Transcript Document

ANNUAL SHOPPER REVIEW: WALMART
Robin Sherk
Director, Retail Insights
Rachel McGuire
Senior Analyst
November 2013
Copyright © 2013 Kantar Retail. All Rights Reserved.
501 Boylston Street, Suite 6101, Boston, MA 02116
(617) 912- 2828
[email protected]
No part of this material may be reproduced or transmitted in any form or by any means, electronic or
mechanical, including photography, recording, or any information storage and retrieval system now known
or to be invented, without the express written permission of Kantar Retail.
The printing of any copies for back up is also strictly prohibited.
Disclaimers
The analyses and conclusions presented in this seminar represent the opinions of Kantar Retail. The views
expressed do not necessarily reflect the views of the management of the retailer(s) under discussion.
This seminar is not endorsed or otherwise supported by the management of any of the companies covered
during the course of the workshop or within the following slides.
© Copyright 2013 Kantar Retail
Executive Summary: Walmart Shopper Review
Spending intentions have improved in 2013, though Walmart
has not seen these gains translate into increased shopper
traffic or basket.
A sizable proportion of shoppers still feel pressured, as 31% continue to restrict their
budgets, driving deal-seeking and trading-down behaviors. Conversely, value
discounters and online-only retailers’ (i.e., Amazon.com) reach continues to expand,
heightening competition with Walmart. Shifts to these channels also reflect Walmart
shoppers’ eroding interest in a one-stop shop and rising attention to promotions.
$
Perceived price leadership is generally strong, as assortment
refinement is an opportunity.
While Walmart shoppers feel broadly satisfied with its low prices, the retailer faces
greater rivalry for leadership in edible grocery versus other consumables categories.
Many also feel that the product selection could be better tailored to their tastes, which
supports the need for this continued area of focus at the retailer.
Neighborhood Market’s and Walmart.com’s shopper reach is
mounting as the Supercenter’s penetration falls, despite its
ongoing footprint expansion.
These new growth drivers speak to the importance of advancing Walmart’s multiformat “ecosystem.” In particular, defining Neighborhood Market’s trip mission as a
complement to the Supercenter and encouraging website visit frequency will be key to
rounding out shopper engagement across these platforms.
Source: Kantar Retail analysis
© Copyright 2013 Kantar Retail
Table of Contents
• Shopper Penetration
– Penetration by channel, banner
– Demographic profile
• Shopper Motivations
– Financial concerns
– Spending intentions
– Reasons to shop less
– Motives to visit
• Shopping Behaviors
– Trips, trip type, and baskets
– Where else Walmart store shoppers shop
• Brand Position
– Value demands and perceived price leadership
– Perceptions of Walmart’s offer and position versus dollar
• Growth Platforms
– Neighborhood Market
– Online & mobile reach
© Copyright 2013 Kantar Retail
4
Shopper Penetration
Walmart’s primary format is the Supercenter, and management
continues to highlight its role as their primary growth vehicle.
Although nearly 300 net Discount/Supercenters have been added
since 2007, its reach with shoppers continues to decline.
• Meanwhile, the shopper penetration at
Neighborhood Market and Walmart.com
continues to rise—underscoring the
importance of these vehicles for driving
new growth.
• Walmart’s shopper base skews toward
lower-income, rural, and suburban
families, though it has furthered its reach
with upper-income shoppers and urban
dwellers in the past five years.
Source: Kantar Retail analysis
© Copyright 2013 Kantar Retail
5
Weekly Shopper Penetration Rate Wanes
With the exception of value discounters and clubs, most channels have seen a
noticeable long-term decline in their weekly shopper penetration rates.
This movement indicates that shoppers
are consolidating their range of store
choices. In particular, more are opting out
of channels without strong value positions,
as convenience, supermarkets, and drug
stores experienced the steepest declines.
Weekly shoppers, by channel
2007-2013
PPD
Supermarkets
-4.8
Convenience stores
-9.3
Mass channel
-1.8
Drug stores
-2.3
Value discounters/dollar stores
1.7
Warehouse clubs
-0.4
Source: Kantar Retail ShopperScape®, October 2007, 2008, 2009, 2010, 2011, 2012, and 2013
© Copyright 2013 Kantar Retail
6
Walmart’s Core Formats Also Attracting Fewer
Despite continued emphasis on Supercenters, its penetration has declined ~560
basis points since 2007. Meanwhile Walmart.com and Neighborhood Market are
developing their reach.
