Recently, Wal-Mart announced its new strategy for future growth: opening smaller locations in mainly urban areas. Wal-Mart is not the only retailer scaling its stores down, Best Buy, Target* and Bloomingdale’s have all begun to experiment opening up smaller versions of their stores in major cities. And while this idea may sound appealing to many, it is not without its challenges. Besides the difficulty of finding sufficient retail space, one of the biggest obstacles is the potential for backlash that could erupt among local community activists. Indeed, a retailer that wants to build a new store in any location could be stopped dead in its tracks if local community activists are rallying against them. Given the complexity of this environment, how can retailers successfully operate in such a setting? And more importantly, how can the average retailer tap into community activists’ ability to organize broad-based support for their side? Answer: reputation.
APCO’s Return on Reputation Indicator, a study of the retail industry found that addressing the key issues and expectations of local community activists in an effort to improve reputation can have a significant impact in shaping the behavior of these stakeholders. The study shows that a one-point increase in the Retail Reputation Index could lead to an additional 94,600 community activists who are speaking out in support of the industry – including supporting having a new store built in their backyard. At the same time, a one-point increase in the Retail Reputation Index can reduce the number of critics who are actively opposing the industry by 35,400.
Our study shows that community activists are most concerned with the retail industry’s activities in their local community. To create more vocal Retail Advocates and fewer Retail Critics, the industry should address community activists’ concerns related to Land Use – mainly ensuring that stores take up less land and space. Land Use can have a significantly greater impact in shaping reputation than all other reputation drivers. Community activists also have high expectations for retailers to invest in the local economy, and Local Investment is among the top drivers of the retail industry’s reputation among this stakeholder group. The retail industry’s commitment to Waste and Recycling – disposing of waste properly and encouraging recycling – is the greatest opportunity for the retail industry to take an environmental leadership role among community activists.
As retailers continue to explore new and different options to foster future growth, meeting the expectations of its various stakeholders – including community activists – can have a real impact on the success of its new ventures.
*APCO client
Using Reputation Capital to Build Community Activist Support
Recently, Wal-Mart announced its new strategy for future growth: opening smaller locations in mainly urban areas. Wal-Mart is not the only retailer scaling its stores down, Best Buy, Target* and Bloomingdale’s have all begun to experiment opening up smaller versions of their stores in major cities. And while this idea may sound appealing to many, it is not without its challenges. Besides the difficulty of finding sufficient retail space, one of the biggest obstacles is the potential for backlash that could erupt among local community activists. Indeed, a retailer that wants to build a new store in any location could be stopped dead in its tracks if local community activists are rallying against them. Given the complexity of this environment, how can retailers successfully operate in such a setting? And more importantly, how can the average retailer tap into community activists’ ability to organize broad-based support for their side? Answer: reputation.
APCO’s Return on Reputation Indicator, a study of the retail industry found that addressing the key issues and expectations of local community activists in an effort to improve reputation can have a significant impact in shaping the behavior of these stakeholders. The study shows that a one-point increase in the Retail Reputation Index could lead to an additional 94,600 community activists who are speaking out in support of the industry – including supporting having a new store built in their backyard. At the same time, a one-point increase in the Retail Reputation Index can reduce the number of critics who are actively opposing the industry by 35,400.
Our study shows that community activists are most concerned with the retail industry’s activities in their local community. To create more vocal Retail Advocates and fewer Retail Critics, the industry should address community activists’ concerns related to Land Use – mainly ensuring that stores take up less land and space. Land Use can have a significantly greater impact in shaping reputation than all other reputation drivers. Community activists also have high expectations for retailers to invest in the local economy, and Local Investment is among the top drivers of the retail industry’s reputation among this stakeholder group. The retail industry’s commitment to Waste and Recycling – disposing of waste properly and encouraging recycling – is the greatest opportunity for the retail industry to take an environmental leadership role among community activists.
As retailers continue to explore new and different options to foster future growth, meeting the expectations of its various stakeholders – including community activists – can have a real impact on the success of its new ventures.
*APCO client
Tags Reputation and tagged community activists, land use, retail critics, return on reputation, ror, waste and recycling
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