Recent research by Forsta highlights a crisis in customer satisfaction among British high-street retailers, revealing that negative in-store experiences are costing the sector up to £41 billion in lost revenue. According to the report, over 76% of negative online reviews, analysed from 50,000 sources, are attributed to unsatisfactory in-store encounters.
The study shows that a staggering 80% of UK adults will exit a store without making a purchase if they encounter a poor experience. Some key pain points include ineffective queue management and unsatisfactory staff interactions, contributing to 19.05% and 13.61% of negative feedback, respectively. This shows that cost-saving strategies like reduced staffing and increased reliance on self-checkouts are detrimental to the customer experience.
Retailers usually resort to significant discounting to clear unsold inventory. However, the findings reveal that the issue extends beyond macroeconomic pressures; mismanagement of the in-store experience is a critical factor undermining sales and customer loyalty.
“Long queues and unhelpful customer service are not just inconveniences—they erode customer trust and loyalty. When customers are frustrated in-store, they’re more likely to abandon their purchases and take their business elsewhere, ” said Kyle Ferguson, CEO of Forsta.
Still, simply increasing staff numbers may not resolve the problem entirely. The data reveals that 13.61% of complaints are related to negative interactions with staff, indicating deeper issues that transcend staffing levels. Retailers should, therefore, prioritise both customer experience (CX) and employee experience (EX), assisting and training staff to effectively represent the brand.
“The solution is technology that unifies business data across CX, EX, and brand performance. With the right data-driven approach, retailers can quickly focus on improving what’s within their control, such as optimising staffing and reducing wait times. These seemingly simple changes can lead to higher customer satisfaction, stronger loyalty, and ultimately, more sales,” added Ferguson.