*Analysis for Neighborhood Market is limited to states in which Neighborhood Market had a presence as of October 2013
Data labels show format’s penetration during October of each year
Source: Kantar Retail ShopperScape®, January 2007- October 2013
© Copyright 2013 Kantar Retail
7
Meanwhile, the Shopper Profile Is Shifting
Noticeably, Walmart’s base is becoming relatively more affluent and younger. Fewer
also have children, though Walmart still over-indexes versus all shoppers.
All
Shoppers
Annual HH
Income
Kids in HH
Generation
Hispanic
Household
Size
Home
Ownership
Pet
Ownership
Market Size
Sample Size
<$25K
$25K - $49.9K
$50K - $74.9K
$75K - $99.9K
$100K+
Children under 19 at home
No children under 19 at home
Generation Y (born 1982 to 2002)
Generation X (born 1965 to 1981)
Baby Boomers (born 1946 to 1964)
Seniors (born before 1946)
Yes
1 member
2 members
3+ members
Own or are buying
Rent
Live with relatives (in their home)
Other
Net - Dog/Cat Owners
Dog Owners
Cat Owners
No pets
Under 100,000
100,000 - 499,999
500,000 - 1,999,999
2,000,000 or more
Q3 2013
12116
25%
25%
18%
11%
21%
25%
75%
13%
31%
38%
18%
13%
22%
37%
42%
64%
27%
6%
1%
60%
42%
33%
40%
13%
15%
21%
51%
Monthly Walmart/WMSC Shoppers
Q3 2013
6531
27%
28%
18%
11%
17%
28%
72%
13%
31%
38%
18%
12%
19%
36%
45%
64%
27%
6%
2%
63%
46%
36%
37%
18%
19%
23%
41%
Q3 2012
6539
28%
28%
18%
10%
15%
30%
70%
13%
32%
36%
19%
11%
19%
36%
45%
64%
28%
5%
2%
62%
45%
34%
38%
18%
19%
23%
41%
Source: Kantar Retail ShopperScape®, July-September 2007, 2012, and 2013
Q3 2007
6921
30%
29%
18%
10%
13%
32%
68%
8%
31%
38%
23%
11%
24%
33%
43%
67%
25%
4%
2%
59%
43%
35%
41%
18%
19%
24%
39%
PPT Difference
Q3 '13 vs.
Q3 '13 vs.
Q3 '12
Q3 '07
-0.9
-0.1
-0.4
0.2
1.2
-2.0
2.0
0.8
-1.0
1.8
-1.5
0.9
0.5
0.0
-0.4
0.5
-0.8
0.5
0.0
1.0
1.0
1.4
-1.0
-0.4
-0.1
-0.2
0.6
-3.1
-0.6
0.0
0.5
3.2
-4.1
4.1
5.5
-0.6
0.5
-5.5
1.2
-5.0
2.9
2.2
-2.6
1.7
1.8
-0.4
3.3
3.4
0.5
-3.3
-0.3
-0.8
-1.3
2.5
Note: Bolding
highlighting indicates
significant difference
between time
periods noted (95%
confidence level)
© Copyright 2013 Kantar Retail
8
Table of Contents
• Shopper Penetration
– Penetration by channel, banner
– Demographic profile
• Shopper Motivations
– Financial concerns
– Spending intentions
– Reasons to shop less
– Motives to visit
• Shopping Behaviors
– Trips, trip type, and baskets
– Where else Walmart store shoppers shop
• Brand Position
– Value demands and perceived price leadership
– Perceptions of Walmart’s offer and position versus dollar
• Growth Platforms
– Neighborhood Market
– Online & mobile reach
© Copyright 2013 Kantar Retail
9
Shopper Motivations
Walmart has faced challenges driving momentum in 2013, reporting
negative comparable store sales in its fiscal Q1, Q2, and Q3.
However, the sentiment among its shoppers has generally improved
throughout the year.
• Walmart shoppers generally feel more
comfortable with their financial situation, with
near-term spending plans showing upward
momentum in 2013.
• However, more are shopping less often at
Walmart versus increasing their frequency.
Reasons include the fact that some shoppers
are still cutting back their spend, while others
seek nicer shopping experiences.
• Those feeling increased budget pressures are
more likely to trade down or look for deals
versus change the retailers they frequent.
Source: Kantar Retail analysis
© Copyright 2013 Kantar Retail
10
Financial Concerns Generally Abate
Walmart shoppers’ sentiment is moderating versus last year, a disposition that is
in line with all households.
