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Consumer Buzz: Women’s Clothing

April 12, 2012 3 comments

According to new analysis by BIGinsight, department stores are more buzzed about than discounters when it comes to shopping locales for feminine apparel.* For this special report, we’ve applied the Net Promoter Score** metrics system to our April Consumer Survey data to show how consumers perceive their Women’s Clothing store of choice.

Here, we took the percentage of a destination’s detractors from the number of those who actively promote their Women’s store of choice, which helps us evaluate the strength of a retailer’s image for the Women’s Clothing category. And, among the Top 5 stores for this segment, we found that Kohl’s receives the most net positive buzz (NPS = 36.2%) from its customers, followed by Macy’s and JC Penney (see below). While Target’s NPS was significantly lower than its department store counterparts (at 2.6%), the discounter still garnered an overall positive rating. That other big discounter – Walmart – was the only retailer in the Top 5 to calculate a negative NPS (-10.3%)…ouch.

Net Promoter Score - Women's Clothing

It’s interesting to note that while the most buzzed about retailers are department stores by definition, each courts customers based on varying motivations. For the Kohl’s and JC Penney shoppers, price and selection are the key reasons to peruse their racks; for Macy’s, it’s quality and selection. At Walmart, customers shop based on price and location, while Target woos shoppers with a mix of price, selection, and location (shoppers seem divided between the latter two).

Women's Clothing - Select Reasons to Shop a Store Most Often

What analysts are buzzing about, though, is consumers’ reaction to JC Penney’s new “Fair & Square” pricing strategy. As it turns out, JC Penney’s customers just aren’t as likely to be lured by coupons and special deals when it comes to shopping the Women’s section. While Walmart and Target are the least likely to be motivated by this sales simulant, over at Kohl’s, we might see shopper anarchy if this department store darling adopts a similar strategy #kohlscashforever

Coupons/Special Sales Motivate Women's Clothing Purchases

*April 2012’s Top 5 Retailers for Women’s Clothing (Kohl’s, Walmart, Macy’s, JC Penney, Target) were analyzed for this blog.

**Net Promoter, NPS and Net Promoter Score are trademarks of Satmetrix Systems, Inc., Bain & Company, and Fred Reichheld

The NPS which takes a simple question–Would you recommend us to a friend?–has helped countless organizations better understand “promoters” and “detractors” and paint a clear picture of their company’s performance through the eyes of their customers. By applying the Net Promoter Score*, executives can identify their customer base and move beyond “sufficient” to brand loyalty and growth.

For more information on this data, please contact BIGinsight™.

Source: BIGinsight™ Monthly Consumer Survey – APR-12 (N = 8724, 4/3 – 4/10/12)

© 2012, Prosper®

BIGinsight™ is a trademark of Prosper Business Development Corp.

“Fair is Fair” but is Square…well…Square?

March 22, 2012 8 comments

As any self-respecting child of the 80’s knows – “Fair is Fair.” Doesn’t the theme from that nearly 30 year old [ack!] cult classic take you back? Pat Benatar, anyone? Supergirl? An undying love for Christian Slater? But I digress…let’s hop out of the DeLorean and evaluate what really got me thinking about “Fair is Fair”:

JC Penney’s new “Fair & Square” Ad Campaign

The complete overhaul of JCP’s marketing, merchandising, and promotions plans certainly made headlines in the retail community, but what do consumers really think about this strategy switch-up? In addition to being practical and realistic in their purchasing, today’s shoppers are also “intelligent”: researching products, comparing prices, stalking sales, and couponing like crazy.  And, consumers are all the more informed when aided by their mobile devices. Knowing all this, it seems that JCP’s new “Fair & Square” approach might be as dated as a Flock of Seagulls hairdo. So who’s buying what JCP’s selling?Hot or Not? JC Penney's "Fair & Square" Ad Campaign

In our March Consumer Survey of more than 9,000 consumers, we put JC Penney’s “Fair & Square” Ad Campaign to the test in our monthly “Hot or Not?” feature. As it turns out, more deemed it “not” (58.3%) than “hot” (41.7%) – placing “Fair & Square” in the middle of the pack compared to the other items we polled this month.

