The influence of air conditioning on the customer buying experience
Sophie Davenport is co-founder and managing director at SFE Services. The Buckinghamshire-based business provides air conditioning, commercial refrigeration, and mechanical ventilation (HVAC). Sophie discusses why air conditioning is essential in retail and how the wrong temperature can cause customers to put down their baskets and leave.
Shop temperatures are often overlooked until it is too late – with lighting and noise often taking the forefront. When a heatwave hits, customers seek out the cool relief of air conditioning – turning on their heels and leaving any establishment that becomes too stuffy, especially when faced with the prospect of trying clothes on. It is in these moments that air conditioning can save businesses money. HVAC systems can be used all year round to maintain a consistent and comfortable environment.
The Health and Safety Executive set out guidance for minimum temperatures in retail. It states shops be kept at a temperature at or in excess of 16°C [1]. However, there is no maximum. But in most instances the optimum temperature for comfort is between 18°C to 21°C. Localised heating or cooling, including the use of fans, radiators and opening windows, should be used where an agreeable temperature cannot be maintained throughout a building.
However, retailers have a lot of factors to consider in settling on the perfect temperature. An influx of customers in summer attire may not be comfortable in a cold shop and vice versa when the winter coats come out and shops crank up the heating. Retail visitors are also likely to be more active than the shop attendants – whose uniforms may need to be adapted to reflect this. When considering what temperature to set the thermostat, it is important to set it at a range that appeals to the majority. Shops which are unsure of what temperature is best can seek feedback from customers and staff, allowing them to make adjustments accordingly.
High ceilings, open doors, large open spaces and the turnout of crowds can all also alter the temperature. With the rise of online shopping, retailers must strike the right balance to keep people visiting on foot.
Fashion retailers have the added pressure of ensuring the temperature on the shop floor and in the changing rooms accommodates customers wishing to try on items before they buy. If the changing room is too hot or too cold, the customer may put the items back on the shelf and take their business elsewhere.
Temperature is one battle retailers continue to fight. In 2014, Andy Street, John Lewis Managing Director, said: “Weather has had a greater effect [on sales] than economic numbers”.[2] Examples of extreme weather can range from storms, floods and blizzards to unseasonably hot and dry weather.
The UK retail industry can get hit particularly hard when the predictable weather patterns are disrupted. It has been found that “a seasonal temperature just 1°C higher or lower than average typically causes a 1% fluctuation in sales”. If the UK’s retail sector is valued at around £300bn, this equates to a deviation of £3bn.
In Autumn 2014, when temperatures were 1.5% above the historical average in the UK, clothing and footwear stockists said this was an “unmitigated disaster”. Marks & Spencer alone saw clothing sales fall by 5.3% due to the warm Autumn weather.
According to AccuWeather: “Weather not only shapes consumers’ desire for particular products and services, but equally determines the channels and methods they use to make the purchase.” Studies have found a switch from shopping on the high street to shopping in malls and centres during hot periods. This may be due to individuals seeking out the cool and keeping out of the sun.
Mintel found that nearly 60% of consumers change their shopping habits when it is hot or when it rains.[3]Other weather-dependent purchase habits include a delayed or fast-tracked change to the next season’s clothing purchases.
Weatherproofing your business with HVAC systems can help maintain footfall and keep customers coming even when the weather takes a turn.
However, maintaining footfall is not the only thing to consider, with studies finding that optimum temperatures may even increase dwell time. According to Retail Sensing, keeping customers looking for just 1% longer can see a 1.3% increase in sales.[4] This can be the difference between someone walking past an item of clothing they like and picking it up. Maintaining engagement for extra seconds can increase sales. Some shops have capitalised on this, with a premium feel environment and premium prices. In 2005 the New York Times sent a reporter into multiple shops in Manhattan and found a correlation between higher prices and lower temperatures[5]. They found that “almost without fail, the more ritzy the establishment is trying to be, the colder the air-conditioning is kept”. In other words, the higher the prices, the lower the temperature. The retailer’s investment in air conditioning and air management can make shops feel fresh and clean and as a result, which stands them apart from other humid and stuffy businesses.
Temperature control has a huge influence on the comfort of both customers and employees. It is widely acknowledged that thermal comfort impacts mood. If a space is uncomfortably hot or cold, it can lead to irritability. An air conditioning system can manage climate control, automatically adjusting to maintain a consistent environment without disruption.
Currently, the UK is seeing a growing trend in the uptake of air conditioning. Demand jumped from 154,000 in 2012 to 188,000 in 2017[6]. Similar can be seen across Europe where the use of air conditioning has risen by 60% since 2014[7]. Bright lights, computers, and other electronic equipment can easily tip the balance of warm and cool.
Effective air conditioning and climate control are essential for all retailers, with well-fitted HVAC systems being pivotal to the customer buying experience. Retail businesses must be equipped to handle fluctuations in temperature to maintain a comfortable and successful shopping environment. This will provide an environment where shoppers will want to stay longer and return to time and time again.
By Sophie Davenport, Co-Founder and Managing Director at SFE Services
[1]https://www.hse.gov.uk/temperature/employer/managing.htm#:~:text=Indoor%20workplaces&text=a%20reasonable%20working%20temperature%20in,%C2%B0C%20for%20strenuous%20work
[2] https://www.weatherads.io/blog/the-impact-of-weather-on-retail-sector-in-the-uk
[3] https://store.mintel.com/report/uk-christmas-gift-buying-market-report
[4] https://www.retailsensing.com/people-counting/retail-dwell-time-metric/
[5] https://www.nytimes.com/2005/06/26/fashion/sundaystyles/shivering-for-luxury.html
[6] https://invictus-mech.co.uk/air-conditioning-engineers/will-air-conditioners-become-commonplace-in-the-uk/#:~:text=Overall%20AC%20demand%20in%20the,increase%20in%20its%20AC%20demand.
