Retail therapy: ‘Greenwashing’ crackdown, virtual banking and AI yet to make full impact

Irish people love to shop – some might even consider it a key hobby of theirs. Whether it’s clothes or home goods, online or in-store, Irish people love to have “a little look around”. With big changes happening over the last few years in terms of not only how people shop, but how they were able to shop (moving primarily online during the pandemic), as well as advances in technology and how that impacts the customer journey, we take a look at some of the key trends experts are seeing now in retail, and what’s coming down the line.

Sustainable innovations

“Our research shows that most consumers want sustainable products, but they believe that brands need to do more to address sustainability,” says Keith Watt, partner, KPMG. “There’s a perception that brands talk a lot about sustainability but can’t always back up their claims. This is going to change, with new EU laws coming in that will crack down on ‘greenwashing’ and require standardised sustainability reporting. It’s also important for brands that can back up their sustainability claims to gain their customers’ trust and loyalty.”

Owen McFeely says there is much more interest in sustainability by retailers. “Businesses are starting to understand it more, and ‘onboard’ it. It’s become a priority for leadership teams, and not seen as a separate entity any more, but as part of the business strategy. Most businesses are taking a broader view.” Some areas that businesses are looking at include how they heat their buildings – whether through renewable sources or self-production, such as solar.

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In addition, retailers are looking at their packaging and moving to recyclable, compostable packaging, and aiming to take plastic out of the chain. “There’s a lot of product design going on in that area.”

Global comparison

McFeely says one key difference between Irish and global shopping trends is the adoption of technology. “We’ve always trended behind global peers and have found that countries like China tend to be much faster adopters.

“We were slow adopters of online shopping and digital payments. More recently when it comes to the Metaverse, and virtual/augmented reality, we tend to be behind on that.” He says we generally catch up, “we just tend to be a little behind”.

Future trends

McFeely says that one of the biggest trends retailers should be aware of is AI and how it will impact not only the business itself, through allowing people to offload repetitious tasks and focus on more value-adds, but also the shopper journey. “There’s a lot of concern about AI right now, but use cases will emerge which should mitigate concerns,” he says.

New payment and virtual banking technologies continue to attract new customers, offering them a lower-cost and more convenient experience than their traditional rivals, says Watt. “What’s notable is the extent to which customers are using them, not just for transferring money and making purchases, but also a host of other features. ‘Buy now, pay later’ products, now offered by a number of players, are becoming an increasingly popular form of credit for one-off large purchases – perhaps unsurprising given the inflationary environment.”

Watt says the use of apps such as Revolut to shop both online and offline and to send and receive money has increased, especially among younger cohorts. “Those aged 18-34 prefer mobile phone payments (such as Google and Apple Pay) and apps like Revolut more than any other option.”