The Real Story Behind Macy’s Sales Declines and Store Closures, Part 2

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In the previous post, we uncovered some of the driving factors behind recent sales declines at Macy’s, one of America’s oldest and most iconic retailers. These struggles have resulted in two announcements of mass store closures within the past year.

InfoScout analyzed the shopping occasions of 12,801 Macy’s shoppers between June 2015 and June 2016, using our proprietary mobile apps to capture physical and digital receipt images of customer purchase data. We also supplemented this data by surveying 499 Macy’s shoppers to get firsthand accounts of their experiences and find out why Macy’s is losing share of wallet in its physical stores.

Our research uncovered a number of revealing facts and trends about Macy’s shoppers, which we discussed in Part 1:

  • 37% are shopping less frequently at Macy’s.
  • 32% haven’t shopped at Macy’s within the last six months, causing Macy’s to miss out on key seasonal purchase cycles.
  • The top frustration of less frequent Macy’s shoppers is high prices, cited by 50% of shoppers.
  • Other frustrations include store location (23%), customer service (15%), product selection (12%), and poor store organization and merchandising (10%).

 

Purchase data from actual Macy’s shoppers shows that the challenges facing Macy’s go deeper than “people would rather shop online.” Competition from e-commerce is certainly a challenge for all brick-and-mortar retail stores, but InfoScout data proves e-commerce is far from the only challenge that is causing Macy’s share of wallet to shrink.

Explaining Macy’s Low Share of Wallet and Where Their Customers Are Going

Of 21,776 panelists who purchased merchandise in the apparel, electronics, entertainment, health and beauty, sports, and toys categories, 15,494 purchased these products at Macy’s stores. That translates to a closure rate of 71%. But as we look further down the leakage tree, we see that Macy’s brick-and-mortar stores only own a 6% share of wallet.

If Macy’s owns 6% share of wallet, who’s getting the other 94%? The top two beneficiaries of Macy’s struggles are mass retail giants Walmart and Target at approximately 17% and 16%, respectively, followed by Best Buy (7%), Kohl’s (6%) and Costco (5%). Only 6% of purchase dollars are going to Macys.com.

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The Amazon effect is not as significant as one might expect, with the online retailer earning less than 4% share of wallet for Macy’s brick-and-mortar shoppers. However, when InfoScout analyzed the purchase data of Macy’s lapsed shoppers – those who hadn’t shopped at Macy’s in the last six months – we found that these shoppers increased their spend at Amazon by 10% after they stopped shopping at Macy’s.

While e-commerce is certainly a challenge, the data mentioned previously shows that more Macy’s customers are shopping at other brick-and-mortar stores than online. InfoScout confirmed this trend in a survey of Macy’s customers, who were asked where they have been shopping or will be most likely to shop for items that they would normally purchase at a Macy’s store.

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52% said they would turn to non-department stores such as Walmart, Target or Kohl’s, while 33% said they’ll go to other department stores such as Nordstrom, JC Penney or Neiman Marcus. 23% said they would go to apparel retailers such as Gap, H&M or Forever 21.

Of course, e-commerce is getting its fair share of business from Macy’s shoppers. 31% of survey respondents said they’ll shop at Amazon. 19% will shop at another department store website, 18% will shop at an apparel retailer website, and only 16% will go to Macys.com. This would indicate that the frustrations experienced in Macy’s stores are causing many consumers to abandon Macy’s completely, both in-store and online.

What Can Macy’s Do to Stop the Bleeding?

When shoppers were asked what would motivate them to shop at Macy’s more often, 55% said they could be swayed by easy-to-use coupons and promotions. Better product selection came in second at 15%. 10% would be encouraged by better everyday value on merchandise.

When those who claim to be shopping less at Macy’s were asked how they would feel if Macy’s closed their stores, 54% said they wouldn’t care. 41% would be sad and miss Macy’s. 5% said they would be happy and that it’s time for Macy’s to close. The sentiments of those who shop at Macy’s as often as they always have are more positive. 61% would be sad, 37% wouldn’t care, and only 2% would be happy about it.