But who are the two out of five customers who have at least had their interests – if not their wallets – piqued by “Fair & Square”? These shoppers are more prone to be women (59.9%), married (53.2%), middle-aged (46.7 years, on average), and earning about $56,000/year…sounds like JC Penney’s typical Women’s Clothing shopper.

Is that not interesting enough for you? Let’s take a look at “Fair & Square” from a different perspective – Women’s Clothing shoppers from competing retailers.* Interestingly, fewer shoppers at Walmart – home to the somewhat similar EDLP pricing strategy – warmed up to the idea of “Fair & Square.” Macy’s, Nordstrom, and Old Navy shoppers were relatively more excited by the concept than Kohl’s or Target loyalists:

JC Penney's "Fair & Square" Ad Campaign is HOT

From this standpoint, it appears that most shoppers have a so-so opinion of “Fair & Square” so far. Perhaps they’re walking into JCP to see what all of the fuss is about, but whether or not they’ll convert to the retailer over the long haul remains to be seen – as does the department store’s ability to retain its current customer base.

Ah, Love Retail is a Battlefield.

For more information on this data, please contact BIGinsight™.

* A selection of Women’s Clothing retailers was analyzed for this report. “Women’s Clothing Shoppers” are defined as those who shop most at a given retailer for Women’s Clothing (an unaided, write-in response).

Source: BIGinsight™ Monthly Consumer Survey – MAR-12 (N = 9242, 3/6 – 3/13)

© 2012, Prosper®

BIGinsight™ is a trademark of Prosper Business Development Corp.

FYU: Shoes

As reported in our latest Executive Briefing, Payless has once again surpassed Walmart for the top spot in Shoes. If you are a follower of our monthly insights on this topic, you would know that while this is a rare occurrence (Payless was last #1 in NOV-09), these two footwear retailers have been tangling for the top prize for quite some time:

Shoes - Store Shopped Most Often

Is there a reason behind Payless’ failed commitment to the lead in Shoes? Why isn’t Walmart hot-to-trot in this category, as it is with Men’s and Children’s Apparel, Groceries, and Health & Beauty Care? And doesn’t that two month upswing for Kohl’s, DSW, JC Penney look interesting in the chart above? For Your Understanding this month, we’ll hoof it through these questions, courtesy of our Retail Ratings Reports*.

In just the first few pages of this handy guide, we can see that:

–  Women have a preference for Payless, while Men typically head to Walmart most often. But speaking from a strictly biased point of view (#iloveshoes), we females are the Shoe connoisseurs and not-so-much for the fellas, right?
–  The sweet spot group of customers for both Walmart and Payless earn under $50,000 per year – so these retailers are competing for a lot of the same attention.
–  Interestingly, Kohl’s is tops among consumers in the lucrative $50,000+ and $75,000+ income brackets (though Payless is a close #2 with $50,000+ wage earners.)
–  Payless is the victor among the young crowd (18-34 year olds) and lands about a point ahead of #2 Walmart with shoppers 35 to 54 years old. Walmart is the favorite among those 55+.
–  Among the fashion forward set (a growing group of shoppers, according to our latest findings), Payless is most popular, followed by DSW, Foot Locker (OK, maybe a few men do enjoy shopping for Shoes), Macy’s, and finally Walmart. The competition is closer between Walmart and Payless among those who prefer value and comfort as well as shoppers sporting traditional styling.
–  Payless is tops in the Northeast and out West, while Walmart holds the Southern stronghold. Walmart leads by just a point over Payless and Kohl’s in the Midwest.

