New research from Barclays shows the importance of data to the UK retail industry, as nine in 10 retailers (93%) predict that effective data capture and use will be important to the future success of their businesses.

However, many people still need convincing, with nearly half of consumers (46%) not fully comfortable sharing their information – and only 19% completely comfortable with this prospect.

Fortunately for UK retailers, there is a route ahead. The majority (61%) of those who say they are not comfortable would consider sharing their data for an incentive. Barclays research has shown loyalty schemes are the most popular way to reward consumers, with 83% of shoppers using between one and four memberships.

Karen Johnson, Head of Retail and Wholesale at Barclays Corporate Banking, said:

“Retailers know how important data is to the industry as well as the huge range of benefits it could bring to their customers, but persuading consumers that this is the best route ahead remains a challenge. Retailers need to tailor what they offer so that people experience the benefits of data sharing on a regular basis, with end-to-end personalisation, exclusive rewards, and smoother customer experiences. If they can do this consistently, consumers will be happy to join them as the industry moves forward.”

Other key findings from Barclays research include:

• 85% of retailers are confident about growth over the next year compared to the last 12 months, despite the cost-of-living crisis and rising interest rates
• 84% of non-grocery and 86% of grocery shoppers say rising prices have influenced their spending habits with many looking for deals and shopping around
• A digital presence is more important than ever for retailers as 70% of consumers use the internet to inform how they shop
• 22% of retailers are worried about the increased cost of borrowing but still plan to invest across their business functions

 

Barclays report, The New Retail Reality, is based on bespoke market research conducted by Censuswide among businesses and consumers across the UK. The consumer sample of 2,010 general consumers (UK) was collected between 24 – 26 May 2023. The business sample of 601 senior decision-makers in the Retail and Wholesale industry, working in businesses with turnover of £6.5m+, was collected between 18 – 24 May 2023. Censuswide abides by and employs members of the Market Research Society and follows the MRS code of conduct which is based on the ESOMAR principles.