Shoppers have certainly changed since the recession. Having adopted a “new normal” tenet that focuses on cost-conscious, value-driven approaches to spending, today’s consumers are constantly seeking out sales and promotions, comparing prices, and researching products to ensure they get the most bang for as few bucks as possible. Advances in mobile technology over recent years have only made it easier for shoppers to adhere to this mindset. While many thought that declining gas prices would be the shot in the arm to spending in 2015, cautious consumers defied conventional “wisdom” and instead focused on paying down debt and increasing savings. And so the challenging retail environment continues…
Now we find ourselves mid-year 2015 with the back-to-school shopping season upon us. The National Retail Federation reports that shoppers plan to spend about $630 overall on clothing, shoes, supplies, and electronics for their K-12 students this year, a nearly 6% decline from the $669 average planned budget in 2014. Since the recession, consumers’ back-to-school budgets have consistently followed an up/down pattern as parents restocked one year (“up”) and reused backpacks, digital devices, etc. the next (“down”), so this year’s decline in planned spending didn’t exactly come as a surprise. Of course, this doesn’t make marketers’ jobs any easier in what’s already proved to be a challenging year for ringing up retail sales. Digging into our back-to-school insights a bit further, though, can help us uncover which retailers may be better positioned to gain this season versus those who may end up missing out. And for this installment, we’ll focus on the “Big 3” in back-to-school retailing: Walmart, Target, and Amazon.com. Continue reading →
For Brick and Mortar (BAM) retailers, 2014 will prove to be another challenging year. As economists talk of a slow and gradual recovery (latest jobs numbers indicate recovery will be at a snail’s pace), BAMs will be hard pressed to drive topline growth. Based on an evolution in the consumer market fueled by demographic shifts, behavioral changes and consumers’ attitudes toward the economy, retailers with a physical presence will be… Continue reading
When we released our predictions for Holiday Winners and Losers in November, Target was poised for a “win” in a not-so-robust, hyper-competitive season of shopping. With a nice mix of heavy-spending Gen X-ers as well as a base of those covetable Millennials, Target made an attractive value proposition to budget-conscious shoppers: discount shopping without feeling like you’ve shopped at a discounter. In addition, Target’s sought-after in-house brands and exclusive merchandise assortment likely helped the retailer keep at least a few eyes (and wallets) from wandering over to holiday’s biggest winner, Amazon.com.
Fast forward two months, and instead of touting a positive holiday season, Target is attempting to clean up one big mess. The Target name has now become synonymous with words like data breach, identity theft, and [lack of] financial security – a warning and case study for other retailers. But what has become of Target shoppers? Continue reading →
Toys R Us Shoppers Have High Mobile Capacity, Presenting Challenges for the Toy Giant this Holiday Season
Worthington, OH – 11/21/2013
While toys remain one of the hottest holiday gift categories this year, with overall planned holiday spending down from 2012, budgets for Barbie, LEGOs, and other popular children’s toys are likely to shrink, leading shoppers to seek out the best possible prices to ensure a happy holiday season for all this year. Certainly, with consumers adhering to smart shopping strategies honed during the recession, more shoppers will be employing their mobile devices to help aid in purchase decisions than ever before. Therefore, it is essential to know which shoppers are engaging most with their mobile shopping companion and to understand if it’s for better or worse.
Among shoppers who tend to leave Macy’s for Kohl’s when they’re shopping for women’s clothes, about 84 percent say they shop at the discount retailer for its prices. And those shoppers spend about $52 per month on women’s clothes on average at Kohl’s. Shoppers who mostly buy women’s clothes at Macy’s spend just over $76 per month in that category.
Target and Walmart May Have Reason to Fear Amazon.com
Worthington, OH – 6/26/2013
Best Buy’s initiatives to combat showrooming among its customers have been well-documented, and it appears that the big box’s efforts to thwart Amazon.com may be paying off among mobile users. According to Prosper Insights & Analytics’ new Showrooming Ratio, Best Buy may be doing a more effective job keeping wandering shopping carts away from Amazon, particularly compared to its discount peers.
The Showrooming Ratio indicates the likelihood that a mobile user will evaluate a product in a brick-and-mortar store and ultimately may purchase the product via that store’s site or a competitor’s digital channel. When compared to Amazon, Best Buy scored a Showrooming Ratio of Continue reading →
Satisfactory Mobile Shopping Experience Doesn’t Guarantee Repeat Sales
Worthington, OH—April 1, 2013
As retailers address the challenges of omni-channel retailing in today’s increasingly mobile environment, it seems that some of the biggest names in brick and mortar retailing are perhaps doing something right, according to Prosper Insights & Analytics™. Continue reading →
English: Logo of Best Buy, US-based retail chain (Photo credit: Wikipedia)
Best Buy’s problem isn’t shopper traffic, it’s buyer traffic.
Beginning on March 3, the big box will take yet another step to remedy this [very big] problem, when it beings a permanent price matching policy aimed squarely at low-price competitors like Amazon.com and Walmart. For those “showroomers” keeping tabs on prices with smartphones or tablets while testing out Best Buy’s wares in store, this announcement goes a long way to satiating that need for instant gratification that an online retailer like Amazon cannot fulfill – a potential “win” for Best Buy.
However, a big question remains: Will this new price matching policy be enough to restore shoppers’ trust in Best Buy? Continue reading →