Consumers Consolidating Shopping
Consumers are consolidating their shopping and placing more relative importance on speed and convenience. According to the American ShopperScape 2006 report, retailers that are not among the top players in their channel are increasingly vulnerable to losing their shares of shoppers as consumers narrow their store choices.
“Consumers’ continuous shopping behavior changes are often driven by factors outside retailers’ control – their lifestyles change, they move, their tastes change – but also factors within retailers’ control,” stated Mandy Putnam, vice president with Retail Forward and author of American ShopperScape 2006. “Change in shopping behavior is shifting the retail landscape gradually but indelibly. Retailers and their suppliers need to track change in order to remain relevant and participate in shaping the retail landscape,” she adds.
American ShopperScape 2006 reports:
- Nearly 60 percent of consumers changed their shopping behavior to some extent this year. Among shoppers in the three major income markets defined by Retail Forward, more Down-Market shoppers (under $22,500) made changes in their shopping behavior and more of them are shopping less often.
- Since 2003, a downward trend has occurred in the number of stores that consumers shop. While rising gasoline prices and online access are contributing to this consolidation, not all channels are suffering equally from the decline.
- More consumers are shopping and spending online. This year, two-thirds of shoppers now shop online whether or not they make a purchase. And a growing percentage is making purchases. Up-Market shoppers ($75,000+) are the most likely income market to be shopping online.
- Pricing changes affect consumers’ shopping habits more than any other factor. When questioned about the factors under retailers’ control that affect consumers’ shopping habits the most, the largest percentage (35 percent) state pricing changes. Store promotions and advertising, changes in merchandise offered and customer service assistance also greatly affect shopping behavior.
American ShopperScape 2006 also explores the Six Shopping Modes consumers are using and which lines of trade they associate with each mode. The report acknowledges that the majority of shoppers participate in low-cost replenishment shopping. However, the speed and convenience shopping mode is becoming a more popular shopping mode particularly with online shoppers while fewer consumers are turning to retailers to help them solve a problem.
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