%, reports The Drum. This increase, announced by Outsmart and PwC, marks the highest quarterly performance ever recorded in the sector. After a tricky first quarter, retailers will take some comfort from the news that total revenues between April and June were just shy of £200 million.

The UK Out of Home Revenue report found a rise across all OOH revenues – both digital and traditional – which increased 247% and 339% respectively. These figures illustrate the surge in digital seen over the course of the pandemic; digital now holds a 63% share of overall revenue – an increase from the 53% share it held pre-pandemic.

The expectation is that this recovery will continue into the autumn and winter months. Speaking about the findings, Justin Cochrane, chair of Outsmart said: “Out-of-home’s strongest growth quarter ever […] is great to see. We’ve felt the momentum building and are looking forward to this continuing through the rest of the year.”

Meanwhile, Alistair MacCallum, UK CEO at Kinetic Worldwide (WPP’s specialist OOH agency) talked about the sector’s ongoing agility, explaining the data was “testament to the transformation seen across the industry to make OOH smarter, faster, and more adaptive throughout COVID.”

He continued by highlighting OOH’s “unique ability to publicly and inclusively, reach and engage audiences at scale.”

According to MacCallum: “With the UK returning to ‘real life’ in large numbers, there’s every reason to be hugely optimistic as both classical and digital OOH return to the sustained growth path we were seeing in the years before the pandemic.”

If your business is looking for ways to ride the wave of Q2 through smarter, faster, more adaptive multi-channel marketing, Delta can help. Get in touch, we’d love to hear from you: hello@thedletagroup.co.uk

We all know the impact Covid-19 has had on retail. Lockdowns and social distancing restrictions saw many previously in-store shoppers make the move towards digital shopping options. Demand for grocery delivery and click and collect options surged virtually overnight, as retailers worked hard to give consumers the digital services they required.

These virtual shopping habits are sticking around, but customers are now returning to physical stores, too.

According to data from Forbes, visits to retail, restaurants and entertainment venues have risen 44% since the start of the year.

As customers start venturing back onto high streets and into retail parks, retailers need to adjust their offerings once more to ensure customers keep coming back.

An article on Marketing Dive has three considerations for retailers developing their in-store marketing strategy.

1. When it comes to brands, customers can be fickle

Consumers don’t write shopping lists of brands. They’re looking for baked beans, sliced ham or frozen peas. They may have a brand they like, but research by McKinsey shows their chosen brand may have changed over the past 18 months. It’s that elusive ‘aha-moment’ which gets specific products into a buyer’s shopping basket. A majority (80%) of customers actively look for deals when shopping in-store. On-shelf offers, recipes, or problem-solving information can all work in a marketer’s favour when shoppers are deciding what brand to choose.

2. Pricing is a major priority for consumers

Rising prices on weekly food bills and household items rarely go unnoticed by shoppers. These price fluctuations affect their purchasing decisions. Many consumers feel it is up to retailers and brands to find a way to keep prices low. Many are happy to shop elsewhere or switch to different brands as a way to keep costs down.

The data tells us that 62% of shoppers are members of store loyalty schemes. These programs play a significant part in what they do and don’t buy. Discounts, points and other credit all help sway consumers’ purchasing decisions. Marketers need to use their in-store messaging to promote exclusive savings for loyalty card holders.

3. Recall has a starring role

The in-store experience of today’s shoppers directly influences their purchase decisions. According to one study, 82% of consumers’ purchasing decisions are made when they are inside a store, 62% of shoppers impulse buy while in-store, and 16% of unplanned purchases are driven by in-store promotions.

That’s a lot of customers making a lot of decisions about what to buy while inside physical stores. In-store signage can help influence these decisions, helping retailers drive revenue. A consumer survey found that 69% of shoppers recall seeing in-store product promotions, which in turn led to further browsing and purchasing. Of those customers, 69% went on to browse the particular product and 61% went on to buy it.

Customer engagement starts with digital signage. If you’re looking for ways to influence purchasing decisions, Delta can help. We can help ensure your in-store signage displays the right message at the right time in the right location within the store. Get in touch to find out more about Delta Signage today: hello@thedeltagroup.com