Household Financial Health of Walmart Shoppers
Job security
Much better/somewhat better off
No change from last year
Somewhat worse/much worse off
Household Income level
Much better/somewhat better off
No change from last year
Somewhat worse/much worse off
Credit card debt
Much better/somewhat better off
No change from last year
Somewhat worse/much worse off
Monthly mortgage/car payments
Much better/somewhat better off
No change from last year
Somewhat worse/much worse off
Worth of investments
Much better/somewhat better off
No change from last year
Somewhat worse/much worse off
Value of home
Much better/somewhat better off
No change from last year
Somewhat worse/much worse off
Q3 2012
Q3 2013
20%
60%
19%
20%
62%
18%
28%
45%
27%
28%
47%
24%
26%
55%
20%
26%
56%
18%
23%
64%
13%
22%
66%
12%
22%
55%
23%
26%
57%
16%
20%
56%
24%
28%
58%
14%
However, a sizeable minority
still feels that its position
is deteriorating.
Those with assets are
feeling better about their
longer-term investments.
Note: Shading indicates significant year-to-year difference (90% CL)
Source: Kantar Retail ShopperScape®, July-September 2012 and July-September 2013
© Copyright 2013 Kantar Retail
11
Overall, Spending Plans Have Improved
On par with all shoppers, Walmart shoppers’ willingness to spend increased in 2013
to reach levels not seen in years. Though, 3 in 10 will still cut back.
Note: No significant differences between all shoppers and
Walmart shoppers (90% confidence level)
Source: Kantar Retail ShopperScape®, January 2009–September 2013
© Copyright 2013 Kantar Retail
12
Top Reasons Leading Those to Spend Less
Concern about the cost of groceries and fuel are the top reasons why lower
income, Have-Not shoppers are cutting back, whereas the more affluent Haves are
more concerned about the economy.
Walmart Shoppers’ Reasons for Spending Less at Retail
(among past four-week Walmart/WMSC shoppers who said they planned to spend less at
retail in the coming month vs. the same time a year ago)
Have Nots*
Haves*
Rising food prices
51%
39%
Concerns about economy in general
41%
42%
Rising gasoline prices
45%
33%
Trying to simplify my life by buying fewer things
39%
35%
Household income is lower vs. last year
37%
32%
Saving more in general
34%
33%
Concerned political leaders won’t take action to keep economy healthy
25%
25%
Concerns about job security
17%
20%
Spending more on non-retail things (healthcare, education, etc.)
18%
16%
Concerns about the job market
14%
20%
Saving for a big purchase
7%
12%
Concerns about housing value/foreclosure
6%
7%
*”Have Nots” are those with an annual household income of less than $60k; “Haves” are those with an annual household income of $60k+.
Green highlighting indicates a significant difference between Have Not vs. Have Walmart shoppers (95% confidence level)
Source: Kantar Retail ShopperScape®, September 2013
© Copyright 2013 Kantar Retail
13
Closer Look at Offsets to Budget Pressures
This year, increased payroll taxes and, more recently, reduced SNAP benefits
added stress to many shoppers’ budgets. Initial feedback suggests that lowerincome shoppers opted to curb spending over switching stores.
*”Have Nots” are those with an annual household income of less than $60k
Source: Kantar Retail ShopperScape®, February 2013
© Copyright 2013 Kantar Retail
14
While Steady, 1 in 5 are Shopping Walmart Less
Impacting traffic, more shoppers report reducing trips to the Discount stores/
Supercenters than increasing them. Many are doing so to limit spending, though
more this year are citing interest in competitors with nicer experiences.
Reasons for Shopping Less Often at
Walmart/Walmart Supercenter
May
2012
May
2013
Just shopping less in general
48%
40%
Other retailers offer more pleasant shopping
experience
22%
28%
Shopping other retailers more conveniently located
21%
25%
Can find better overall value at other retailers
20%
22%
Doing more shopping at supermarkets
24%
20%
Shopping more at retailers where can get in and
out quickly
18%
18%
Doing more shopping at Target/SuperTarget
18%
18%
Doing more shopping at dollar stores
14%
14%
Doing more shopping at online-only retailers
9%
13%
Dividing shopping between more stores; doing less
one-stop shopping
14%
12%
Doing more shopping at warehouse clubs
9%
9%
Green highlighting indicates a statistically significant year-to-year
difference (95% confidence level)
Source: Kantar Retail ShopperScape® May 2013
© Copyright 2013 Kantar Retail
15
Fewer Are Driven by the One-Stop Appeal
Viewed long term, fewer Walmart shoppers are motivated by one-stop appeals.
