The shopper experience study underway by The Integer Group and M/A/R/C Research reveals that electronics and department stores continue to see the largest loss of shoppers and have the worst conversion rate, with about half of shoppers leaving without making a purchase. Mass market retailers such as Walmart and Target are showing a five-point increase from previous months in shoppers who visit them more often — the best conversion rate being with nine out of 10 shoppers leaving the store with a purchase.
The study also shows that consumers are beginning to define value differently. More often consumers are attributing value to price, where the past couple months it was defined as an equal balance between quality and price.
"Across all channels, shoppers continue to report buying cheaper items lately, compared to three months ago," said Randy Wahl, executive vice president at M/A/R/C. "We believe it's safe to predict this trend will continue through the holidays, as consumers are trading down, using purchasing tools like coupons and seeking out cheaper prices."
Study respondents say three out of five brands that best communicate value to them are retailers. Overall, they consider Walmart and Target top-value brands, with Sony, Kroger and Kellogg's being close behind. Consumers also ranked top-value brands within their respective categories, with Nike being on top for clothing and shoes; Suave for cosmetics and toiletries; Honda for cars, accessories and parts; Sony for electronics; and Kellogg's for the food and beverage category.
"The findings suggest that consumers still seem to be buying their favorite brands, but are looking elsewhere for a better price," said Craig Elston, senior vice president of The Integer Group. "For example, a consumer may not want to compromise on a trusted brand such as Nike, so they will decide to buy at Walmart instead of a department store in order to save money, allowing them the comfort of still being able to purchase what they believe to be their top value brand."
