With Macy’s recently reporting a holiday same-store sales decline of 4.7% as well as plans to shutter 40 stores in 2016, one has to wonder if the “Magic of Macy’s” still resonates with consumers. To be fair, the holiday season gave the retail advantage to consumers and was loaded with deep discounts, wild store hours, and, well, Amazon.com. However, competitor JCPenney posted a 3.9% same-store sales gain to the Macy deficit, a reversal of trends we saw during Ron Johnson’s tenure at JCPenney, when Macy’s scooped up JCPenney’s coupon-hungry bargain hunters. So what went wrong at Macy’s over the holidays? A look at consumer insights collected by Prosper Insights & Analytics reveals three key reasons why the hallowed department store went bust during the busiest shopping season of the year: Continue reading →
Consumers may forgive, but they will not forget. Unfortunately in Target’s case, shoppers are slow to even muster up that forgiveness. With its holiday data breach impacting every level of Target’s organization, one must look to the most important piece of the equation – customers – to assess the ongoing damage and pinpoint what’s working for the retailer versus what’s not. For this new analysis on the current state of the former discount darling, we’re examining the point of view from one very influential group of shoppers, women. Continue reading →
As many a marketer will likely attest, too often in today’s retail environment consumers’ final decision in the buyer process comes down one little five letter word: price. Shoppers, armed with their mobile devices, maintain a direct connection to the best deals, promotions, coupons, and offers with just a tap of their fingers, many times giving shoppers an intelligence edge over retailers competing for those buying dollars. In this age of smart consumerism, what’s a retailer to do?
While it remains to be seen how (or if) the 2013 Marketplace Fairness Act will impact sales for Amazon.com, what we do know is that the online leader seems to have a loyal constituency in its Amazon Prime Membership. For a $79 yearly fee, this group of elite shoppers receives free two-day shipping on eligible items and access to Amazon’s Instant Video streaming service as well as the Kindle Lending Library – and CEO Jeff Bezos is keeping the perks coming.
The risk to competitors is fairly obvious; this shopper coalition gives Amazon a top notch spot in their retailer consideration sets. Our intel tells us that Prime members’ propensity to shop Amazon.com is about double that of the general population for several major retail categories, including Women’s and Men’s Apparel, Shoes, Electronics, Sporting Goods, Linens and Bedding, and Health/Beauty Care. Of course, this doesn’t mean that Prime members are shopping Amazon exclusively or that they shun more traditional brick and mortar retailers. So let’s take a look at who these shoppers are, why they are so valuable to Amazon, and which retailers may be facing a Prime threat. Continue reading →