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Research and Markets: This Report Provides a Consumer-centric Analysis of the Mass Merchandise Channel, 2008(M2 PressWIRE Via Acquire Media NewsEdge) RDATE:21082008 Dublin - Research and Markets (http://www.researchandmarkets.com/research/0dcc3c/mass_merchandisers) has announced the addition of the "Mass Merchandisers in the United States 2008" report to their offering. This report provides a consumer-centric analysis of the mass merchandise channel. The focus is primarily upon supercenters (i.e., discount retailers who sell a wide variety of goods, including perishable foods) and club stores, which provide discounted rates on bulk items to customers who have paid a membership fee. The discussion begins with an analysis of how macro-level economic factors such as the rising unemployment rate and faltering consumer confidence are serving to drive increasingly frugal customers into discount stores. Specifically, the report addresses the following questions: -What decision making criteria commonly influence consumer decisions about where to shop? -What is the influence of price and location compared to other factors such as the retailer's commitment to sustainability or the local community? -How is the demographic composition of club store shoppers similar to or distinct from that of supercenters? -Which mass merchandisers do the affluent shop at and why? -What categories have the greatest influence on decisions of which mass merchandiser to shop at? Key Topics Covered: Scope and Themes What you need to know Definition Data sources Consumer survey data Abbreviations and terms Abbreviations Terms Executive Summary The bottom line Mass merchandisers are fueling growth in retail sales, and economic conditions indicate consumers will continue to favor these retailers Competitive context Wal-Mart excels by offering the lowest prices Target emphasizes style and low prices Kmart rebuilding customer base and image Costco, mass merchandiser of the affluent Sam's Club, the everyman's warehouse club Brand qualities Custom consumer groups Market Size and Forecast Mass merchandiser sales are outpacing overall retail sales Total retail sales growth has slowed over the review period Warehouse clubs and supercenters account for the largest share of the mass merchandiser channel Segment Performance Sales through warehouse clubs and supercenters expected to increase by more than a third through 2008 Discount department stores that do not sell food are slowing overall retail sales growth rate Market Background Cost of fuel is driving people into Wal-Mart and other mass merchandisers Increase in global demand for goods, rising fuel prices drives up CPI A drop in household income is compelling people to shop more at mass merchandisers Rising unemployment undermines confidence in the economy Competitive Context Price, location, store cleanliness/layout - critical influencers When money is tight, the price must be right Location, location, location Store appearance is a top concern Customer service One-stop shopping Product mix and brand availability - secondary influencers Popular brands: if you stock them, customers will come Specialty offerings How green is your retailer? Wanted: retailers concerned about the local community Leading Companies Wal-Mart leads mass merchandiser category in terms of sales, but Costco the leader in sales per outlet Wal-Mart dominates the channel, but Target and club stores have high appeal to affluent consumers Costco's super premium offerings/Wal-Mart's low prices to propel future growth Brand Analysis - Wal-Mart Food and beverage offerings propel Wal-Mart's dominance Clothing and accessories is Wal-Mart's most commonly shopped category, but perhaps not the most lucrative Little difference in departments shopped at Wal-Mart by household income Wal-Mart's personal care/household product offerings - another key to success Most influential factors for shopping at Wal-Mart shared by the average mass merchandiser shopper Families with children represent Wal-Mart's core customer base Asian respondents least likely to shop Wal-Mart Brand Analysis - Target Target competes effectively in clothing/accessories, but incidence of key category purchases is far lower than at Wal-Mart Target to make more room for its most lucrative categories More affluent Target shoppers purchase a wider range of categories Target is less likely to be first choice in most categories Cleanliness and layout more important to Target shoppers Young, affluent women represent core Target shopper segments Brand Analysis - Kmart Trends in departments shopped show little change from 2003-07 Departments shopped at Kmart differ notably by age Key consumer cohort: grandparents Even those who tend to favor Kmart over other mass merchandisers rarely cite it as a first choice retailer Kmart falls short on key consumer measures Brand Analysis - Costco Costco attracts affluent customers and performs well on premium products Food/drug department is where Costco excels Age plays a role in departments shopped at Costco is the first choice for food/beverage among frequent shoppers Costco customers motivated by the same factors that drive competitors customers Costco shoppers are an active and cultured group Brand Analysis - Sam's Club Departments shopped varies by household income Sam's Club first choice for food for nearly half of respondents who prefer the store Brand Analysis - BJ's Wholesale Club Despite strong northeastern presence, BJ's can still compete nationally Incidence of shopping food/drug department up since 2003 Younger shoppers surprisingly more likely to visit clothing and cosmetics departments Brand Analysis - Big Lots Big Lots - not your typical mass merchandiser Key customer base includes young adults and families with kids Brand Qualities Costco's premium store brand resonates with shoppers Wal-Mart's pitching to families creates brand affinity Wal-Mart's green offerings create a sense of community Target's chic ads emphasize youth and energy Target focuses on the "whole" consumer Innovation and Innovators Wal-Mart's sustainability mission Costco's appeal to the affluent Wal-Mart cashes in on customers' windfalls In-store media creates new opportunities to communicate value Retailers patronized in last three months Repertoire of retailers shopped Retailers shopped most often Frequency of shopping selected retailers in previous four weeks Departments shopped at discounters Importance of factors in determining which retailer to shop Companies Mentioned: -Wal-Mart Stores (USA) -Target Corporation -Costco Wholesale Corporation -Kmart Corporation -Greenfield Online -SAM's Club -Big Lots, Inc -BJ's Wholesale Club, Inc -U.S. Bureau of Labor Statistics -Food Marketing Institute -McCormick & Company, Inc. -Meijer -Procter & Gamble Company (The) -Starbucks Corporation -Whole Foods Market Inc -Grocery Manufacturers of America For more information visit http://www.researchandmarkets.com/research/0dcc3c/mass_merchandisers CONTACT: Laura Wood, Senior Manager, Research and Markets Fax: +1 646 607 1907 (US) Fax: +353 1 481 1716 (Rest of World) e-mail: [email protected] ((M2 Communications Ltd disclaims all liability for information provided within M2 PressWIRE. Data supplied by named party/parties. Further information on M2 PressWIRE can be obtained at http://www.presswire.net on the world wide web. Inquiries to [email protected])). Copyright ? 2008 M2 Communications Ltd. |