Instead, more are becoming driven by deals. Location, EDLP, and value remain
the top drivers.
Source: Kantar Retail ShopperScape®, Feb/May/Aug 2007 and Feb/May/Aug 2013
© Copyright 2013 Kantar Retail
16
Table of Contents
• Shopper Penetration
– Penetration by channel, banner
– Demographic profile
• Shopper Motivations
– Financial concerns
– Spending intentions
– Reasons to shop less
– Motives to visit
• Shopping Behaviors
– Trips, trip type, and baskets
– Where else Walmart store shoppers shop
• Brand Position
– Value demands and perceived price leadership
– Perceptions of Walmart’s offer and position versus dollar
• Growth Platforms
– Neighborhood Market
– Online & mobile reach
© Copyright 2013 Kantar Retail
17
Shopping Behaviors
This year, Walmart’s customer traffic has eroded slightly and
average basket has been relatively flat. To shore up its position,
the retailer has further asserted its price leadership, encouraged
cross-box integration, and promoted stock-up savings events.
• Given that grocery is the primary trip driver
and basket component, the retailer has
further opportunity to convert sales in
general merchandise categories.
• As Amazon.com continues to rise as a
contender, shoring up overlapping
categories (e.g., entertainment, apparel)
while asserting Walmart’s differentiated
offer (e.g., fresh, adult beverage) will
become of increased importance.
Source: ECRM, Kantar Retail analysis
© Copyright 2013 Kantar Retail
18
Trips to Walmart Edging Down Recently
While still ahead of 2010 levels, self-reported trip frequency to Walmart is slowly
decreasing as the channel average holds flat. Shoppers tend to visit Walmart
roughly once a week, supporting its role as serving routine needs.
Note: arrows indicate significant year-to-year difference from previous year (90% confidence level)
Source: Kantar Retail ShopperScape®, Feb/May/Aug/Nov 2010 , 2011, and 2012; Feb/May/Aug 2013
© Copyright 2013 Kantar Retail
19
Trips Are Generally to Stock Up or Fill In
While stock-ups remain the most common reason to visit, roughly as many go to
Walmart for fill-in or immediate use trips combined, indicating that the format
continues to serve an array of destination needs.
Special occasion
Browsing
Buy sale items
Buy coupon items
Immediate use
Fill-in
Stock-up
Source: Kantar Retail ShopperScape®, Feb/May/Aug/Nov 2010 , 2011, and 2012; Feb/May/Aug 2013
© Copyright 2013 Kantar Retail
20
Trips Are Driven Largely by Edible Grocery
Groceries and consumables drive a majority of trips to the Supercenter. Once in
the store, many shoppers also browse general merchandise, though the general
merchandise purchase conversation rate lags other areas of the box.
Main Reason for Last Trip to Walmart Supercenter Was To Buy …
Edible grocery items
General merchandise
HBC
HH
essentials
Highlighting the
opportunity to
support crossbox conversion
from grocery to
general
merchandise
Conversion Rate
88%
Source: Kantar Retail ShopperScape®, May 2013
70%
84%
79%
© Copyright 2013 Kantar Retail
21
While the Basket Size Is Relatively Flat
With a basket ring roughly flat year-over-year, about three-fourths of grocery trip
spending was dedicated to food and consumables.
$101
$96
$99
$88
*Note: Last trip to Walmart/Walmart Supercenter for food, groceries, HBC products, or other household essentials
Source: Kantar Retail ShopperScape®, Feb/May/Aug/Nov 2010 , 2011, and 2012; Feb/May/Aug 2013
© Copyright 2013 Kantar Retail
22
Amazon’s Cross-Shopping Reach Has Doubled
More than half of Walmart shoppers now also frequent Amazon.com, making this
competitor far and away Walmart shoppers’ top cross-shopping destination.
