Co-Op Funeralcare Laments Low Death Rates in U.K.
The changes sweeping the death care industry and improvements in end-of-life care continue to affect the business model of traditional funeral homes. Britain’s largest funeral provider, Co-Operative Funeralcare, has seen a drop in business this year as death rates in the U.K. decline and consumers exdplore a wider variety of death care options. Co-Operative Funeralcare operates over 1,000 funeral homes. It’s part of the larger Co-operative Group, a member-owned conglomeration of businesses that also includes food retail, pharmacy, insurance, and legal services.
The death of traditional U.K. funerals
Mortality rates in the U.K. steadily declined between 2001 and 2016, thanks largely to improvements in healthcare and lifestyle that help people live longer. Changing attitudes toward death and funerals also affect the way consumers engage with end-of-life products and services and, subsequently, the bottom line of funeral service providers. Although the “traditional” funeral as we know it is a relatively modern invention, the funeral industry has grown used to a customer base that, by and large, doesn’t question established norms.
However, the last decade has witnessed a significant shift in public attitudes toward death and end-of-life practices. A number of factors including the reduced importance of religion, environmental concerns, and increasingly frank public discussions about end-of-life planning have contributed to a growing public awareness of and engagement with the processes surrounding death and dying.
Be like Bowie
As more people leave organized religion, the lavish church funeral has lost popularity, reducing the need for the services that surround it. In the U.K., recent polls show that only 10% of people are interested in a “traditional” funeral, with the vast majority expressing interest in more secular and personalized funeral services and memorials. In lieu of strong cultural or religious traditions, many people opt for more unique rituals that celebrate the life of the deceased by paying tribute to their passions. Some are also choosing simple and cost-effective options such as home funerals or direct cremation. Bolstered by its recent fame as David Bowie’s chosen method of disposition, direct cremation involves no formal service and costs significantly less than a funeral.
In recent years, movements and organizations such as Death Cafe have begun to break down long-standing taboos around discussing death and end-of-life planning. These movements argue that improved awareness of end-of-life planning options can help people have a more comfortable, peaceful death. Professional death doulas assist the elderly and those with terminal diagnoses in regaining a sense of control and easing the anxieties that accompany dying. Open and frank discussion of death and dying provide a space for people to make more informed decisions and improve their quality of life in their last days.
Environmental concerns also play a role in shifting attitudes as the popularity of “green burials” and environmentally conscious disposition methods grows. A growing number of consumers are opting out of embalming, choosing biodegradable caskets or urns for their remains, and seeking more energy-efficient processes such as resomation, also known as aquamation.
U.K. under the microscope
The decline in profits comes despite steeply rising funeral costs. Over the last decade, the cost of funeral services has outpaced inflation at such a high rate that the Competition and Markets Authority (CMA), the U.K.’s business competition watchdog, has launched an investigation to ascertain whether the price increases are justified. Since 2010, funeral costs have risen by 68%, while the rate of inflation during the same period was 25%. For Britain’s poorest, a funeral can cost as much as 40% of their annual expenditures.
Funerals are notorious as a particularly sensitive life event, when even the most circumspect and frugal consumers find themselves in no position to conduct market research. Funeral homes are also less likely than other businesses to rely on repeat customers, and the bereaved feel less inclined to discuss funeral expenses or the quality of services with their acquaintances. People seeking funeral services find themselves in a uniquely disadvantaged position, and research shows that the effects of inflated funeral costs disproportionately affect the poor. Some people see the rising costs and lack of transparency as exploitation of bereaved people at their most vulnerable and an attempt by a floundering industry to shore up its profits.
Contemporary concerns
Industry reform advocates argue that high up-front fees, unclear pricing, and the time-sensitive and emotional nature of these transactions create conditions prone to exploitation. They claim that posting prices online would make it easier for customers to shop and compare, but many companies are reluctant to do so, citing the personal and delicate nature of funeral arrangements.
Traditional funeral homes, like all other businesses, must understand and keep up with the demands of a changing market. A field full of highly skilled and compassionate professionals but not widely known for innovation, the funeral industry has to explore ways to connect with new generations of customers. Its future necessarily lies in a deeper understanding of evolving consumer attitudes and the development of new products and services that address contemporary concerns and offer meaningful end-of-life and memorial experiences.