But let’s look a bit deeper with the Consumer Equity Index™ (CEI). The CEI – available exclusively within the Retail Ratings Reports – is a year-over-year index showing growth or decline of Consumer Preference Share (the % we collect each month for the store shopped most often). Here’s a key:

CEI = 100 (flat)
CEI = 105 (5% growth)
CEI = 95 (5% decline)

Our latest CEI ratings for Shoes show that Walmart is slipping in a segment in which Payless shines (along with Kohl’s and DSW and Macy’s and JC Penney):  the all-important and all-knowing female segment. Here, Payless has experienced near 12% growth while Walmart is suffering from a near 20% decline.Consumer Equity Index for Shoes - Women

BTW, your eyes aren’t deceiving you: female consumer preference share for DSW has increased 30%+ over March 2011. Macy’s and Kohl’s are also excelling among Women with nearly 20% growth apiece. Rising share for JC Penney is more in line with Payless at about 12%. #fiercecompetition

And, recall that sweet spot of core customers for both Walmart and Payless? If you were to analyze the CEI ratings for those earning under $50,000/year, you would find that Payless’ share is gaining, while Walmart’s is waning.

Now you understand: Payless is gaining ground over Walmart with two key demographics for both of these discount-oriented retailers: 1.) Women and 2.) Under $50,000 wage earners. Growing competition from the likes of Kohl’s, DSW, and JC Penney may be preventing Payless from gaining surer footing as the lead in this category.

Bottom Line: I clearly need more shoes Stay tuned for further developments in this hot category.

For more information on this data, please contact BIGinsight™.

Source: BIGinsight™ Monthly Consumer Survey, MAR-11 – MAR-12

* Retail Ratings Reports are available monthly for the following categories: Women’s Clothing, Men’s Clothing, Children’s Clothing, Shoes, Linens/Bedding/Draperies, Electronics, Hardware, Children’s Toys, Sporting Goods, Groceries, Health & Beauty Care, Prescription Drugs.

© 2012, Prosper®

BIGinsight™ is a trademark of Prosper Business Development Corp.

Valentine’s Day 2012: Do Macy’s Shoppers Have the Biggest Hearts?

February 6, 2012 1 comment

While it looks like consumers in general are feeling the love this Valentine’s Day, new analysis by BIGinsight shows that the hearts seem to grow fondest among Macy’s shoppers. For this exclusive report, we analyzed the Valentine’s Day plans among shoppers at five major U.S. retailers: JC Penney, Kohl’s, Macy’s, Target, and Walmart (non-grocery).*

While about three in five consumers (59.4%) overall are planning to celebrate February 14 this year, this number rises among Macy’s shoppers (68.2%). Hearts are also beating a little faster among Target (64.3%) and JC Penney (63.4%) buyers, while Kohl’s and Walmart are closer to the national average.

What really sets Macy’s celebrants apart from the rest is the amount they plan to spend on the ones they love. While the average consumer is allocating $126.03 towards gifts for significant others, children, friends, pets, and others, Macy’s shoppers are allotting about 30% more: $164.67. Every other shopper group we looked at for this report is planning to spend below average:

Valentine's Day 2012: Combined Average Spending Plans

So why are Macy’s shoppers’ spending plans so robust compared to the rest of the retailers we reviewed? We found a few interesting insights here:

Macy’s shoppers simply have more available to spend. The average yearly income of Macy’s shoppers exceeds the take home pay of the other shopper groups we looked at for this report.
Macy’s shoppers are wooing and less likely “I doing.” Macy’s (and Target) shoppers were the groups most likely to check the “Single, never married” box in the marital status portion of our survey, while JC Penney and Kohl’s shoppers were the most probable to be hitched. Come to think of it, I did receive more flowers, candy, and – most importantly – jewelry before I was married…
Sale shopping is less important to the Macy’s customers. In January, nearly one in five Macy’s shoppers reported that sales aren’t important to them when buying clothing, compared to just 9% of Kohl’s shoppers. BTW, Kohl’s customers are the most likely of these five groups to only buy clothing when on sale, probably accounting for at least part of why these deal-oriented shoppers have the most frugal Valentine’s Day budget. (Kohl’s Cash, anyone?)
Macy’s shoppers are more optimistic on matters of the economy. Nearly two in five (37.3%) Macy’s customers were very confident or confident in chances for a strong economy in January, 20%+ higher than general population (30.4%). Confidence among Kohl’s, JC Penney, and Walmart shoppers indexed below average, and as we all [should] know, low confidence does not spur spending.

