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Welcome
to the ShopperScape™
Newsletter February 2007
- Expect gift cards to become integrated into shopping habits beyond holiday.
- Anticipate online shopping will continue to account for a growing share of wallet. Retailers’ Web site performances will become an increasingly important measure in gauging success.
- Look for a happy Valentine’s Day especially for those in the card and candy businesses.
- Expect more men to loosen the purse strings for the heartstrings this year and smell the roses.
| JANUARY SALES BOOSTED BY GIFT CARDS |
Wide range of retailers benefit
As reported in January’s ShopperScape™ newsletter, more than half (57%) of households received gift cards for holiday presents this year. The types of gift cards consumers received most often ranged across channels—restaurants, supermarkets, mass merchants, specialists and department stores (Figure 1).
- Among Down Market households gift cards were concentrated in restaurant and mass merchant channels especially Wal-Mart Supercenter.
- In contrast, Up Market households’ gift cards were more often Target cards than Wal-Mart cards and also spread among a wider variety of channels. In addition to receiving restaurant/coffee shop gift cards, plenty of Up Market households got gift cards from clothing specialty and books and media retailers.
Figure
1
Type of Gift Cards Received by Households during 2006 Holiday Season
|
Total |
Down Market (Under $22,500) |
Middle Market ($22,500-$74,999) |
Up Market ($75,000+) |
Restaurant/coffee shop |
30% |
21% |
30% |
35% |
Wal-Mart/Wal-Mart Supercenter |
24% |
41% |
22% |
14% |
Target/Target Greatland/SuperTarget |
13% |
10% |
11% |
18% |
Books and media stores (e.g., Borders Books and Music) |
12% |
8% |
11% |
18% |
Best Buy |
9% |
6% |
8% |
13% |
Credit card gift card (e.g., AmEx, Discover, MasterCard, Visa) |
8% |
4% |
9% |
10% |
Clothing specialty stores (e.g., Gap, GapKids, Express, Chico's, Old Navy, Brooks Brothers, Talbot's, A&F, Limited Too) |
8% |
4% |
6% |
12% |
Traditional department stores (e.g., Macy's, Dillard's) |
6% |
3% |
6% |
8% |
The Home Depot |
6% |
1% |
6% |
8% |
Kohl's |
6% |
5% |
5% |
7% |
Supermarkets |
5% |
6% |
6% |
3% |
Mall gift card (good at any retailer in the mall issuing the card) |
4% |
2% |
4% |
6% |
JCPenney |
4% |
4% |
4% |
4% |
Lowe's |
4% |
2% |
4% |
4% |
Sears |
3% |
2% |
4% |
4% |
Home furnishings stores (e.g., Bed Bath & Beyond, Crate & Barrel, Pier 1 Imports) |
3% |
<1% |
3% |
5% |
Toys “R” Us |
3% |
<1% |
2% |
5% |
|
|
|
|
|
Other |
28% |
25% |
27% |
32% |
Source:
Retail Forward ShopperScape™.
Gift cards seem to have brought more consumers into stores to shop this January than in January 2006. Compared with last year, larger percentages of shoppers reported shopping at most retailers with high percentages of gift card recipients (Figure 2).
- Year-to-year increases in percentages of shoppers patronizing specific retailers in the past 4 weeks are highest for Best Buy, JCPenney, Kohl’s and Wal-Mart Supercenter, which has been expanding aggressively.
- Of the retailers on the list, only The Home Depot remained static in the percentage of shoppers visiting the store.
Figure
2
Percentage Shopping Retailer in the Past 4 Weeks
|
January 2006 |
January 2007 |
Year-To-Year
Percentage Point Difference |
Target/Target Greatland |
32% |
35% |
+3 |
SuperTarget |
11% |
13% |
+2 |
Wal-Mart |
30% |
33% |
+3 |
Wal-Mart Supercenter |
40% |
44% |
+4 |
|
|
|
|
Best Buy |
25% |
31% |
+6 |
Circuit City |
13% |
16% |
+3 |
|
|
|
|
JCPenney |
25% |
30% |
+5 |
Kohl's |
20% |
24% |
+4 |
|
|
|
|
Lowe's |
23% |
26% |
+3 |
The Home Depot |
31% |
31% |
0 |
|
|
|
|
Bed Bath & Beyond |
18% |
21% |
+3 |
Linens 'n Things |
10% |
11% |
+1 |
Source:
Retail Forward ShopperScape™.
Allowing for seasonal shifts in shopping patterns, the number of stores shoppers visit in a given month has been steadily declining amid continued elevated gasoline prices and growth in online shopping. At the beginning of the year gasoline prices eased a bit and this easing could also account for some of the increase in January store patronage. However, gift cards burning holes in consumers’ pockets certainly boosted January traffic and sales.
Online shopping also popular among some of the big players
Not only were January shoppers visiting big retailers’ stores, many were shopping online during the month--sometimes in addition to shopping at stores (Figure 3).
- Most notably shoppers of the two largest CE chains—Best Buy and Circuit City—often shopped online. In fact, nearly half of Circuit City’s patrons shopped online.
- Also shoppers of the retailer on the list with the longest history of multi-channel retailing expertise JCPenney were more likely than average to shop its website.
