A growing trend in retail has emerged where shoppers are frequently asked at checkout if they would like to donate to charity, but this practice may not be as beneficial as it seems. Research indicates that many customers feel pressured and guilty when confronted with these requests, particularly during challenging economic times.
This strategy, termed “checkout charity,” has gained popularity in various regions, with retailers successfully raising significant funds. For instance, the Australian clothing retailer Cotton On generated approximately A$20 million through these campaigns in 2024. Similarly, the American pizza chain Domino’s has collected over US$126 million for St Jude Children’s Research Hospital by inviting customers to round up their bills for donations over the past two decades.
Despite the apparent advantages for charities and businesses, recent studies suggest that checkout charity campaigns can create negative feelings among consumers. This phenomenon prompted researchers to explore how such requests impact customer sentiment and retailer reputation.
Consumer Reactions to Donation Requests
A survey conducted by researchers, including Arvid O. I. Hoffmann and David Matthews, involved 329 participants who were presented with a checkout donation scenario. The findings revealed that many customers felt pressured and anxious when faced with the request, leading to feelings of guilt if they chose not to donate.
Comments from respondents highlighted their discomfort with the situation: “The grocery store has a lot more money than I do. Why am I the one expected to make a donation?” and “I feel like they are using the social construct of societal shame to coerce people into donating.”
The study showed that negative emotions triggered by donation requests resulted in consumers being less willing to contribute, less satisfied with their shopping experience, and more critical of the retailer. These outcomes present challenges retailers and charities should aim to avoid.
Addressing the Dark Side of Checkout Charity
The interaction at checkout often places customers under both time pressure and social scrutiny, which can lead to discomfort rather than the intended “warm glow” of altruism. As shoppers feel rushed and judged, skepticism can arise regarding the motivations behind the donation requests.
Many surveyed individuals expressed doubts about the actual impact of their contributions, with some mistakenly believing that companies benefit from tax deductions for customer donations. This skepticism can undermine the goodwill intended by such campaigns, potentially harming the reputation of both retailers and the charities they support.
To improve the effectiveness of checkout charity, researchers suggest several strategies. Retailers could inform customers about donation opportunities earlier in the shopping process, using signage or flyers to reduce surprise and pressure at the checkout. For example, Woolworths successfully employed this tactic during its Easter appeal by notifying shoppers in advance about donation options.
Additionally, redesigning payment interfaces to allow for private choices can help alleviate feelings of being watched or judged. Some supermarkets are already implementing this approach at self-service checkouts.
Campaigns can also benefit from sharing engaging stories that illustrate the impact of donations, rather than merely presenting statistics. Clear communication about how funds are allocated and their effects can rebuild trust and reduce skepticism among consumers.
As the holiday shopping season approaches, it is crucial for retailers to consider these insights to create positive experiences around charitable giving. By addressing the emotional dynamics at play, businesses can foster a more supportive environment for both shoppers and charitable organizations.