Top 25 Retailers Cross-Shopped by
Walmart/Walmart Supercenter Shoppers
Amazon.com
Target/SuperTarget
Walgreens
Dollar Tree
The Home Depot
Lowe's
CVS/pharmacy
Kohl's
Dollar General
JCPenney
Kroger (all banners)
Sam's Club
eBay.com
Family Dollar
Best Buy
Macy's
Bath & Body Works
Kmart/Big Kmart
Barnes & Noble
Bed Bath & Beyond
PetSmart
Staples
ALDI
Sears
Michaels
Jan-Sept
2007
24%
42%
38%
n/a
36%
32%
29%
25%
29%
32%
23%
24%
24%
21%
27%
19%
n/a
23%
20%
19%
16%
19%
n/a
20%
17%
Jan-Sept
2013
52%
40%
39%
34%
33%
32%
32%
31%
30%
28%
24%
22%
22%
22%
21%
19%
19%
18%
17%
17%
17%
17%
16%
16%
16%
PPD 2013 vs.
2007
27.6
-1.8
1.2
n/a
-3.6
0.6
3.7
5.6
1.6
-4.0
0.6
-1.8
-2.0
0.5
-5.6
0.5
n/a
-5.1
-2.9
-1.4
1.4
-2.2
n/a
-3.7
-0.7
While Amazon.com’s expanded
reach is striking, there also
were solid upticks in crossshopping at Kohl’s and CVS.
The steepest cross-shopping
declines were at Best Buy,
Kmart, JCPenney, Sears, and
The Home Depot.
Note: Green highlighting indicates significant difference between column percentages (95% confidence level)
Source: Kantar Retail ShopperScape®, January-September 2007 and 2013
© Copyright 2013 Kantar Retail
23
Table of Contents
• Shopper Penetration
– Penetration by channel, banner
– Demographic profile
• Shopper Motivations
– Financial concerns
– Spending intentions
– Reasons to shop less
– Motives to visit
• Shopping Behaviors
– Trips, trip type, and baskets
– Where else Walmart store shoppers shop
• Brand Position
– Value demands and perceived price leadership
– Perceptions of Walmart’s offer and position versus dollar
• Growth Platforms
– Neighborhood Market
– Online & mobile reach
© Copyright 2013 Kantar Retail
24
Brand Position
Walmart’s brand cornerstone is to help shoppers
save money. Today, shoppers value both spending
as little as possible and getting a good deal.
Accordingly, Walmart has augmented its everyday
low price assertions with price guarantees, lower
opening price point items, coupons, and various
savings events.
• Broadly, shoppers feel that Walmart is a strong price leader
in the market, with particular strength in consumables.
• Conversely, Walmart’s shoppers see room for improvement
in the assortment refinement and in-store experience.
• Compared with a competing low-priced channel, dollar
stores, Walmart has an opportunity to help shoppers stick to
their budgets and feel that they got a good deal.
Source: ECRM, Kantar Retail analysis
© Copyright 2013 Kantar Retail
25
Two Sides of Value of Top Concern to Shoppers
Similar to all shoppers, Walmart’s audience is most focused on spending less and
getting a good deal, with spending less a slightly higher priority.
One-stop shopping
falls noticeably lower
on the list for both
groups.
Note: Arrows indicate significant difference between all shoppers and Walmart shoppers (95% confidence level)
Source: Kantar Retail ShopperScape®, January 2013
© Copyright 2013 Kantar Retail
26
Walmart’s Price Perception Is Strong
Walmart is most commonly named the price leader across grocery and
consumables categories. However, the retailer lagged supermarkets such as H-E-B
and Publix in relation to fresh grocery.
Retailer Viewed as Price Leader, by Category
(among all primary HH shoppers)
44%
Also stiff competition from
certain supermarkets for
non-perishable grocery
36%37%
32%
Accordingly, expect
continued marketing
appeals around the low
cost of its edible
grocery offering.
31%
23%
18%
14%
10%
13%
12%
10%
11%
9%
8%
4%
5%
Walmart/Walmart
Supercenter
Supermarkets
Source: Kantar Retail ShopperScape®, November 2012
Fresh grocery
2%
1%
Warehouse clubls Target/SuperTarget
Non-Perishable Grocery
5%
4%
2%
Dollar stores
HH cleaning/paper
3%
1%
Drug stores
HBC
© Copyright 2013 Kantar Retail
27
Conversely, Assortment Has Room to Refine
While Walmart’s value is strong, the retailer’s biggest gaps for improvement pertain
to the in-store experience and assortment selection.
