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MASS MERCHANDISERS - US - DECEMBER 2017

Published By :

Mintel

Published Date : Dec 2017

Category :

Apparel

No. of Pages : N/A

Nearly all consumers shop mass merchandisers and growth is expected to continue, but loyalty is generally low among mass shoppers, even among some of those who shop the channel the most frequently. As pressure increases from competition outside the channel, mass merchandisers need to address evolving consumer expectations in order to stay relevant. Retailers should leverage their private label brands and continue to offer convenient and flexible shopping options both online and off-line to stay relevant and foster more loyalty among shoppers.

Table of contents
OVERVIEW
What you need to know
Definition
EXECUTIVE SUMMARY
Overview
The issues
Mass shoppers driven by price, resulting in low loyalty
Figure 1: Attitudes toward mass merchandisers, October 2017
Competition is rising outside the channel
Figure 2: Influencers to encourage more shopping, October 2017
The opportunities
Utilize technology to encourage more shopping and combat negative perceptions
Figure 3: Perceptions of mass merchandisers, October 2017
Store brands have potential to engage more shoppers and foster loyalty
Figure 4: Attitudes toward mass merchandisers and influencers to encourage more shopping, October 2017
What it means
THE MARKET WHAT YOU NEED TO KNOW
An optimistic outlook
Supercenters and warehouse clubs are driving growth, but pressure exists from outside the channel
Diverse consumers have diverse needs, but most seek value
MARKET SIZE AND FORECAST
Growth is expected to continue, driven by supercenters and warehouse clubs
Figure 5: Total US sales and fan chart forecast of mass merchandisers*, at current prices, 2012-22
Figure 6: Total US sales and forecast for mass merchandisers*, at current prices, 2012-22
MARKET BREAKDOWN
Supercenters steadily growing, while discount department stores decline
Figure 7: Total US retail sales and forecast of mass merchandisers*, by segment, at current prices, 2012-22
Supercenters are taking share from discount stores
Figure 8: Total US retail sales and forecast of mass merchandisers*, by segment, at current prices, 2015 and 2017
MARKET PERSPECTIVE
Consumers are shopping mass frequently, but pressure from outside the channel continues
MARKET FACTORS
A diverse population creates diverse shopping needs
Figure 9: Population by race and Hispanic origin, 2012-22
Figure 10: Households with related children, by race and Hispanic origin of householder, 2016
Income plays a role in consumers purchase decisions
Figure 11: Median household income, by race and Hispanic origin of householder, 2015
Consumer confidence and DPI on the rise
Figure 12: Consumer confidence and unemployment, 2007-September 2017
Most consumers seek deals and value at mass retailers
KEY PLAYERS WHAT YOU NEED TO KNOW
Target and Walmart are making moves to win customers
Combatting negative perceptions
Simplifying shopping
WHATS IN?
New initiatives by Target and Walmart appear to be luring in shoppers
Figure 13: Retailers shopped Walmart and Target, October 2017
How Target plans to win
Figure 14: Target email campaign, October 2017
Target winning with store brands, environment, and value
How Walmart plans to win
Figure 15: Walmart email campaign, August 2017
Walmart increasing appeal among younger shoppers
WHATS STRUGGLING?
Is cheap a bad thing?
Figure 16: Perceptions of mass merchandisers, select retailers, October 2017
Kmart and Meijer struggle to keep up with the bigger names
Target has low association with easy online shopping
WHATS NEXT?
Keeping it simple for shoppers
Creating new reasons to shop
Figure 17: Walmart email campaign, November 2017
THE CONSUMER WHAT YOU NEED TO KNOW
Nearly all consumers shop mass, and most do so frequently
Grocery, beauty, and clothing are key categories
Price motivates shoppers, dilutes loyalty
Mass merchandisers deliver good value, but have room for improvement in stores and customer service
Consumers want rewards and flexible shopping options
RETAILERS SHOPPED
Nearly all consumers shop mass and more continue to do so online
Figure 18: Retailers shopped, October 2017
