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Welcome to the ShopperScape™ Newsletter July 2005
Findings from the recently published American ShopperScape™ 2005 report underscore how dominant a select number of retailers have become on the retail landscape (Figure 1).
Also of interest among the list of retailers are some surprising companies that permeate the retail landscape without creating as much stir as retailer giants like Wal-Mart, The Home Depot, Target and others. These players offer alternative opportunities for suppliers to reach their audiences. For example, in a past four week period:
Figure 1. American ShopperScape™ 2005 Top Retailers
*Net
of all department stores owned by May Co. Become a member of the ShopperScape™ program and get this report FREE. Contact Kathy Clarke at 614-355-4009 or email her at kclarke@retailforward.com for details. TO PURCHASE American ShopperScape™, CLICK HERE.
The recovery from the late-spring slowdown is being driven by resurgent spending intentions among both Down and Middle Market households. Up Market spending plans for July ticked slightly lower, continuing a falloff from the surge in February and March (Figure 2).
Figure
2. Retail Forward Future Spending Index™
Source: Retail Forward ShopperScape™. The Retail Forward Future Spending Index™ combines households' current assessments of key drivers of spending across income segments, including the job situation, incomes, investments, debt levels, home buying, and seasonal factors to produce a forward-looking indicator of spending for the coming month.
Over half of shoppers are members. Warehouse clubs have grown in popularity as more consumers have turned to them for low prices on products ranging from small housewares and grocery items to big ticket electronics as well as surprising offers such as fine art and caskets. Notably, ShopperScape™ results reveal that the popularity of clubs increases as income increases, because higher-income shoppers are more willing to fork over the membership fees to take advantage of the low prices (Figure 3).
Figure
3. Please select which of the following warehouse clubs,
Source: Retail Forward ShopperScape™. Per-trip
spending about even across income segments. Although
Down Market consumers are few and far between in warehouse clubs,
ShopperScape™ data reveals that lower-income shoppers will
spend about the same as Middle and Up Market warehouse club members.
Due to the ShopperScape™ database's consumer orientation
reported trips are made mostly for personal, rather than business
use (Figure 4).
Figure 4
*Average
amount presented
Figure
5. How much are you spending at warehouse clubs
Source: Retail Forward ShopperScape™.
Front-end of store may becoming vulnerable. Most drug stores not only rely on prescription and over-the-counter medication sales but also on front-end merchandise ranging from photofinishing services to convenience goods. While drug stores remain in the store choice set for quick fill-in purchases from the front end of the store some recent ShopperScape™ findings point out that this area is vulnerable (Figure 6).
Figure 6. On your last trip to a drug store, please select below what you purchased.
Source:
Retail Forward ShopperScape™.
As
the new school year is approaching, parents are thinking about getting
a jump start on back-to-school shopping and focusing more on purchases
for their children. Children's school supplies will see the biggest
increase in planned purchases compared to last month. Also, children's
shoes and even toy purchases are on the horizon. College students
may be purchasing some new supplies for the upcoming year including
home office supplies and small housewares for their college classes
and dorm room. That being said the only category in the group that
shows more intention to purchase year-to-year is craft/hobby supplies
(Figure 7). Figure 7. Going Up
Going Down: Focus Off Apparel and Home this Month As the dog days of summer wear on, consumers show less enthusiasm for lawn care and making apparel purchases than they did last month. Year-to-year comparisons, however, show most of these categories that are softer than last month are about even with last year in terms of July purchase intensions. Exceptions include women's jeans, down from last year and greeting cards, up from last year despite dipping slightly from last month (Figure 8). Figure 8. Going Down
"Consumers
progress along their customer journeys in different shopping modes.
Key ShopperScape™ findings about consumer shopping modes include:
Knowing what primary mode customers are most likely in helps retailers determine how to efficiently meet the needs of shoppers along the customer journey. Knowing shoppers' most likely secondary shopping mode customers can form the basis of relevant differentiation from competition."
For more information on American ShopperScape™ 2005 July 2005 or the Retail Forward Intelligence System™ call Kathy Clarke at 614-355-4009 or email her at kclarke@retailfoward.com.
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Watch
out for bigger getting even better. Over 90% of primary shoppers
can be reached in a month's time through the top 10 retailers
and the trend is expected to continue.
American
ShopperScape™ 2005 Underscores Retailer Dominance
Spending
outlook continues bounce back.
Warehouse
Clubs Gaining Popularity
Year-to-year
spending stagnant for many shoppers.
While the majority of all shoppers are spending about
the same as a year ago at warehouse clubs, notable percentages in
Down and Middle Markets are also spending less than a year ago (Figure
5). Up Market shoppers are bucking the downward trend in spending.
Drug
Store Diagnosis
Going
Up: Back to School Right Around the Corner
American
ShopperScape™ 2005