Ideal Grocery/HH Essential/HBC Shopping Experience
vs. Shopping Experience at Walmart
(among monthly Walmart/Walmart Supercenter shoppers)
87%
Consider clear, bold
displays to aid its
positioning
86%
83%
66%
Anticipate continued focus
on honing the grocery offer
to local tastes, demands
74%
64%
59%
54%
45%
52%
48%
47%
37%
35%
21%
21%
17%
n/a
Know I'm
Feel like I'm
paying a low
getting a
price
"good deal"
Frequent
shopper
program
offers good
rewards
6%
3%
Items I want Fun/pleasant
Store
are in-stock
to shop at
associates
Walmart
available to
give good
advice
Price/Value
Experience
Describes shopping experience at Walmart
Source: Kantar Retail ShopperScape®, May 2013
14%
17%
Can use
Walmart app
to make instore
experience
easier
20%
8%
Food offer
matches up
with what I
like to
cook/eat
Local food
products
available
High-quality Private label Local interest
private label
brands in
items are
brands
many
available
categories
Assortment
Important when grocery/HH essential/HBC shopping
© Copyright 2013 Kantar Retail
28
Walmart vs. Dollar: Strength Relies on Brands
For those looking for low price points, Walmart’s strength versus dollar stores is its
broad offering of brands, in-stocks, and private label equity. Conversely, dollar
stores are viewed as helping shoppers budget and get a good deal.
Which is Better on the Following Factors: Walmart or Dollar Stores?
(among shoppers who shopped both Walmart/Walmart Supercenter and a dollar store during the past four weeks)
Dollar Stores are Better
Wallmart is Better
Feeling like I'm getting a "good deal"
45%
Helping me stick to my budget
47%
Paying an everyday low price for items I need
44%
Making me feel like I'm a "smart" shopper
43%
Opportunity to use
signage, rounded price
points to help shoppers
budget at Walmart?
53%
56%
57%
23%
Competitively priced private brands
77%
19%
Knowing that the items I need/want to buy will be in stock
81%
10%
High-quality private brands
90%
9%
Broad selection of national/name brands
0%
Source: Kantar Retail ShopperScape®, May 2013
55%
10%
91%
20%
30%
40%
50%
60%
70%
80%
90%
100%
© Copyright 2013 Kantar Retail
29
Table of Contents
• Shopper Penetration
– Penetration by channel, banner
– Demographic profile
• Shopper Motivations
– Financial concerns
– Spending intentions
– Reasons to shop less
– Motives to visit
• Shopping Behaviors
– Trips, trip type, and baskets
– Where else Walmart store shoppers shop
• Brand Position
– Value demands and perceived price leadership
– Perceptions of Walmart’s offer and position versus dollar
• Growth Platforms
– Neighborhood Market
– Online & mobile reach
© Copyright 2013 Kantar Retail
30
Growth Platforms
Rolling out Neighborhood Markets and investing considerably in its
digital presence, Walmart is building an ecosystem of formats and
channels to reach its audience how ever they would like to shop.
• Neighborhood Market shoppers are as likely to make
stock-up trips at the store as fill-in, highlighting
opportunity to articulate the banner’s complementary
role to the Supercenter as it expands in core Walmart
markets.
• Reflective of the store locations, Neighborhood
Market’s base also is slightly more urban. As these
shoppers are introduced to Walmart, watch for
opportunity to hook them into the retailer’s wider
offering online.
• As the retailer develops its digital reach, a key
opportunity is to support website trip frequency and
convert its in-store shoppers. Also watch for
opportunity to augment the Supercenter experience
with mobile tools that offer specific utility.
Source: Kantar Retail research, store visits, analysis
© Copyright 2013 Kantar Retail
31
Neighborhood Market’s Reach Is Growing
With continued store expansion, this format now reaches across roughly half
of the states. Accordingly, its shopper penetration has more than doubled
since the start of 2011.
Source: Kantar Retail ShopperScape®, January 2011 – September 2013, Kantar Retail analysis
© Copyright 2013 Kantar Retail
32
Shoppers Are More Urban, Hispanic & Younger
Compared with Supercenters, Neighborhood Market attracts a more diverse and
cosmopolitan crowd. Its wider reach with younger cohorts also suggests greater
opportunity to interact with these shoppers via new media.
