Prosper Insights & Analytics™, a leading provider of business intelligence solutions, has released a new report available for purchase titled, “Prime Risk: A Retailer’s Guide to Understanding Amazon Prime Members.”
Over the past several years, as Amazon.com has grown its market share, loyal customer base, and product lineup, it seems that many competing retailers and brands underestimated – or were in complete denial of – Amazon’s impact on the retail industry and shifting shopping habits as consumers increasingly became comfortable purchasing online. Amazon is no longer an abstract digital pest for retailers – it’s a full-blown disruption to the industry as a whole. Shoppers, who are increasingly becoming Prime converts, LOVE the change, which in turn threatens the livelihood of every other retailer in the industry. As they gravitate toward Amazon in search of products, information, and other digital services, traditional retailers are left to compete for shrinking share of consumers’ wallets.
For retailers no longer in denial about the effect Amazon has had on both shoppers and the retail industry, this report is to serve as a guide to understanding Amazon Prime from the point of view of consumers, identifying which retailer shopper groups and formats are most at risk for losing customers to the Amazon vortex. 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 →
Forgive me if this sounds archaic: home improvement is still a man’s world. Despite the fact that many “Honey-Do” lists are evolving into “Honey-I-Can-Do” mantras thanks to the increasing influence of Pinterest, blogs, and an age of “look what I did” D-I-Y social sharing, the female segment in the home improvement category is still trailing her male counterparts.
Case in point: the Home Depot upswing. The retailer’s 7% comp store sales increases in Q4 2012 eclipsed the 1.9% increase posted by rival Lowe’s. Home Depot’s stock has also become a star performer as of late, recently reaching a 52 week high, once again outpacing Lowe’s. With the housing market and our Happiness Score – a leading indicator of key economic markers, including housing starts – perking up, it seems that Home Depot is better positioned to take advantage of the possible housing spoils to come this spring.