For more information on this data, please contact BIGinsight™.

And, click to view the original National Retail Federation press release: Americans to Pull Out All the Stops This Valentine’s Day.

* “Shoppers” are defined as respondents who indicated that they shopped a retailer most often for at least one major merchandise category (including Women’s, Men’s, or Children’s Apparel, Shoes, Electronics, Heath & Beauty Care, etc.), unless otherwise noted. Shopper groups analyzed in this report are not mutually exclusive.

Source: BIGinsight™ Monthly Consumer Survey – JAN-12 (N = 9317, 1/4 – 1/11/12)

© 2012, Prosper®

BIGinsight™ is a trademark of Prosper Business Development Corp

FYU: Women’s Clothing

November 16, 2011 2 comments

For Your Understanding this week, let’s take a closer look at the Women’s Clothing category…

It was pretty big news this month when – for the first time in the 10 year history of our Monthly Consumer Survey – Kohl’s overtook Walmart as the store shopped most often for Women’s Clothing. Since late 2002, Kohl’s has been climbing steadily in this category, while Walmart has dropped precipitously since its early 2000s glory days:

Women's Clothing - Kohl's v. Walmart Shoppers

To get a better understanding of where Walmart has been crumbling, we can turn to our latest Retail Ratings Report. Just on the first few pages of this handy guide*, we can see that:

– Walmart is out-shopped by Kohl’s, Macy’s, and JC Penney among those earning $75,000+ per year (and even among though earning $50,000+/year);
– Walmart’s sweet spot of Women’s Clothing customers earn less than $50,000 per year;
– Kohl’s trumps Walmart in the Northeast and Midwest;
– Walmart enjoys loyalty in the South, while it’s a closer call between the two retailers out West.

But let’s look a bit deeper with the Consumer Equity Index™ (CEI). The CEI – available exclusively within the Retail Ratings Reports – is a year-over-year index showing growth or decline of Consumer Preference Share (the % we collect each month for the store shopped most often). Here’s a key:

CEI = 100 (flat)
CEI = 105 (5% growth)
CEI = 95 (5% decline)

Our latest CEI ratings for Kohl’s indicate that the department store darling is growing among the general population (Adults 18+), Women, Men, those earning $50,000+/year, as well as those earning less than $50,000/year (Walmart’s core shopper group). And, while Kohl’s is climbing across the board, Walmart is declining in each of these groups. A graphical representation of the CEI for the top five retailers in Women’s Clothing (among female shoppers):

Women's Clothing - Consumer Equity Index™ (CEI)

Here, we can see that Walmart is experiencing a 6% decline with Women, while Kohl’s is growing 4.5%. Among the top five retailers, JC Penney is faltering the most (at 12.5% decline). Macy’s is relatively flat, while Target is enjoying 5% growth.

Now you understand: With Kohl’s growing in each major consumer group while Walmart declines, it was inevitable that these top retailers would tussle for #1. It should be an interesting New Year for this category…stay tuned.

For more information on this data, please contact BIGinsight™.

Source: BIGinsight™ Monthly Consumer Survey, NOV-10 – NOV-11

* Retail Ratings Reports are available monthly for the following categories: Women’s Clothing, Men’s Clothing, Children’s Clothing, Shoes, Linens/Bedding/Draperies, Electronics, Hardware, Children’s Toys, Sporting Goods, Groceries, Health & Beauty Care, Prescription Drugs.

© 2011, Prosper®

BIGinsight™ is a trademark of Prosper Business Development Corp.

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