Consumers are confused about the economy and the impact tariffs will have on their wallets. The deadline for imposing tariffs is approaching rapidly, and consumers are feeling anxious. Many shoppers report that they are scaling back on their spending. Although there has been a slight decline in monthly retail sales, people are still making spontaneous in-store purchases. Overall, year-over-year total sales are up 4.93 percent during the first six months of the year. According to a study by Optimum Retailing, an in-store experience management platform, a disconnect appears to exist between consumers’ buying behavior and their desire to spend less money.

• More than seventy-two percent of consumers have made an unplanned in-store purchase in the past month.
• Sixty-nine percent of consumers plan to decrease their spending
• Thirty-four percent plan to maintain their current level of discretionary spending over the next six months

For many consumers (63 percent), shopping in a physical store feels more stressful. Yet, 32 percent continue to find it enjoyable or worthwhile (24 percent). Since more than half of consumers still enjoy shopping, retailers should create opportunities to keep them engaged and loyal to the brand. “Brick-and-mortar retail continues to play a vital role in consumer decision-making, especially when shoppers’ budgets are tight,” said Same Vise, CEO of Optimum Retailing. “However, shoppers finding value in-store isn’t a given either. Our data underscores that U.S. consumers won’t settle for less than clear store layouts, relevant products, and meaningful incentives—factors that can drive loyalty and spark unplanned purchases among shoppers. “

Making the Connection
Consumers who become loyal customers are willing to invest time in shopping at a specific store or brand. That only happens when the relationship moves to the next level and becomes more than a simple transaction. The challenge for retailers is understanding what their customers value and consistently exceeding their expectations. Shoppers are raising the bar every day, and they expect retailers to keep pace with them and anticipate their next move. Hardware stores are well-positioned to deliver what shoppers say they want—connection, engagement, convenience, and personalization.

Rather than focusing solely on getting customers in and out of the store quickly, prioritize the overall shopping experience. Create a seamless process that makes people feel good about spending money in your establishment. As people strive to budget, achieving measurable results requires more effort from store owners.

Making the Connection
Consumers who become loyal customers are willing to invest time in shopping at a specific store or brand. That only happens when the relationship moves to the next level and becomes more than a simple transaction. The challenge for retailers is understanding what their customers value and consistently exceeding their expectations. Shoppers are raising the bar every day, and they expect retailers to keep pace with them and anticipate their next move. Hardware stores are well-positioned to deliver what shoppers say they want—connection, engagement, convenience, and personalization.

Rather than focusing solely on getting customers in and out of the store quickly, prioritize the overall shopping experience. Create a seamless process that makes people feel good about spending money in your establishment. As people strive to budget, achieving measurable results requires more effort from store owners.

Connection: Exceptional retailers want their customers to journey with them as they grow and explore new territory in terms of product assortments and technology. These owners also understand the importance of the human touch and the real meaning of customer service. Hosting product launches, educational workshops, and community events is a way to get to know the people you serve on another level. When you support organizations like Little League or Girl Scouts, you contribute to local causes that matter to your staff and customers.

Engagement: Most hardware stores are family-owned businesses with a few heartfelt stories in their legacy. Authentic storytelling goes a long way in conveying a company’s mission, vision, and values to customers. Invite customers into your world. Seeking and responding to feedback is an ideal way for customers to share their thoughts and opinions. Try using surveys, online reviews, and in-person suggestion boxes to gather input. Be sure to address concerns promptly and communicate the changes made in response to the inquiry.

Convenience: Customers dislike complicated checkout systems and waiting in long lines. Completing transactions and exiting the store should be effortless. Accepting multiple payment options (mobile wallets, credit/debit cards, and contactless payments) speeds things up and keeps the lines moving. Open extra registers when needed or initiate express lanes for small transactions. Pricing and promotions should be transparent and easy for customers to understand, and receipts should be accurate and complete.

Personalization: Physical stores have the advantage of offering personalized service. A well-trained staff with good people skills, effective communications, and product knowledge is a powerful incentive for customers to shop in your business. Empower employees to resolve minor complaints and give shoppers personalized care. When customers are greeted by name by an employee who knows their preferences, they appreciate the relationship.

While building relationships is critical, the goal is to generate sales. Despite a strong economy, consumers are fearful about what may be on the horizon with tariffs. Since discretionary purchases are essential to achieving bottom-line results, it’s helpful for retailers to understand what motivates shoppers to make purchases.

• Limited time sales or promotions (55 percent)
• Attention-grabbing product displays (45 percent)
• Getting the product instantly (26 percent)

Retailers who take a holistic approach are in the best position to deliver a customer-centric shopping experience and establish a genuine connection. Be prepared to experiment and innovate to stay in touch with what customers demand in terms of service, technology, and product assortments.