Young adults shop the most and they shop around
Figure 19: Retailers shopped, by age and income, October 2017
Parents a key mass customer, even among less-shopped retailers
Figure 20: Retailers shopped, parental status by presence of children, October 2017
Hispanics shopping at major players more than non-Hispanics are
Figure 21: Retailers shopped, by race and Hispanic origin, October 2017
FREQUENCY OF SHOPPING
Frequency is split nearly even between heavy and moderate shoppers
Figure 22: Frequency of shopping, October 2017
Hispanics are frequent shoppers, Blacks are more moderate
Figure 23: Frequency of shopping, by race and Hispanic origin, October 2017
Whos shopping more and whos shopping less?
Figure 24: Frequency of shopping, by gender and age, October 2017
ITEMS PURCHASED
Grocery items, beauty, and clothing are top purchases
Figure 25: Items purchased, October 2017
Women, especially moms, are fulfilling grocery needs at mass
Figure 26: Items purchased, by select demographics, October 2017
Men are turning to mass for their fashion needs
Figure 27: Items purchased, by select demographics, October 2017
Hispanics shopping mass for fashion and decor
Figure 28: Items purchased, by race and Hispanic origin, October 2017
ATTITUDES TOWARD MASS MERCHANDISERS
Competitive prices and product selection lure shoppers to the channel
Figure 29: Attitudes toward mass merchandisers, October 2017
Certain heavy shoppers are less likely to be loyal
Figure 30: Attitudes toward mass merchandisers and frequency of shopping, by parental status, October 2017
Shoppers across income levels are buying store brands
Figure 31: Attitudes toward mass merchandisers, by age and income, October 2017
Blacks are influenced by price, less likely to be loyal
Figure 32: Attitudes toward mass merchandisers, by race and Hispanic origin, October 2017
PERCEPTIONS OF MASS MERCHANDISERS
Most consumers associate mass merchandisers with value and product selection, but some negative perceptions plague retailers
Figure 33: Perceptions of mass merchandisers Part 1, October 2017
Figure 34: Perceptions of mass merchandisers Part 2, October 2017
Figure 35: Correspondence analysis Perceptions of mass merchandisers, October 2017
Young women view Target as more hip and upscale, with good value and products
Figure 36: Perceptions of mass merchandisers Target, by gender and age, October 2017
Older, lower-income consumers feel Walmart offers good value and ample products
Figure 37: Perceptions of mass merchandisers Walmart, by age and income, October 2017
Dads perceive Kmart as having good value and product selection, as well as easy store layouts
Figure 38: Perceptions of mass merchandisers Kmart, by parental status, October 2017
Young men have positive perceptions of Meijers store environment, brands, and customer service
Figure 39: Perceptions of mass merchandisers Meijer, by gender and age, October 2017
INFLUENCERS TO ENCOURAGE MORE SHOPPING
Loyalty rewards and speedy checkouts and deliveries could drive more shopping
Figure 40: Influencers to encourage more shopping, October 2017
Parents, especially moms, want better rewards
Figure 41: Influencers to encourage more shopping, by parental status, October 2017
Self-checkouts and flexible delivery options appealing to younger shoppers
Figure 42: Influencers to encourage more shopping, by age or generation, October 2017
Hispanics want more delivery options
Figure 43: Influencers to encourage more shopping, by race and Hispanic origin, October 2017
APPENDIX DATA SOURCES AND ABBREVIATIONS
Data sources
Sales data
Fan chart forecast
Consumer survey data
Correspondence analysis methodology
Direct marketing creative
Abbreviations and terms
Abbreviations
APPENDIX THE MARKET
Figure 44: Total US sales and forecast for mass merchandisers*, at inflation-adjusted prices, 2012-22
Figure 45: Total US retail sales and forecast of supercenters and warehouse clubs, at current prices, 2012-22
Figure 46: Total US retail sales and forecast of discount department stores, at current prices, 2012-22
Figure 47: US revenues of leading national mass merchandisers, at current prices, 2012-16
Figure 48: Targets US revenues, by merchandise category, at current prices, 2009-13

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