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Clearly, the majority of frequent Macy’s shoppers are loyal to the brand, as are a large percentage of those who are shopping less frequently at Macy’s. Collectively, these customers represent a major turnaround opportunity for Macy’s.

For shoppers who are frustrated with pricing and location, offering targeted promotions and discounts for both in-store and online purchases could drive incremental purchases. Also, issues related to selection and merchandising must be addressed. While a large percentage of Macy’s customers are shopping online, not enough are shopping at Macys.com. By delivering a seamless, omni-channel experience, Macy’s can win more online dollars.

Simply attributing store closures and sales declines to the growth of e-commerce is an incomplete, oversimplified rationalization. While a 16% closure rate and 6% share of wallet are disappointing, they also represent tremendous upside for a legendary brand like Macy’s to increase those numbers. Macy’s and other retailers that are struggling with in-store performance need to dig deep into customer behavior and purchase data and adapt accordingly to retain customers and grow sales.
 
InfoScout uses proprietary technology and targeted surveys to provide valuable insights into shopper behavior, purchasing decisions and industry trends. Contact us to schedule a free demo and learn how InfoScout can help you build revenue and enhance your brand.

 

Lessons from Sports Authority, Part 2: Where Consumers and Retailers Go from Here

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In the previous post, we discussed the main reasons for the downfall of Sports Authority, which announced earlier this year that all of its stores would be closed and liquidated. While industry analysts focused on the company’s debt load, InfoScout focused on actual Sports Authority customers.

Using our proprietary mobile apps to capture receipt data and analyze more than 17,000 shopping occasions, as well as a survey of more than 300 Sports Authority customers, we discovered three core drivers behind the company’s demise – high prices, poor selection, and a failure to attract Millennials.

Now that we have a better idea of what went wrong, where will Sports Authority customers take their business? What can retailers do to earn their business?

We’ve Seen This Movie Before

Circuit City was the second largest electronics retailer in the U.S. when it began closing stores in 2008. There were three sets of open arms waiting for Circuit City customers – Walmart (the mass discount retailer), Best Buy (the largest electronics retailer), and Amazon (the emerging online retailer).

Similarly, the key players looking to fill the void left by Sports Authority are mass discount retailers Walmart, Target and Kohl’s, Dick’s Sporting Goods, which is the leading sporting goods retailer, and Amazon, which is now the dominant online retailer. All have the pricing, selection, and Millennial-desired omni-channel capabilities to avoid the pitfalls that doomed Sports Authority.

Where Do Customers Go from Here?

When customers were asked what they purchased from Sports Authority, the top product categories were athletic apparel (64%), footwear (48%) and sports equipment (45%). They were followed by sports team apparel (19%), outdoor gear (16%) and fitness items (15%).

Regardless of product category, the largest percentage of these customers (68%) will now go to other sporting goods stores such as Dick’s Sporting Goods, Academy Sports, and Cabella’s. When asked to choose just one shopping destination, Dick’s Sporting Goods, chosen by 58% of respondents, was the overwhelming winner.

This data is supported by InfoScout’s analysis of actual purchase behavior, which shows Dick’s as the most frequently shopped competitor of Sports Authority. Nearly half (46%) of Sports Authority customers will shop at Amazon, the second highest ranked retailer. Only 37% will go to mass retailers such as Walmart, Target and Kohl’s.

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Fifty-three percent of survey respondents completely or somewhat agreed with the following statement: “In about the next five years, there will be no sporting goods retail store locations left because anything you need you can just buy on the internet.” Although we don’t know how accurate consumer crystal balls are, sporting goods product categories are ripe for channel disruption.

For example, brands such as Nike are benefiting from direct-to-consumer strategies. Although Sports Authority customers are or will be shopping at Target.com (40%), Walmart.com (32%) and DicksSportingGoods.com (30%), many are also shopping at brand sites such as Nike.com (36%), UnderArmour.com (20%), Adidas.com (11%) and Lululemon.com (5%).

Customers know that they can go directly to the brand. Strong brands such as Nike have created destinations for customers, both online and in-store, and are looking to rely less upon mass retail distribution channels.

