Retailers that do not offer point-of-sale finance risk losing 44% of potential customers
Recent research from Hitachi Capital Consumer Finance shows that retailers that are not offering point-of-sale finance – both in store and online – are at risk of losing 44% of potential customers, with jewellery, healthcare and electrical products being most affected.
Over a quarter of people (26%) who used credit in 2015 said they would have gone to another retailer if they didn’t have the option to ‘buy now, pay later’, while almost a fifth (18%) said they would have thought twice about buying the product altogether. Only 33% would have bought the same product on the same day using an alternative method, such as cash or a credit card.
In these challenges economic times, cost-conscious consumers are looking for easier ways to fund big purchases over a longer period in the form of finance, which is having a significant impact on people’s spending behaviour. 83% of customers said that the fact the retailer offered finance heavily influenced their decision to purchase, while 50% said it played ‘a very important’ role.
This is apparent in some retail sectors more than others. Jewellery, for example, could lose 40% of customers if they couldn’t offer finance, with healthcare following closely behind at 36% and electrical at 28%.
Robert Gordon, CEO of Hitachi Capital (UK) PLC, said:
“The future of retail is no longer just about having great products and a powerful brand, it’s about the ability to offer flexible financing options, seamlessly across all sales channels, 24/7. “There’s a direct correlation between offering point of sale credit and increased sales, this can be up to 80%, and demonstrates that used tactically, the availability of different finance options can transform retail business, enhance bottom-line profitability and increase brand value.”
Hitachi Capital provides over £1 billion of consumer lending each year to customers of some of the UK’s biggest high street names, including John Lewis, B&Q, DFS and Beaverbrooks.
To find out more about what Hitachi Capital is doing for its retail partners, visit www.hitachicapital.co.uk/retail-finance or call us on 0344 375 5501.
