- 89 per cent of retail executives agree consumers have become less loyal to brands over the past decade
- Giving consumers greater access to product information is critical in earning back trust in brands
- 41 per cent say that next generation QR codes will replace the barcode within the next five years; 71 per cent predict they will become the norm by 2026
London, 12 November - 96 per cent of leading UK retail executives expect another retail technology transformation by 2030 – with 43 per cent saying their industry is changing more rapidly today than they have ever witnessed in their careers.
A crisis of consumer trust in brands is a major catalyst according to consumer expert and retail strategist Kate Hardcastle MBE.
It comes as 89 per cent of retail executives agree consumers are less loyal to brands than they were 10 years ago. This is reinforced by the fact that under half (48 per cent) of the UK population express some level of trust in businesses.
The report was commissioned by GS1 UK to understand the trends, challenges and priorities facing the retail industry. It found that 92 per cent within the industry say there will be no retail transformation without a unified approach to data and transparency.
Technology which can communicate data to consumers emerged as essential to stemming the decline in consumer trust; with QR codes powered by GS1 being recognised as a key enabler.
These smarter QR codes are dual-purpose – giving every product the ability to provide consumers instant access to comprehensive online information and also going beep at the till.
The potential of this technology is so great that 41 per cent of leading UK retail executives say smart QR codes will replace the linear barcode within five years, creating huge changes for businesses and the way that consumers shop – not just in the UK but worldwide.
91 per cent within the industry believe that most retail businesses are still using technology dating from the 1990s – so the race to transition becomes even more challenging.
This challenge must be addressed given that 84 per cent of executives said that those who do not adopt smart QR codes within the next three years will lose out on billions of pounds in revenue.
QR codes powered by GS1 are now being tested in 48 countries, representing 88% of the world’s GDP. Globally, GS1 aims to ensure a comprehensive rollout by 2027 and many leading household brands including PepsiCo, Walmart, P&G, Loreal and Amazon are already on board.
Morrisons is one of the retailers exploring the potential of this new technology with solutions architect, Sagar Mehendale, saying that the smart QR code, supported by trusted data, is replacing the barcode to become the “‘de facto standard for identifying your product at SKU level and also augmenting information about the product.”
Increasing transparency between brands and consumers was found to be the top method of rebuilding consumer trust – with 77 per cent of consumers seeking in-depth information on the products they purchase.
QR codes powered by GS1 will allow consumers to instantly access hyper-relevant insights. This could include information on a products provenance, its carbon footprint, the risk of contamination with potential food allergens – and much more.
For example, access to detailed and trusted data from across the supply chain would allow climate conscious consumers to learn where a products components are made or sourced and the volume of emissions generated in their manufacture and transport. Similarly, ethical consumers can inform themselves about the labour standards behind every product.
Over one-third (34 per cent) of executives say that the ability of customers to access product information will be one of the biggest areas of change in retail between now and 2030.
The report found that when customers lose trust in product data because it is inaccurate or insufficient, they often lose trust in the brands that provide it.
For example, previous research from GS1 UK found that mislabelled or unclear food packaging has meant that 56 per cent of people with food allergies have had an allergic reaction.
Whilst 57 per cent believe companies engage in ‘greenwashing’ – highlighting the collapse of trust in product information and the reputational risk this can cause. With 88 per cent agreeing that smart QR codes will be essential in the future for meeting regulatory requirements, highlighting their importance for supporting sustainability goals.
The new level of transparency brought about by a revolution in access to product information will help consumers differentiate the brands which are open and honest, from those that are not.
This comes as nearly half (46 per cent) of the companies surveyed in the report said they have already begun building QR capabilities, and 52 per cent will start doing so within the next two years.
As many as four in 10 (40 per cent) respondents said that without this additional investment, retail businesses will be unable to meet their sustainability targets – with 53 per cent agreeing that quality data will be essential to ensuring these are met.
According to the report, improved QR capabilities will help businesses to build an end-to-end view of the product journey built on trusted data that flows from suppliers, into stores and ultimately into the hands of consumers.
Kate Hardcastle, retail strategist, explained: “Consumers’ constant demand for more information and a better experience will create a survival-of-the-fittest dynamic in retail, even among the sector’s biggest brands. Those which provide greater transparency by giving consumers open and honest easily accessed information will have an undeniable competitive advantage.”
Anne Godfrey, CEO of GS1 UK, who led the report with FT Longitude said: “The invention of the barcode is one of the great, untold stories in the history of our modern world – it is more frequently used than Google. The next generation of barcodes codes – QR codes powered by GS1 – will underpin the next retail revolution to give greater power to the consumer. They will connect physical products to the digital world to give businesses the power to provide the detailed product information consumers are increasingly demanding.
“This has the potential to shape the future of retail and usher a new era of transparency. QR codes powered by GS1 will transform consumer engagement, enhance ESG reporting at both a product and a company level, and improve traceability and transparency up and down the food chain, and much more. This will hold brands accountable and allow consumers to make informed decisions based on data they can trust.”
The report discovered a whole host of innovating driving the retail revolution. 70 per cent say the Internet of Things (IoT), blockchain, predictive analytics, automation, artificial intelligence (AI), and augmented and virtual reality (AR/VR) will also play a key role for their companies’ future growth.
Around a third of the executives agree that immersive experiences using metaverse technologies such as AR/VR will be commonplace in future retail environments.
51 per cent expect the traditional checkouts to ‘check-out’, believing that these are likely to disappear from stores within five years.
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Notes to editors
For further information or requests for interviews, contact Max Fairhurst, max.fairhurst@redbrickroad.com, 07799 739438.
About the report
This report is based on a survey of 507 senior retail industry executives in the UK, as well as a series of one-on-one interviews with retail executives. GS1 UK undertook the study in partnership with FT Longitude, and the survey was carried out by Opinium.
The survey was conducted online in June 2024. Of the executives who took part, 48 per cent work at retailers and 52 per cent at consumer goods producers (CGPs).
The full report, “A new era of transparency”, can be accessed here: gs1uk.org/a-new-era-of-transparency
About GS1 UK
Whether online, in store or in a hospital, the common language of GS1 global standards is helping our community of more than 60,000 organisations across the UK to uniquely identify, describe and track anything, creating greater trust in data for everyone.
From product barcodes to patient wristbands, GS1 standards have been transforming the way we work and live for 50 years. We are now embarking on the next 50 years of industry transformation delivered through QR codes powered by GS1.
GS1 UK is one of 118 neutral and independent GS1 organisations operating worldwide.