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Mobile Users Speak: Digital Cross-Shopping In Physical Stores

September 6, 2012 Leave a comment

Researching products on a smartphone or tablet is quite popular among Mobile Users – 39.6% say they regularly conduct mobile research while 48.5% occasionally do so. Two in three (66.5%) also regularly or occasionally purchase products using their mobile devices. It’s no big surprise that mobile cross-shopping (searching the web on a mobile device to compare offerings and prices while browsing a physical store) is a growing trend among shoppers equipped with smartphones and tablets.

More than half (59.1%) say they have compared prices on a mobile device while shopping in a physical store. 1 in 3 still purchased from the same physical store (34.5%) but just as many chose to purchase from a different retailer (33.8%). The next most popular mobile cross-shopping activities include purchasing from another retailer’s website, either using a smartphone or tablet (25.9%) or logging on using a laptop after leaving the store (22.3%). Those Mobile Users who shopped Best Buy or Amazon.com in the past 90 days are more likely to engage in these activities:

*For this analysis, Shoppers are defined as those who said they shopped at a particular retailer in the past 90 days.

It’s interesting to see the vast majority of those who’ve recently visited Best Buy have cross-shopped without leaving a store, further promoting Best Buy’s growing reputation as Amazon.com’s showroom. These savvy mobile users are looking for the best buy, whether it’s at their current shopping location, next door or online.

Further, mobile devices are great shopping companions. 39.0% say they’ve used a smartphone or tablet to check out product reviews, 35.7% have scanned a QR code for more info, 23.8% have “checked in” for a discount and 17.7% requested a price match—all while shopping in a physical store! Amazon and Best Buy customers are even more prone to these thrifty digital habits:

Over a third (36.8%) of Best Buy shoppers say they’ve requested a price match via mobile while shopping…perhaps they’ve informed a Geek of a better buy found through the Price Check app from Amazon? Best Buy could be in trouble if Amazon’s customers continue to find the site so favorable.

Source: Prosper Mobile Insights™, Mobile Survey (AUG-12), N=328

© 2012, Prosper®

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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.

Consumer Intentions & Actions: April (Part 2)

It’s time for more insights from April! Let’s look into consumers’ future financial plans, the effects of rising gas prices and the outlook for several retail categories compared to previous years.

FINANCIAL PLANNING

The flip side of the spending coin is saving. So let’s take a look at Financial Plans. Here’s another question we’ve been tracking each month for many years: Which of the following financial steps are you planning to take in the next 3 months?

The plans I have displayed on this chart are:

  • Decrease Overall Spending
  • Pay Down Debt
  • Increase Savings
  • Pay with Cash More Often

 

Nine times out of ten, paying down debt is prioritized above decreasing spending, but, as you can see from the chart, that’s not the case in April.

  • As drivers increasingly pay to fill up their autos, it seems that they are looking to shore up other areas of spending to balance fuel expenses. Rising food and clothing prices also factor into the spending equation.
  • So that $4 cup of coffee I was just talking about might get axed in the budget if prices rise to the $4 or $5 per gallon range this summer.

Paying down debt is still very much a priority, though fewer are planning to do so compared to a year ago.

Increasing savings is just as important as it was back in April 2010, while a few more consumers seem less inclined to pay only with cash compared to that same time period.

Here are some other interesting statistics really showing what’s on consumers’ minds right now:

  • Two out of five consumers say they aren’t saving enough;
  • More than 60% say they are eating leftovers more often due to rising food prices;
  • And, two in five are making changes to their regular grocery lists to cope with price increases.
    • Some of the most targeted items for this budget “diet” include impulse items in general, snacks, candy, and cookies.

EFFECTS OF ESCALATING PUMP PRICES

I believe I’ve alluded to this several times now, so let’s finally take a look at the effects of escalating pump prices. This chart is an interesting one, as we are viewing the percentage of consumers who say their spending has been impacted by fluctuating gas prices crossed by the average price per gallon of gas at the time our surveys were conducted, according to the Energy Information Administration.

As you can see, the amount of people affected really took off once the price of gas hit $3.50. With pump prices rising again in April, we can see that the number affected rose as well.

Imagine what might happen if we cross into the $4 per gallon range. Nearly 80% already report being affected. Eight in ten consumers anticipate that the price at the pump will continue to rise through the end of April…

90 DAY OUTLOOK: BIG FORWARD LOOK

Now it’s time to move onto the BIG Forward Look, which maps out consumer spending plans over the next 90 days.

We ask a simple question each month…

Over the next 90 days, do you plan on spending more, the same, or less on the following items than you would normally spend at this time of year?

The results are then tabulated into our Diffusion Index (Spend More – Spend Less) and compared to previous periods of time. In the chart displayed on the screen, we are comparing April 2011 results with March, April 2010, and April 09.

As you can see, all merchandise categories are faring poorly compared to last month and last year.

We are seeing improved results for most categories from April 2009, but one would expect improvement from a recession-addled period of time, wouldn’t they?

And seasonal categories like Major Home Improvements and Lawn & Garden are areas of particular concern.

Finally, while I don’t have the pre-recession April 2007 results on this chart, all categories are in fact facing downward from this time period, so we’re still not nearing a spending recovery.

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That wraps up April! If you want more current consumer insights, including voting trends and media usage, be sure to check out http://www.BIGinsight.com. We update it constantly, so that data and insights are always fresh!

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