Demographic Profile of Past Four-Week Walmart
Supercenter and Neighborhood Market Shoppers*
<$25K
$25K - $49.9K
Annual HH
$50K - $74.9K
Income
$75K - $99.9K
$100K+
Kids at Home Children under 19 at home
Generation Y (born 1982 to 2002)
Generation X (born 1965 to 1981)
Generation
Baby Boomers (born 1946 to 1964)
Seniors (born before 1946)
Hispanic
Yes
Rural
Small Town
Locale
Large Town
Suburb/Commuter Town
Urban/City
Walmart
Supercenter
29%
28%
18%
10%
16%
28%
14%
31%
36%
19%
15%
18%
21%
15%
37%
10%
Neighborhood
Market
30%
27%
18%
9%
16%
29%
18%
36%
29%
16%
21%
8%
11%
16%
46%
18%
Note there is no
difference in affluence
or presence of
children, indicating
that low price value
messaging and family
appeals are just as
important to
Neighborhood Market
shoppers.
*in states where Neighborhood Market was present as of January 2011
Bolding/highlighting indicates a significant difference between Walmart Supercenter
and Neighborhood Market shoppers (95% confidence level)
Source: Kantar Retail ShopperScape®, January-September 2013
© Copyright 2013 Kantar Retail
33
Trips Are Divided Between Stock-Up and Fill-In
While less of a stock-up destination than the Supercenter, Neighborhood Market
balances to serve both grocery stock-ups and fill-in missions. In contrast, Dollar
General’s position is clearly articulated as a fill-in destination.
Given the trip types that each
format serves, is Neighborhood
Market positioned to replace
shoppers’ trips to dollar stores?
To the Supercenter?
*Analysis for all three retailers limited to states in which Neighborhood Market was present as of October 2013
Source: Kantar Retail ShopperScape®, Aug/Nov 2012, Feb/May/Aug 2013
© Copyright 2013 Kantar Retail
34
The Basket Is Smaller, More Food Focused
Relative to Supercenters, Neighborhood Market’s basket is ~12% smaller, with a
decreased emphasis of household items, consumables, and general
merchandise. Its lower ring is partly offset by its higher trip frequency.
$101
$89
Opportunity to aid
assortment refinement in
household essentials and
HBC, considering that
Neighborhood Market
dedicates ample space to
these areas
Avg Trips
per Month:
5.2
5.5
*Note: Analysis for all three banners is limited to states in which Neighborhood Market was present as of October 2013
Source: Kantar Retail ShopperScape®, Aug/Nov 2012 and Feb/May/Aug 2013
© Copyright 2013 Kantar Retail
35
Cross-Shopping Across a Host of Competitors
The range of formats that Neighborhood Market shoppers also frequent indicates
that this box serves as more of a complement than an anchor store.
Top 25 Retailers Cross-Shopped by Neighborhood Market Shoppers*
Walmart/WMSC
Walgreens
Amazon.com
Target/SuperTarget
CVS/pharmacy
Dollar Tree
Dollar General
The Home Depot
Lowe's
JCPenney
Family Dollar
Sub-Subnet - Kroger
Kohl's
Sam's Club
Best Buy
Macy's
eBay.com
Bed Bath & Beyond
Bath & Body Works
7-Eleven
Kmart/Big Kmart
Barnes & Noble
Big Lots
PetSmart
Office Depot
% NM Shoppers CrossShopped Retailer
Index vs. All
Shoppers
79%
60%
56%
52%
46%
43%
43%
43%
39%
37%
37%
36%
34%
31%
31%
30%
28%
27%
27%
25%
25%
24%
24%
24%
24%
105
144
115
144
147
151
133
138
121
148
174
113
141
141
162
179
145
182
164
232
191
159
196
144
186
Competitors that Neighborhood
Market particularly overlaps
and over-indexes with:
*in states where Neighborhood Market was present as of January 2011
Source: Kantar Retail ShopperScape®, January-September 2013, Kantar Retail analysis
© Copyright 2013 Kantar Retail
36
Assessing Walmart.com’s Reach
While Walmart.com’s audience reach outpaces store-based contenders, such as
Target.com, Amazon.com remains an accelerating leader in the channel.
Given that Walmart.com’s monthly growth rate has flattened recently,
anticipate greater attention to supporting its presence and promotions.
Walmart.com
Amazon.com
Target.com
Unique Website Visitors, Monthly
Walmart.com
Amazon.com
Unique Visits (YOY Growth Rate)
Jul-13
Aug-13
Sep-13
1%
38%
4%
3%
35%
7%
-1%
31%
4%
Target.com
160
128.9
Unique Visitors (in millions)
140
120
98.6
100
84.9
80
60
58.2
57.4
48.1
38.4
40
37.7
36.8
20
0
Source: Compete, Kantar Retail analysis
© Copyright 2013 Kantar Retail
37
Opportunity to Convert Store Shoppers
Though Walmart shoppers are just as likely to shop and buy online as others,
they are much more likely to frequent Amazon.com than Walmart.com.
