Retail has lost its heart – brands must relearn emotional intelligence

Retail is changing faster than the boardroom can keep up – and it’s not tech that’s lagging, it’s empathy. That was the warning from consumer expert and business adviser Kate Hardcastle MBE during a retail panel discussion for the UK North launch of her new book The Science of Shopping.

Kate challenged brands to stop chasing short-term gains and start rebuilding trust with emotionally intelligent leadership; highlighting that, in the race for innovation, many brands are forgetting the very thing that drives consumer loyalty: emotional connection.

“We’ve become obsessed with dashboards and data, but forgotten just how human shopping is. It’s still emotional. It’s always been emotional”, said Kate, who addressed an audience including guest panellists Richard Pownall CEO of Pooky Lights, Jan Duckworth, MD at Cox & Cox, Sarah Bianchi, CEO of Arighi Bianchi, and retail accessibility champion Hannah Cockroft, nine‑time Paralympic gold medallist. There were also questions posed by business leaders from Trendsetter (The Fine Bedding Company) and Silentnight, attending the event held at iconic retail destination Arighi Bianchi in Cheshire.

Hardcastle argued that the brands who succeed next won’t be the ones with the flashiest tools – but the ones who use technology to enhance human connection, not replace it.

“You’ve got to merge your data with your emotional intelligence. Build with your customers, not just sell to them. If you want to create legacy and long-term value, you have to care about how people feel”, she explained.

Her call for a “feel-good business” is more than sentiment. It’s a strategy. One that energises staff, inspires consumers, and ultimately delivers better performance on the bottom line.

Hardcastle also highlighted how the ongoing rise of retail-tainment is changing expectations. “Consumers don’t have to visit shops anymore – they must want to. That means brands have to offer more than convenience. They must deliver experience. That’s why environment matters so much. The smell, the theatre, the emotion – sensory storytelling is paramount.” 

This point is echoed by Arighi Bianchi CEO Sarah Bianchi, who is shaping the future of her family’s 170-year-old retail business with this strategy front and centre. Sarah believes that retail-tainment is about merging culture, tech, and human behaviour into something meaningful. Done well, it makes stores into destinations and brands into communities. Done badly, it’s just noise.

She advocates building the emotional bridge between your brand and your customer, and designing experiences, not just environments because it’s about long-term thinking – even if the results aren’t instant. Within this strategy Bianchi also emphasises the importance of creating brands people feel proud to buy from, and work for, which she highlights as a pivotal reason Arighi Bianchi is still going strong after 17 decades.

A final point highlight by Hardcastle was about the rising use of dynamic pricing and how a lack of transparency can erode trust. “Consumers understand that businesses need to make a profit. But they want fairness. If pricing feels sneaky, you’ve lost them” she said.

From supermarkets changing prices based on the weather to online platforms using real-time algorithms, pricing tech is evolving fast – but many consumers aren’t being brought along for the ride. Vulnerable groups, including the elderly, are especially at risk of being left behind. Her advice? Don’t hide the tech – educate consumers, and don’t ditch the human touch – enhance it and build a workforce that takes pride in delivering experience not just service. 

“This isn’t about warm fuzzies. It’s about building businesses that actually work – financially, operationally, and emotionally. That’s what creates value. That’s what earns loyalty. And it’s damn hard work.”

As the pace of change accelerates, Hardcastle’s message is clear: the brands that thrive tomorrow are the ones that are brave enough to feel today.

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