Loyals, Occasionals and Millennials

Our research found that the most loyal Sports Authority customers, those who shopped at Sports Authority at least five times in the past year, are likely to go to retailers such as Dick’s Sporting Goods and Academy Sports.

Occasional customers, those who shopped at Sports Authority fewer than five times in the past year, are shifting more spend online, making Amazon the winner for this group. However, “occasionals” are spending 6% less overall, while spending among “loyals” is down just 1%.

Digging deeper into data related to the all-important Millennials, a group that Sports Authority failed to win, our research shows that Millennial loyals are spending significantly more (23%) at both Amazon and sporting goods stores. The largest increases are at Amazon (8%).

Millennial occasionals are spending 6% less overall, but 5% more at Amazon. As a result, brick-and-mortar retailers should be asking two important questions. First, how can we capture a greater share of Millennials who were occasional Sports Authority shoppers? Second, how can we convert those Millennial occasionals into loyals?

The Final Verdict

The most loyal sporting goods shoppers value the ability to find specific items and the expertise that a specialty retailer can provide. As a result, retailers like Dick’s Sporting Goods and Academy Sports, with their established store footprints, fair pricing and ample selection, are well-positioned to benefit from Sports Authority’s loyal customers.

For more generalized needs, such as apparel and footwear, online channels are likely to continue to grow and thrive. Millennials are headed in this direction. Brick-and-mortar retailers need to deliver a consistently superior shopping experience across all channels to maintain in-store sales and avoid losing online sales to Amazon and brand sites.

Sixty-one percent of survey respondents are sad about the closing of Sports Authority. Thirty-six percent don’t care. Three percent are actually happy about it. However, all of them need alternatives. Some have already found them.

Retailers need to take a hard look at InfoScout data, assess their strategies, bring their “A” game to avoid the same fate as Sports Authority, and successfully adapt to the evolving demands and behaviors of the end consumer.

InfoScout uses proprietary technology and targeted surveys to provide valuable insights into shopper behavior, purchasing decisions and industry trends. Contact us to schedule a free demo and learn how InfoScout can help you build revenue and enhance your brand.

InfoScout is one of America’s Top 100 Fastest Growing Companies

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3 years, 3600% growth.  As you might imagine, a lot of things have to go right to experience the kind of growth that landed InfoScout at 84th among this year’s Inc. 5000.

The first among the dominoes to align for InfoScout was a large market of consumer goods and retailers, distraught by a lack of innovation among the incumbent consumer panel providers for nearly 30 years.  These clients already knew that there had to be a better way to understand the drivers of change in retail sales and market share, and they were just waiting for a disruptive start-up like InfoScout to come along.

Second, was a sea-change of technological advancements including more powerful smartphones, cloud computing, computer vision, crowdsourcing, and machine learning – all of which were necessary for InfoScout’s approach to work.

Next, we had to assemble an engineering team capable of harnessing all of these technologies to solve a seemingly endless series of challenges in a unified way. My CTO and co-founder, Jon Brelig, built a team that would engineer the diverse components necessary for success, including a portfolio of consumer mobile apps, a scalable transcription pipeline, and a SaaS analytics platform to derive insights from the data. And what better place to build this team than San Francisco – the epicenter of tech innovation.

Fortunately, key leaders at Procter & Gamble and Unilever were willing to bet on our nascent technology back in 2012 – before we’d even launched our first product – or we wouldn’t have been eligible for the 2016 Inc. 5000 list.  We must have done something right, because in every year since, our growth has been fueled more through deeper relationships with existing customers than by adding new clients.  The tremendous revenue growth we’ve seen comes entirely from our customers – a fact we don’t take lightly, as it only raises the bar in terms of the value we must deliver in exchange.

To rise to that occasion, we’ve recently benefitted from a series of partnerships that enable us to deliver new ways of measuring the true incrementality and ROI of advertising campaigns, retail promotions, new product launches, and brand building. With their help we hope to finally render this adage irrelevant among consumer brands: “I know that 50% of my marketing is working – I just don’t know which half.”

Finally, for all of the amazing technology behind InfoScout, we know that we could not achieve nor continue this growth without a great team of people who continuously find clever solutions to complex problems, who focus on their collective impact, and who strive to delight our customers in every interaction. Thank you, Team InfoScout!

