Cross-Channel Shopping Study 2007

Supermarkets are struggling to keep their share of shoppers as mass merchant hypermarkets, drugstores and other rivals gain in popularity for items once only purchased in more traditional trade channels, according to a new study by Meyers Research Center. The findings are part of Cross-Channel Shopping 2007, which examines the behavior, attitudes and decision-making patterns of shoppers in North America. The research was conducted as an online survey of more than 1,400 subjects, both male and female, who shop in three or more retail channels (out of 17 pre-listed choices). The survey covered background information, attitudinal measures, general shopping behaviors and changes as well as perceptions of various retail formats and retail brands. The sample was managed to reflect geography, ethnicity and affluence proportional to the U.S. population as reported by the U.S. Census Bureau, and to somewhat oversample females. "We've found that, overall, the concept of channel blurring is not a consumer issue -- it is a trade issue," explained Lois Seidl, vice president, Meyers Research Center. "Shoppers are clear on the benefits and drawbacks of the different channels and, depending on their trip mission, one or another format is preferable," she added. "It's the retailers who are waging war to attract and retain shoppers." Key findings of the study reveal how consumer behavior is shifting, particularly with respect to supermarket, supercenter, drugstore and c-store shopping. Highlights include:Drugstores are now the retail format with the highest overall penetration of the population. (See Chart A.)&nbsp Supermarkets have lost some shoppers to superstores/hypermarkets, but they have also managed to increase relevance and utility among retained shoppers, who claimed to make more frequent trips. (See Chart B.) &nbsp One quarter of female shoppers have not been inside a supermarket in the past 12 months.&nbspWhile the reach of convenience stores has declined, loyal customers visit them more frequently than those of any other channel, on average. (See Chart B.) This is partially explained by the type of products people purchase at the c-store, which include cigarettes, coffee, and other routine personal items to transition from one state to another. The purchases also tend to be single sizes. &nbspAt the other extreme of the spectrum are warehouse clubs, where shoppers buying products in warehouse quantities visit with diminished frequency. (See Chart B.)&nbspDollar stores are now in a good position to compete more vigorously against mass merchants and superstores/hypermarkets.&nbsp Some consumers are learning to concentrate shopping in a smaller number of channels. In 2004, consumers utilized 5.2 out of seven general shopping formats in a 12-month period, on average. In 2006, they report making use of only 5.1 of these formats within a 12-month period. Ever so slightly, they are learning to concentrate their shopping in a smaller number of channels, opting for one-stop shopping where possible. Supermarkets, traditional mass merchants, c-stores and warehouse clubs have experience diminished penetration; drugstores, supercenters/hypermarkets and dollar stores have increased. &nbspMore prevalent among exclusive supermarket shoppers is a sense that time is valuable, whereas exclusive superstore shoppers would sooner spare the time and save their coin. Cherry-picking, shopper maven and high-achiever type attitudes are found in heavier concentration among cross-channel shoppers. &nbspJust over half of all shoppers are using both supermarkets and superstores. Among those shoppers using one format exclusively, supermarkets still prevail. With lower household income than men (on average) and greater responsibility for the groceries -- not to mention busy working schedules -- women have been most attracted to the superstore's every day low pricing and one-stop shopping. &nbspAmong consumers who shop at both supermarkets and superstores, visits to the supermarket are more frequent than visits to the superstore and no less frequent than those made by exclusive supermarket shoppers. This suggests that the supermarket is not invalidated or made obsolete by superstores after all. (See Chart E.) &nbspThe retail amenities most shoppers prize are basic civil and social conditions rather than fancy food and upscale service. This sends a powerful message to make sure that store fundamentals do not decline as retailers pursue fleeting trends. (See Chart F.)

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