Figure 3
Percentage Shopping Retailer Stores vs. Online in the Past 4 Weeks
|
Percentage
Shopping Retailer
in the Past 4 Weeks |
Shopped
Retailer's Store in Past 4 Weeks* |
Shopped Retailer's Web Site in Past 4 Weeks* |
Target/Target Greatland |
35% |
95% |
17% |
SuperTarget |
13% |
95% |
11% |
Total Target |
45% |
96% |
16% |
|
|
|
|
Wal-Mart |
33% |
95% |
16% |
Wal-Mart Supercenter |
44% |
99% |
8% |
Total Wal-Mart |
68% |
98% |
13% |
|
|
|
|
Best Buy |
31% |
79% |
36% |
Circuit City |
16% |
64% |
48% |
|
|
|
|
JCPenney |
30% |
82% |
27% |
Kohl's |
24% |
90% |
17% |
|
|
|
|
Lowe's |
26% |
92% |
15% |
The Home Depot |
31% |
91% |
15% |
|
|
|
|
Bed Bath & Beyond |
21% |
90% |
16% |
Linens 'n Things |
11% |
85% |
21% |
*Among shoppers who have shopped the retailer in the past 4 weeks
Source:
Retail Forward ShopperScape™.
Loving February
Retailers of Valentine’s Day gifts—especially greeting cards stores, floral shops and candy sellers—should welcome February (Figure 4).
- Shoppers of both genders planning to purchase gifts for Valentine’s Day are planning to spend more than they did last year.
- Men are especially feeling generous regarding their spending plans compared with last year.
- Categories where much larger percentages of shoppers plan to spend include greeting cards and candy followed by flowers.
- Women will be more likely to spend on greeting cards and candy than men while men will dominate flower-buying.
Figure 4
Compared to last year, do you plan to spend more, the same,
or less this year on gifts for Valentine's Day?
| |
Male Shoppers |
Female Shoppers |
| |
2006 |
2007 |
2006 |
2007 |
| Much More/Somewhat More |
8% |
7% |
7% |
9% |
| About the Same |
46% |
52% |
41% |
44% |
| Much Less/Somewhat Less |
13% |
10% |
15% |
12% |
| Do not Purchase gifts for Valentine's Day |
34% |
31% |
38% |
36% |
| |
|
|
|
|
Percentage Planning to Purchase Gift for Valentine's Day* |
| |
|
|
|
|
| |
Male Shoppers |
Female Shoppers |
| |
2006 |
2007 |
2006 |
2007 |
| Greeting Cards |
60% |
69% |
69% |
81% |
| Candy |
35% |
44% |
44% |
59% |
| Flowers |
40% |
49% |
12% |
15% |
| Fragrances/Cologne |
8% |
6% |
7% |
10% |
| Fine Jewelry |
9% |
10% |
5% |
4% |
| Costume Jewelry |
1% |
2% |
2% |
4% |
| Women's Lingerie |
6% |
6% |
7% |
8% |
| Men's Underwear |
3% |
3% |
6% |
9% |
| Clothing/Shoes |
7% |
5% |
7% |
8% |
| Consumer Electronics |
3% |
3% |
4% |
5% |
| Sporting Goods |
2% |
3% |
2% |
4% |
| Other |
16% |
16% |
24% |
25% |
| |
|
|
|
|
Average Overall Planned Spending on Valentine's Day*
|
| |
Male Shoppers |
Female Shoppers |
| |
2006 |
2007 |
2006 |
2007 |
| Average Overall Spending |
$68 |
$92 |
$60 |
$74 |
*Among shoppers planning to purchase gifts for Valentine's Day
Source:
Retail Forward ShopperScape™.
CircuitCity: Enhancing the Customer Experience with Technology-Assisted Selling “Flat-panel TV technology is still new and complicated in the eyes of most consumers. Not helping matters is the rising number of retail channels that are entering the HDTV fray. They can be found at supermarkets, supercenters, warehouse clubs and even home improvement retailers. However, help with sorting it all out is in short supply. Consequently, some players will seek to attract shoppers by appealing to their need for solutions rather than focusing only on products or prices. CircuitCity is banking on some high-tech selling tools that enhance the selling process with personalized solutions to help it stand out in the crowded flat-panel TV sector.”
Nick McCoy , Senior Consultant, Retail Forward, Inc.
For more information on Retail Forward’s Retail Perspectives or the Retail Forward Intelligence System™ call Kathy Clarke at 614-355-4009 or email her at kclarke@retailforward.com.
| 2007 STRATEGIC OUTLOOK CONFERENCE |
Retail Forward Intelligence System™
2007 Strategic Outlook Conference
Retailing 2015: New Frontiers
2015 is only eight short years away, but the environment for retailing will be dramatically different than it is today. What are the top 15 trends that will challenge retailers and suppliers in the years ahead? How can your organization best navigate the new frontiers? Attend THE premier industry event for retail and supplier executives for the answers.
Hundreds of senior executives in strategy, marketing, consumer insights, merchandising, category management, business development and market research, will convene at Retail Forward’s 2007 Strategic Outlook Conference Retailing 2015: New Frontiers.
Join us and learn from the industry’s leading analysts as they explore what lies ahead and help you prepare for the new frontiers of Retailing 2015. Find out:
• How the shopper landscape will evolve
• Where suppliers will find growth
• What new formats and concepts will develop
• Which new technologies will change the balance of power
• What tomorrow’s retail enterprise will look like
DOWNLOAD THE INVITATION
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| What's
Retail Forward ShopperScape™?
Retail
Forward ShopperScape™ focuses on today's consumers and their shopping behaviors.
Retail Forward ShopperScape™ has been fielded since November 2003 to a sample
of 4,000 consumers each month. The survey gathers timely, up-to-date information
about where consumers shop and what they buy. Retail Forward ShopperScape™
is administered through TNS/NFO's online household panel, weighted based to be
representative of U.S. households. For more information, call Kathy Clarke at
614-355-4009 or visit http://www.retailforward.com/retailintel/ss_default.asp.
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