(P.S. – Special thanks to Ajay Agarwal and Indy Guha of Bain Capital Ventures, David Frankel of Founder Collective, and Andre Gharakhanian of Silicon Legal Strategy.  You’ve been great partners at every step along the way.)

Lessons from Sports Authority, Part 1: What Went Wrong?

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After nearly 30 years as a sports retail powerhouse, Sports Authority will soon cease to exist. Burdened with $1.1 billion in debt, the company filed for bankruptcy protection in March. After failing to secure financial assistance, Sports Authority announced in May that all 463 of its stores would be closed and liquidated by August.

The demise of this once-great retailer begs a simple question. What went wrong?

The company admitted that it had been slow to “react to changing consumer trends.” The crushing debt that Sports Authority has carried since being purchased by a hedge fund 10 years ago surely didn’t help. Various analysts and commentators have weighed in on the matter, pointing to everything from a dull shopping experience to a lack of uniqueness.

InfoScout decided to get the real story from the people whose experiences and perceptions matter most – actual Sports Authority customers.

Using receipt images of actual customer purchase data captured by our proprietary mobile apps, we analyzed more than 17,000 Sports Authority shopping occasions during a 52-week period. We also conducted a survey of more than 300 Sports Authority shoppers.
The problem clearly wasn’t customer service, which is an easy scapegoat when things go south. 56% of survey respondents rated Sports Authority’s customer service as very good or excellent. Only a handful said customer service was fair (8%) or poor (2%).

Our research revealed three primary reasons for Sports Authority’s downfall.

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You Want Me to Pay What?

When asked to identify issues or frustrations experienced while shopping at Sports Authority, nearly half (49%) of survey respondents pointed to high prices, which was more than three times higher than the next highest contributing factor. Not only were prices deemed too high, but consumers said coupons didn’t work for the most popular brands, making them virtually useless. Unfortunately, it’s not uncommon for retailers to push out coupons and special offers without ensuring their relevance to shoppers.

Price transparency on the web allows people to compare prices in a matter of seconds. Many shoppers know what they should be paying before they walk into a store. Sports Authority failed in large part because its pricing was not competitive – and its customers knew it.

I Still Haven’t Found What I’m Looking For

30 % of respondents said they were frustrated by merchandising issues, including a lack of desired products or brands (14%), products in the right size (11%), and overall selection (5%).

The reality is that we live in an environment of a rapid convergence of channels, with limitless aisles that can be instantly accessed from our mobile devices. Failing to fully understand and deliver the correct merchandise is a fatal mistake for retailers.

The continued fragmentation of our retail environment, customer tastes and general trends makes the merchandising function more and more complex.

Missing with Millennials

Millennials now represent the largest segment of the U.S. population. According to customer data generated by InfoScout mobile apps, Sports Authority hadn’t done nearly enough to win over Millennials. Among loyal Sports Authority customers – those who shopped at Sports Authority at least five times per year – just 22% were Millennials. Gen Xers (66%) outnumbered Millennials three to one. This was a major miss that clearly had an impact on the company’s bottom line.

InfoScout data and insights clearly show us that high prices, poor selection and the failure to attract Millennials represented a three-headed monster that Sports Authority was unable to overcome. In the next post, we’ll discuss where Sports Authority’s former customers are planning to go for sporting goods and apparel and what can be done to earn their business.

How Politics Can Shape Our Grocery Shopping Behavior

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Although they wave the same American flag, Democrats and Republicans often hold clashing opinions on a seemingly infinite number of issues, such as immigration, health care reform, and global warming. Knowing someone’s political identity makes it easy to predict which side they’ll adopt in these debates. But can this information also be used to predict which products shoppers will buy at the grocery store?

 

To explore this idea, InfoScout identified over 3,000 panelists who agreed to share their data on the celebrities and public figures they follow on Facebook. Panelists who follow liberal pages like Hillary Clinton were coded as Democrats; Trump followers were coded Republican. Afterwards, we compared the purchase behavior of the Democrats and Republicans using our Household Affinity report. This tool helps us determine which brands and categories most strongly differentiate the two shopper groups.

