The growing trend of retailers asking customers for donations at checkout, known as “checkout charity,” has sparked mixed reactions among shoppers. This practice, while generating significant funds for various causes, has also led to feelings of guilt and pressure among consumers. Research indicates that, particularly during the holiday shopping season, these requests can leave customers feeling uncomfortable and coerced.
In Australia, the clothing retailer Cotton On raised approximately A$20 million in 2024 through its checkout charity campaigns. Similarly, in the United States, Domino’s has contributed over US$126 million (around A$190 million) to St Jude Children’s Research Hospital over the past twenty years by inviting customers to round up their bills for donations. While the intention behind such initiatives is often positive, recent studies suggest they may have unintended negative consequences for both retailers and charities.
Customer Reactions and Emotional Impact
Research conducted on this phenomenon indicates that many customers do not respond positively to checkout charity requests. A recent survey involving 329 consumers revealed that numerous participants felt pressured, guilty, or anxious when asked to make a donation at the point of sale. Comments from respondents included sentiments like, “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.”
These negative emotions can significantly impact consumer behavior. The survey findings indicated that shoppers who felt uncomfortable when asked for donations were less likely to contribute, reported lower satisfaction with their shopping experience, and were more critical of the retailer involved. Given that retailers aim to foster positive customer experiences, these outcomes pose a challenge.
Pressure and Skepticism
Checkout charity requests often force customers to make quick decisions under social and time pressures. With other shoppers waiting behind them and a cashier present, the situation can evoke feelings of judgment. As a result, the anticipated “warm glow” effect typically associated with charitable giving may be overshadowed by discomfort and skepticism.
Many consumers expressed doubts regarding the motives behind these requests. Some suspected that companies were more interested in improving their public image than genuinely supporting charitable causes. Others incorrectly believed that businesses benefited from tax deductions on customer donations. Concerns about how funds are allocated also contributed to a general sense of mistrust.
To address these issues, retailers can adopt strategies to enhance the effectiveness of checkout charity campaigns. For instance, providing information about donation requests earlier in the shopping experience, through posters or flyers, can alleviate the element of surprise at the checkout. This approach, which Woolworths utilized during its Easter appeal, allows customers to prepare for the option to donate.
Additionally, redesigning payment screens to support private choices can reduce feelings of being watched or judged. Some supermarkets have already begun implementing this innovation at self-service checkouts. Campaigns that tell compelling stories about beneficiaries rather than merely presenting statistics can also resonate more deeply with customers.
Crucially, transparency is essential. Retailers should clearly communicate how donations are collected, where the funds go, and what impact they have. This can help rebuild trust and mitigate skepticism among consumers, making them more likely to engage in charitable giving.
As the holiday shopping season continues, retailers face the challenge of balancing fundraising efforts with customer satisfaction. By understanding the potential pitfalls of checkout charity requests, businesses can work towards creating a more positive experience for shoppers while still supporting important causes.
