With Macy’s wrapping up the 2016 holiday season with yet another sub-par performance, it seems the beleaguered department store can sum up its shopper sentiment with one statement: to Amazon we shall go! According to Prosper Insights’ January 2017 survey of more than 7,500 U.S. adults, more than three-quarters (76.7%) of Macy’s core shoppers headed to Amazon.com during the fourth quarter of 2016 (October, November, and December), up marginally from the same period one year ago (76.2%) and several points higher than the overall average for shoppers in general (73.4%). [Core shoppers are defined as consumers who shop “most often” at a retailer for any one of the 14 major merchandise categories that Prosper tracks monthly – unaided, write-in questions.] Continue reading →
With the holiday shopping season entering the home stretch, it seems that Amazon.com will be the Grinch who stole Christmas from competing retailers this year. According to the Prosper Insights & Analytics December survey of nearly 7,000 U.S. adults, more than one in four holiday shoppers (26.2%) indicate they have purchased most of their gifts from the online giant this year, increasing 10% from last year.* Walmart ranks second place with holiday shoppers this year at 14.5%, lagging Jeff Bezos & Co. by almost 50%. Target, Kohl’s, Macy’s, Best Buy, JC Penney, Toys R Us, eBay.com, and Costco follow, respectively, with single digit percentage shares. [*Results are tallied from an unaided, write-in question posed to consumers. Figures include digital as well as brick and mortar locations, where applicable.] Continue reading →
Worthington, Ohio—9/13/2016—Prosper Insights & Analytics™ has launched the E-Commerce Preference Index which is part of Prosper’s Digital Shopper InsightCenter™. A recent analysis of the index suggests that while Macy’s has committed to doing more online, preference is down year-over-year for Macys.com (-15%). Target, another retailer who has ramped up their digital game, is also experiencing performance issues (relatively flat YOY at -1%). On the other hand, Kohls.com has seen a slight uptick in website loyalty since 2015 (+2%). Continue reading →
Building on a strengthening housing market, Home Depot and Lowe’s each recently reported Q2 gains that bucked general shopper trends for traditional retailers, leading many to speculate that the home improvement titans were more immune to current digital pressures, aptly titled the “Amazon Effect.” With Home Depot arguably the stronger performer of the two – I’ve previously detailed the struggles Lowe’s has had in the past with attracting male shoppers as well as with its regional competitor Menards – recent analysis of the digital generation, a.k.a. Millennials, exposes vulnerabilities that Lowe’s in particular faces with this next great generation of spenders. Continue reading →
Guest post by Ron Lunde, Senior Marketing, Advertising Executive & Market Strategy Consultant
Choices = Disruption What must companies do today to generate billions of dollars in revenue, create thousands of jobs, reward investors and sustain the environment —Survive? They have to think about it. They have to make new choices. They have to think outside the box, they have to think in new boxes. They must reframe both their personal and corporate mental & business models. They have to be able to Innovate and Re-Innovate.
Cell phones weren’t introduced by AT& T
Online mapping was not introduced by Rand McNally
Overnight package delivery wasn’t introduced by the U.S. Postal Service
Diet and caffeine-free soft drinks weren’t introduced by Coke
There is a significant lost opportunity and cost inflicted on companies if their management teams are mired in the status quo, teams that don’t or can’t tackle the hard work of Innovation and Re-Innovation. Continue reading →
The recent record-setting acquisition of e-commerce start-up Jet.com has certainly given Wal-Mart Stores its fair share of headlines lately. The deal, which is still subject to regulatory approval, has been heralded as Wal-Mart’s strike back at rival Amazon.com and a jolt to the discounter’s standing in the digital retail arena, vis-à-vis Jet.com’s innovative Smart Cart technology as well as it’s potentially lucrative base of younger (read: Millennial) and more affluent shoppers. However, recent analysis of consumer data collected by Prosper Insights & Analytics suggests that Walmart.com is struggling with deeper, core customer issues that the Jet.com buyout isn’t likely to fix. Continue reading →
According to Fung Global Retail & Technology’s recently released report titled The State of Consumers in the US and China, there are some stark differences between US and Chinese consumers, including in terms of consumer sentiment and online shopping behavior. It is important for marketers to understand consumer spending behavior in the world’s two largest economies, as any movement could tip an already fragile global market.
Deborah Weinswig, Managing Director of Fung Global Retail & Technology, said that key findings from the report include: Continue reading…
It’s been nearly a year since Jet.com, a direct challenger to the Amazon.com e-commerce empire, launched onto the retail scene. And over this relatively short time period, Jet.com has dropped its initial membership model, instead offering free shipping on orders over $35, two-day delivery on common household essentials, and an almost game show style shopping experience where customers unlock new deals and discounts when they waive free returns, buy in multiples, pay with debit cards, or add specific items to their online carts. On paper, this business model seems like a surefire way to gain savings-hungry, free shipping-loving shoppers’ attention. So is Jet.com making inroads with consumers? Or is the site destined to become another blip on Amazon’s radar, à la once hot flash-sale sites like One Kings Lane? For this analysis, we’ll take a look at Prosper Insights & Analytics’ latest consumer insights on Jet.com shoppers – including repeat purchasers – as well as how the Jet.com shopping experience stacks up against Jeff Bezos’ behemoth. Continue reading →
Today’s consumers continue to evolve, which is evident in their shopping behaviors and purchase intentions. Deborah Weinswig, Managing Director of Fung Global Retail & Technology, has weighed in again this month on some of Prosper’s leading indicator analytics including Prosper Consumer Confidence, the Prosper Spending Forecast, the Prosper Impulsivity Score, and the Consumer Mood Index. She also took a special look at Prosper’s recently released Amazon Shopper Preference Index.
Amazon.com Shopper Preference Index: In just two years, Amazon’s Shopper Preference Index has increased 48% from 2014. Weinswig commented, “Amazon has become the first stop on the web to begin most shopping searches, and with an ever expanding product and service offering, it is no surprise. Amazon is still in the early innings in many product categories and Fung Global Retail & Technology anticipates continue reading…
Retailers have become very adept at mining customer transaction files looking for some obscure data point that may help them become more knowledgeable about their customers. However, hidden from these instore shopper analytics are all of the transactions their customers make outside their stores with competitors.
In the recent past, cross shopping was consistent across peers and oftentimes varied by department or customer segment. Some loyal shoppers prefer a certain store for women’s apparel but are more delighted by a competitor for children’s clothing purchases. It may have been a zero sum market but it was, for the most part, pretty consistent and much easier to project. Not so in today’s digitally disrupted market with thousands of online competitors, many not even on the big brick and mortar retailers’ radar screens, each vying for a piece of a store’s shopper’s wallet.
Of course, the biggest and baddest of these is the one everyone knows: Amazon. Continue reading…