 

Below, we summarized our findings according to which brands/categories are disproportionately bought by either Democrat and Republican households, as well as the magnitude of this effect (i.e. higher numbers represent greater political skew). Percentages were determined by calculating the relative ratios of Liberal and Conservative households purchasing a particular brand or category. Specifically, we divided the % of Liberals buying and the % of Conservatives buying, with the higher percentage in the numerator. The values can be interpreted as, “Liberals are 37% more likely to have purchased a Kashi product in the past year compared to Conservatives.”

 

The data suggest that progressive and traditional values extend not only to our political beliefs, but to our grocery baskets as well. Republican households tended to buy family-oriented brands (such as Malt-o-Meal and Capri Sun) as well as traditional American foods (like white bread and sugar cookies). By contrast, Democrats tended to over-index on products that are positioned as more healthful and organic, such as Kashi and kale. Democrats also skewed towards products that are more culturally diverse, like flatbread, jalapeños, and mangos.

 

Finally, we also found that the Altoid mints brand was among the top “bipartisan products”. In other words, Altoids are purchased at nearly identical rates between Democrats and Republicans. Perhaps the greatest lesson learned from this exercise is that true political cooperation may finally be achieved by focusing on what makes us similar rather than different from each other. This summer, consider reaching across the aisle and offering your fellow American a cool, refreshing mint.

Graduates Win with Aunts and Uncles


 
Graduation Season is here! The time to celebrate a lifetime of accomplishments and the beginning of a promising new stage. Parents couldn’t be prouder, Grandma is definitely going to cry, and aunts and uncles apparently get generous.

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According to one of our recent surveys, more graduation gifts are purchased for nieces and nephews than anyone else. This makes sense, especially in bigger families where people likely have have more nieces and nephews than sons or daughters. So what are they gifting?

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Graduates received mostly gift cards this year, with greeting cards and actual cash also among the popular gift-giving options. Other gifts like coffee and cars—much needed elements of adulthood—get honorable mentions. Female grads were more likely to receive flowers, while male grads were more likely to receive electronics.
 

When deciding what to gift a graduate, the number one consideration was “something that would be useful” in the next stage of their life. One curious data point also related to this decision is that uncles and aunts were more likely to ask the family and friends of the grad for gift recommendations, while mom and dad were more likely to ask the grad directly.

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Gift card purchasers are twice as likely to buy a greeting card in the same shopping trip during graduation season than during the Christmas season. The difference suggests that shoppers try to get gift and greeting cards in the same trip for graduates, while spreading the purchase of those two categories across more trips during the holiday period.

 

Another tip for all retailers out there: an overwhelming 61% of shoppers return to buy their graduation greeting cards at the same retailer where they bought their Mother’s Day card. So if you’re capturing that Mother’s Day shopper, you’re more likely to capture the graduation greeting card shopper.

 

As to which retailers people prefer for purchasing their greeting cards, the usual suspects of Walmart and Target show up on top. There is also a considerable showing from the dollar channel (Dollar Tree and Dollar General), which achieved significantly high unit sales but underperformed in dollar sales, a common trait for the channel due to its usually lower price points.

 

In summary, parents need to step up their gifting game. Spoiling uncles everywhere are going for the cash game while parents skew towards the traditionally more emotional and thoughtful greeting cards.
 
As a marketer, are you interested in knowing more about seasonal gifting in your category or other aspects of shopping behavior? Are you curious about which brands of gift cards these graduates received? Get in touch with us at contactus@infoscoutinc.com and we’ll be happy to help you out!

Procrastinators Are Not Who You Think They Are

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Different groups of people purchase in different ways. It is usual to study shoppers based on criteria like geo-location, demographics, or previously purchased products. But how about looking at their purchase behavior based on how timely they are?

 

Having a purchase panel that you can survey on-the-fly makes shopper group creation a breeze, enabling you to combine claimed data from surveys with behavioral data from receipts. In this particular case, we identified shopper groups of “early birds” and “procrastinators” by asking if they had or had not filed taxes by April 1st.

