The holiday season is fast approaching, and retailers are in a panic. With shopper dissatisfaction on the rise and pressure mounting to deliver, many are scrambling to fix their holiday strategy before it’s too late.
From out-of-stock shelves to frustrated customers, it’s a recipe for disaster—unless retailers act fast. So, what can they do to turn things around? Here’s how smart retailers can fix the mess and win back shoppers before the holiday rush takes over.
To exceed shopper expectations, drive profitability, and empower engaged associates, retailers must focus on several key areas:
- Get to Know Your Customers
Retailers who understand their customers’ personal preferences have a distinct advantage. According to research, 75% of shoppers globally (77% in APAC) are more likely to try and buy products when associates are familiar with their needs and can make personalized recommendations. Building relationships with customers by remembering their preferences and offering tailored suggestions can create a more satisfying shopping experience, turning one-time buyers into loyal repeat customers. - Simplify the Shopping Experience
Shoppers expect convenience, especially when it comes to finding, paying for, and returning items. A streamlined, user-friendly process is essential to retaining customers. Shoppers want associates to be available and ready to assist, whether it’s helping them find items on crowded shelves or ensuring they can easily return or exchange products. By offering an efficient and hassle-free experience, retailers can stand out from the competition and create a smoother shopping journey. - Keep Shelves Stocked
Even though fewer shoppers are complaining about out-of-stock items, this remains the top reason why over half of shoppers (57% globally, 49% in APAC) leave a store empty-handed. In addition, many associates (86% globally and in APAC) are now struggling with real-time out-of-stock tracking. Retailers need to invest in smarter inventory management systems that allow them to keep shelves stocked, prevent frustrating stock-outs, and fulfill customer demands promptly. This will not only improve customer satisfaction but also boost sales and reduce lost opportunities. - Balance Loss Prevention and Shopper Experience
While safety concerns, including theft and crime, are at the forefront for many shoppers (71% globally, 65% in APAC), retailers must strike a delicate balance between protecting their stores and maintaining a welcoming, friendly atmosphere. Overemphasizing loss prevention can create an uncomfortable shopping environment, leading to customer frustration. Shoppers are also concerned that retailers may raise prices to cover increased theft costs, with 77% of global shoppers (68% in APAC) expressing concern about price hikes. Retailers must focus on protecting their stores without alienating customers or passing the burden of increased costs onto them. - Avoid Passing Operational Costs onto Customers
With inflation pushing prices higher, consumers are more price-sensitive than ever. A significant majority (71% to 86% of those surveyed) are worried that rising costs will affect both everyday essentials and big-ticket items. As shoppers tighten their belts, retailers must find ways to absorb costs without passing them along to customers. This can include improving operational efficiencies, leveraging technology to streamline processes, and sourcing products in a way that keeps prices manageable. - Empower Associates with Technology
Retail employees are the backbone of the retail experience, but most associates (85% globally, 82% in APAC) feel their stores need more staff to meet the increasing demands of customers. Retailers who invest in technology and mobile devices can improve efficiency and help associates provide better customer service. Stores that incorporate technology not only attract and retain more skilled associates, but they also enhance the shopping experience. When associates have access to the latest tools, they can assist customers faster, answer questions more effectively, and ultimately improve customer satisfaction.
Declining shopper satisfaction
Although consumers are still generally satisfied with their shopping experience and global consumer spending is holding steady, fewer shoppers overall are satisfied with their shopping experiences this year.
The data from Zebra technology shows shoppers are not the only ones who are worried about the impact of theft and crime on the in-store experience. The majority of retail associates (84% globally, 72% in APAC) are concerned about the lack of technology deployed to spot safety threats or criminal activity.
With most retailers (78% globally, 80% in APAC) under high pressure to minimise theft and loss, they are now investing in technology tools that can help frontline workers and those watching operations from behind the scenes. Artificial intelligence (AI) technologies are currently viewed as the most helpful with loss prevention, closely followed by cameras, sensors, and RFID. While only 3-in-10 retailers (38% globally and in APAC) currently use AI-based prescriptive analytics for loss prevention, more than half surveyed (50% globally, 52% in APAC) plan to use it in the next 1-3 years for this purpose. Over three in 10 retailers say they also plan to use self-checkout cameras and sensors (45% globally, 52% in APAC), computer vision (46% globally and in APAC), and RFID tags and readers (42% globally, 38% in APAC) within the next three years, specifically for loss prevention.
This should come as a relief to shoppers, as 78% say it is annoying when products are locked up or secured within cases. Adding to that frustration is that it is hard to find an associate while shopping in stores these days, according to 70% of consumers. This resonates with 79% and 70% of APAC shoppers respectively.
Increasingly over the past two years, the reason why one in five shoppers (21% globally, 22% in APAC) left a store without getting what they needed was due to a lack of available retail associates to help.
In 2023, 85% were satisfied with both the in-store and online experiences – this stood at 81% and 80% respectively for APAC shoppers. This year, only 81% are satisfied with the in-store experience and 79% with online shopping. Satisfaction similarly decreased for APAC shoppers, to 78% for in-store experience and 75% for online shopping.
Generally, most shoppers expect retailers to offer easy click-and-collect and returns options, yet retailers (79% globally, 85% in APAC) and associates (85% globally and in APAC) admit challenges with both . Most retailers also say it is a struggle to confirm current inventory and pricing. Plus, with more shoppers returning to stores, lingering labour shortages and increasing loss incidents are having a greater impact on service levels. For example:
78% of global shoppers (81% in APAC) say self-checkout options improve their shopping experience, yet 68% of global shoppers (67% in APAC) identify that self-checkout (SCO) lanes are lacking, with some reporting they have left a store without making a purchase because there were no SCO (shelf-checkout kiosks) or contactless payment options.
71% of global shoppers (70% in APAC) are concerned about the lack of help associates can offer, while 82% of global associates (76% in APAC) say it is even difficult for them to find help or ask for timely support when needed.
Nearly 90% of retail associates believe they can provide a better customer experience when they have mobile technology tools to help simplify real-time communication and prioritise tasks as well as check prices and inventory. Most retailers agree technology enables associates to do their jobs better, and as a result, 75% of global retailers (79% in APAC) say they plan to increase their technology investments in 2025.
“Many retailers are laying the groundwork to build a modern store experience,” said Nathahn Walter, ANZ Regional Sales Manager, Zebra Technologies. “By investing in mobile and intelligent technologies to provide greater visibility, help inform operational decisions and enable great mobility for associates, this ladders up to elevate the customer experience for retail’s long-term longevity.”
Along with enhancing customer experience, the study shows retailers’ top priorities include improving mobile workforce efficiency and productivity along with inventory management. More than one-third of them (39% globally, 41% in APAC) believe that GenAI will have an extremely significant impact on inventory management and demand forecasting. They will also be automating product locating and item-level RFID (46% globally and in APAC), video monitoring (45% globally and 36% in APAC), and stock-out alerts (45% globally, 49% in APAC) to give associates and shoppers real-time inventory visibility, which is a leading profitability driver.
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As retailers face growing pressure to meet shopper expectations, success lies in understanding and responding to customer needs. News, holiday, Retail Dynamic Business
