How retailers can demonstrate trust
As we make our way through 2026, retailers are giving their predictions for the year ahead. The common themes are much as you would expect focussing on omnichannel integration, blended retail experiences, store investment and experiential physical retail as well as cost pressures, regulation and productivity focus. To this list we would add 'trust'.
Trust has long been a feature of retail slogans with messaging about "Value You Can Trust" and "Trusted by Shoppers Everywhere" aimed at building customer loyalty and explicitly highlighting trust as part of brand positioning. At a time of global uncertainty and mounting pressures on consumer expenditure, trust is going to be more important than ever.
What is trust?
The Cambridge Dictionary defines trust as a "belief that someone is good and honest and will not harm you, or that something is safe and reliable". If a retailer is to inspire trust, that trust must pervade everything it does from its relationship with its people through to those it does business with and of course its customers. So how can a retailer demonstrate trust?
People: Building trust with your workforce
Employment law is changing with the implementation of the Employment Rights Act. Over the next 12 months we are going to see radical changes to unfair dismissal claims, rules on prevention from harassment, family leave protections and collective redundancies, to name but a few. Now is the time to plan ahead and ensure that your people training as well as all your policies and procedures are up to date. We will be running employment seminars and workshops to help you get up to speed, but training and process are only part of the story.
Your people are your greatest ambassadors and if that relationship of trust does not exist between employer and employee, you will not only lose a valuable marketing tool, but you will damage your brand.
Ask yourself – does the culture of your organisation inspire trust? Are you doing enough to support your employees who face a daily increase in intolerance and violence from customers? Are your managers equipped to defuse difficult situations? If your model is changing to deliver excellent in-store experience, do your people receive a great experience from you? If the answer to any of these questions is "no" our employment team can help with a range of pragmatic and cost-effective solutions.
Supply chain: Moving beyond partnerships to genuine trust
I have advised on numerous supply chain arrangements over the past 30 years from the perspective of both customer and supplier. Too often I have seen supply chain contracts described as partnerships and yet, in reality, this description could not be further from the truth.
The arrangements are often "one-sided" with one party benefiting at the direct expense of the other. Instead of using an inappropriate description, retailers should consider how they can introduce trust to the relationship. If omnichannel integration is to be optimised, parties will have to build trust, while at the same time protecting their business. And trust has to extend throughout the relationship from the CEO/COO down to the operators on the ground.
Go back to first principles; what are you each trying to achieve? Can you balance the arrangement? If there are consequences of under-performance, why not have benefits from over-performance? And get your lawyers involved before you go out to tender. Too often, we get brought in at contract stage and the scene is set. Changes to key terms at this stage can damage trust but may well be a business imperative. Discussions at an early stage can reduce tensions and allow the parties to build a meaningful and trusting relationship.
Customers: Navigating complexity whilst maintaining trust
The relationship with the customer is becoming increasingly complex. On the one hand you have changing preferences – online vs bricks and mortar, product vs brand, sustainability vs profit, and on the other – cost pressures and regulation. All of this means that the industry faces limited volume growth after absorbing significant cost increases, while at the same time innovating to appeal to customers with less disposable income. Trust is at the heart of this relationship.
Do your customers trust you to handle their personal data? Are your advertisements, "legal, decent, honest and truthful"? Are your pricing practices transparent? Will you deliver orders when you say you will? With regulations changing thick and fast, you need to be able to keep up to date and able to implement solutions.
Trust as a two-way street
And finally, trust is a two-way street, and our retail sector specialists can help you navigate challenges. If you cannot trust your people, your supply chain members or your customers, you will not be able to meet your commitments.
Contact
Caroline Green
Senior Partner
caroline.green@brownejacobson.com
+44 (0)20 7337 1026