 

Procrastination is often associated with young millennials. A quick attempt at a google search would show that much.
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To our surprise, nothing could be farther from the truth. Who were the procrastinators? The profile of the procrastinator turned out to be mostly Gen-Xers (50.4%), at the extreme ends of the income spectrum (below $25k and above $125k) with no children. One finding that did align with the laid-back stereotype of the region, is that people on the West coast (47.4%) procrastinate more than those in other regions.

 

What do their receipts tell us about their purchase behavior? Procrastinators likely often find themselves in situations where they need to pick up something quickly from a Drug Store or Convenience Store. Meanwhile, early birds seem to plan their purchases better and tend to buy more at the mass merchandiser channel.

 

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In a curious case of routine dragging, the procrastinators were also more likely to make their shopping trips after 5pm while the early birds preferred to get their shopping done before 3pm.

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When it comes to the brands they purchase, procrastinators may not be buying the brands you might normally associate with slackers. Instead, they showed higher affinities to health-conscious brands like Kind and Nature’s Bounty. Early birds were more likely to purchase brands like Nutella, Totinos, and Funyuns, which, although delicious, are not necessarily associated with a healthy diet.

 

Another curious behavior we noticed while looking across categories was that procrastinators drag their feet when buying Christmas cards—making this purchase the same week of December 25th, while early birds were already done two weeks before.

 

When looking at the household category, it seems like the procrastinators make an effort to turn a new leaf with a New Year’s resolution to clean the house, but they revert to their old habits fairly quickly as they begin spring cleaning later than the early birds.
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Some takeaways for marketing execution are to plan in-store events and promotions earlier in the day to appeal to early birds and later in the day to reach procrastinators. The latter are often late to the game around holidays and other important retail events, with the only exception being Valentine’s Day. Capturing early-week holiday promotions is important, but there is a secondary opportunity when this type of shopper finally makes it to the store.

 

In summary, make sure to re-examine how you perceive generations overall and give extra thought as to how they interact with your brands and categories.

 

As a marketer, are you interested in the “Why” behind some of the behaviors discussed here? Are you curious about which brands in your categories are favored by procrastinators or early birds? Get in touch with us at contactus@infoscoutinc.com and we’ll be happy to help you out!

Spring Cleaning: Scrubbing Deeper with Household Products Purchase Data

Spring Cleaning is a time when consumers use their daily household cleaning products to scrub deeper than just the surface. This holds true for panel data as well; sometimes the most impactful insights are hidden from plain view, waiting to be discovered with a little extra elbow grease. For example, take a look at some top-line metrics for common products in the household category.

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This view gives us a quick bird’s-eye view of how each subcategory is performing. For example, bath tissue has a relatively high basket size of about $95, suggesting that it’s purchased on large stock-up grocery trips. Bath tissue also has the highest purchase frequency, meaning that the category is purchased (by each household) an average of 7 times per 52 week period.
 
Interestingly, dish detergent and fabric softener have almost identical purchase frequencies of 4.0 and 4.1 (respectively). However, these numbers are just averages. They don’t tell us anything about the underlying distribution. Datasets with similar means but different distributions can be problematic; imagine if we treated {0, 5, 10} the same as {4, 5, 6}. An insights professional looking to understand these categories more thoroughly will want to scrub a little deeper past the surface.
 
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A shopper histogram is the perfect complement to shopper metrics because it takes the averaged metrics and shows you the full distribution of the data. The graph above paints a bigger picture than the averages alone for these two categories. Here, we see the underlying distribution for each category’s purchase frequency. Fabric softener is a divisive category; shoppers either buy it all the time (8+ times per year), or very rarely (just once per year). By contrast, dish detergent has a steadier distribution; more shoppers fall near the mean (buying 4 times per year).

 

Why is this important? As a marketing manager, it’s easy to make assumptions based on data averages. Shopper metrics alone would lead you to believe that two disparate categories have identical purchase cycles. In reality, fabric softener has two shopper segments of ‘extremists,’whereas dish detergent has fewer ‘extremists’ and a greater number of average, once-per-quarter shoppers. It’s easy to miss these crucial segments by glancing at a bird’s-eye view of the data.
 
