Shoppers more likely to shop local if a loyalty scheme is on offer
Posted on in Business News, Cycles News, Creative News, Outdoor News
New research from Groupon reveals the most pressing issues facing local retailers.
One of the most revealing statistics is that four in ten (40%) independent retailers say they don't have a dedicated website.
The research, which questioned 2,010 shoppers and 1,000 local business decision makers nationwide, revealed that independent retailers' biggest challenges are competing with big chain retailers (40%), retaining local customers (38%), and competing with online/app/mobile commerce (35%). Despite these challenges retailers are doing little to try and overcome these challenges, with three fifths (57%) of all independent retailers saying they've never had a loyalty scheme and don't plan to implement one; and over a quarter (26%) admit they've no strategy in place for attracting new customers.
Currently, shoppers are still spending significantly more money at large chains rather than local stores on average each week - £42.70 vs. £10.60 respectively. But all is not lost as consumers say they do want to support local businesses, with almost half (47%) saying it's important for them to shop locally. Consumers in Northern Ireland (65%) and Yorkshire and Humberside (58%) are the keenest to do so.
"Over a third of shoppers say they would be more likely to shop local if a loyalty scheme was on offer "
Overall, shoppers say they are passionate about their local independent businesses because they like their proximity to their home (43%), the way they make their community unique (74%) and want to improve their local economy (47%). Over a third (41%) of shoppers say they would be more likely to shop local if a loyalty scheme was on offer, but that currently many local businesses don't provide them (14%) or promotional discounts (18%).
Jon Wilson, MD at Groupon UK, says: "Over three quarters of Brits support their local businesses as it makes their community unique; and in an age of lookalike high streets, it's more important than ever for the small businesses up and down the country to capitalise on this. In light of the potential post-Brexit economic shift; it's heartening to know that British shoppers have a firm desire to support local businesses."
"Our research suggests that while some local businesses are proactively exploring how to capitalise on these opportunities, an alarmingly large proportion aren't."
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