Want to ‘scrub’ even deeper? Are you curious about which brands in the household category are favored by your shoppers? Get in touch with us at contactus@infoscoutinc.com and we’ll be happy to help you out!.

America Loves ‘Click and Collect’

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Recently, our friends over at CNBC asked us to take a closer look into services that allow people to shop online and then pick up the items in-store—also known as “Click and Collect.” Through a survey to more than 1,000 American shoppers, InfoScout determined that of the 34.6% of Americans who have tried Click and Collect, half of them (49%) tried it for the first time in 2015. As CNBC concluded, “Like it or not, ‘click and collect’ is here to stay“.

 

Although two-thirds of America have yet to try this type of service, its staying power is clear because those who use it, love it. Fifty-four percent of shoppers who have used this service, used it during the 2015 holiday season. Along the same lines, 95% of shoppers who used this service during their 2015 holiday shopping indicated that they were very likely to use it again for their 2016 holiday shopping (vs. only 1.6% who said they would be unlikely to do so again).

 

This shouldn’t come as a surprise, since the overall satisfaction ratings on the service are strong. Jaron Waldman, CEO of San Francisco based Curbside, a click and collect app, tells us that across his clients (which include the likes of Target, Best Buy, CVS and Sephora) “56% of people who try it come back and order again”. He also pointed out that many of the shoppers on the Curbside app are also members of Amazon Prime, but they “like the flexibility of picking it up when and where they want, in under an hour”.

When asked about the reasons why they chose Click and Collect for their purchase, one word really stood out among our survey respondents open-ended answers: convenience.

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“Cheaper than shipping it to my house” – Ann from Cincinnati

“Easier and then I was guaranteed to get the item I wanted without any hassle” – Jessica from Tulsa

“Faster than having it shipped to the house but still able to get the online deals.” – Chris from Seattle

 

Even though love is in the air, the Click and Collect trend is still far away from completely replacing regular grocery shopping trips. More than half of all respondents who used Click and Collect throughout 2015 reported only using it between two and five times when, on average, they do 72 fill-up or stock-up trips over the course of a year.

 

You may be asking yourself: Who are the retailers capitalizing on the trend? Topping the list with a commanding lead was Walmart (where 69% of respondents indicated they’ve used Click and Collect service, followed by Target (34%), Kohl’s (17%), and JC Penney (15%).

 

About the Data:
For this study, we surveyed 1,000 of our panelists who have used a “click and collect” service. InfoScout tracks the purchases of more than 350,000 Americans who report more than 300,000 shopping trips every day through our Receipt Hog, Shoparoo, and Receipt Lottery apps.

Why Some Shoppers are Opting Out of Black Friday This Year

 

With our early reading showing a sales decline in stores this Black Friday, we wanted to understand why some shoppers chose to stay home this year after braving the Black Friday mayhem in 2014.

We scoured our database of shopping trips from our consumer panel of over 300,000 Americans to isolate people who shopped on Black Friday in 2014 but failed to make any Black Friday trips in 2015. While this group of “defectors” may have had the patience last year, over 40% decided the crowds and lines were just too much this year.


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We also looked at which retailers these Black Friday defectors felt compelled to shop last year to understand who’s losing out on their Black Friday $’s in 2015 and found out that Walmart, Target, Costco and Sam’s Club lost the most and may be responsible for the negative shopping experiences that drove them to sit on the sidelines this year.

 

So, this begs the question. If they’re not shopping on Black Friday, when do they plan on doing their holiday shopping? It turns out about half plan to do more online gift buying than last year, and specifically, 32% are looking forward to shopping online tomorrow during Cyber Monday.

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Here at InfoScout, we’ll continue to monitor on and offline shopping trips throughout the season, but the early signal is clear. Black Friday’s importance continues to wane as the holiday deal landscape becomes more fragmented and digital.

 

About the Data

These insights were powered by InfoScout’s ability to trigger real-time surveys based on observed shopping behavior. The data in this article was sourced from a survey completed by 101 of our 300,000 active panelists, triggered on Saturday, 11/28/2015 to shoppers who made Black Friday purchases in 2014 but did not shop on Black Friday 2015 (11/27/2015).