Shopping Frequency on Walmart.com and Amazon.com
100%
90%
23%
24%
36%
80%
47%
70%
60%
32%
33%
Never
50%
40%
40%
30%
Monthly
34%
23%
22%
Weekly
20%
10%
8%
10%
All Shoppers
Walmart Shoppers
0%
All Shoppers
Walmart Shoppers
15%
12%
21%
21%
Less than monthly
Amazon.com
Source: Kantar Retail ShopperScape®, July 2013; Kantar Retail analysis
Walmart.com
Also explore ways to
help Walmart.com
drive repeat trip
frequency, as
relatively few are
regular visitors
© Copyright 2013 Kantar Retail
38
Walmart.com Shoppers Are Attractive
Relative to all Walmart shoppers, Walmart.com’s shopper is younger and more
likely to have kids. Contrary to popular stereotypes, they are not more affluent or
urban, signifying that online appeals should be refined accordingly.
All Walmart Shoppers vs. Walmart.com Shoppers
Consider targeting Walmart.com
appeals to these young families instore by connecting to categories or
media that they particularly seek.
All Walmart
Shoppers
Walmart.com
Shoppers
<$25K
27%
26%
$25K - $49.9K
27%
27%
Annual HH
$50K - $74.9K
Income
18%
18%
$75K - $99.9K
11%
11%
$100K+
17%
19%
Non- MSA/ MSA <500K
34%
35%
MSA 500K - 1,999K
22%
22%
MSA 2M+
43%
43%
Children under 19 at home
28%
32%
No children under 19 at home
72%
68%
Gen Y (1982 to 2002)
13%
17%
Gen X (1965 to 1981)
31%
34%
Boomers (1946 to 1964)
38%
37%
Seniors (born before 1946)
18%
12%
Yes
12%
13%
Market
Size
Kids in HH
Cohort
Hispanic
Bolding/green highlighting indicates a significant difference between all Walmart
Supercenter and Walmart.com shoppers (95% confidence level)
Source: Kantar Retail ShopperScape®, January-September 2013
© Copyright 2013 Kantar Retail
39
Its Biggest Online Competitor Is Amazon.com
Those shopping on Walmart.com are most likely to also shop Amazon.com,
with eBay and Target.com falling behind as distant second and third choices.
Top 25 Retailers Cross-Shopped Online by Walmart.com Shoppers
Amazon.com
eBay.com
Target
Best Buy
JCPenney
Kohl's
The Home Depot
Lowe's
Sears
Barnes & Noble
Macy's
Kmart
Bed Bath & Beyond
Staples
Toys "R" Us
Old Navy
Walgreens
Apple
Bath & Body Works
Sam's Club
Zappos.com
Victoria's Secret/Pink
CVS/pharmacy
QVC
Office Depot
Jan-Sept
2007
44%
43%
36%
30%
25%
15%
21%
17%
16%
18%
11%
15%
13%
15%
13%
13%
9%
5%
n/a
10%
n/a
9%
7%
9%
15%
Jan-Sept
2013
73%
39%
30%
24%
23%
22%
21%
20%
16%
16%
16%
13%
12%
12%
12%
11%
11%
11%
11%
9%
9%
8%
8%
8%
8%
PPD 2013
vs. 2007
29.1
-4.3
-5.9
-6.1
-1.8
6.6
0.1
3.2
0.3
-1.9
5.5
-1.2
-0.2
-3.0
-1.6
-1.0
2.2
5.4
n/a
-1.0
n/a
-0.6
1.4
-1.1
-6.9
• Walmart.com cross-shopping
down from 2007:
– eBay
– Target.com
– Category specialists
(e.g., Best Buy, Office Depot)
• Walmart.com cross-shopping
up from 2007:
– Amazon.com
– Department stores
(e.g., Macy’s, Kohl’s)
– Lowe’s
– Drugstores
– Apple
Bolding/green highlighting indicates a significant
year-to-year difference (95% confidence level)
Source: Kantar Retail ShopperScape®, January- September 2007 and 2013, Kantar Retail analysis
© Copyright 2013 Kantar Retail
40
Online Is Also Enhancing the Store Experience
Walmart shoppers are as likely as others to have a smartphone, enabling digital
interactions in the store. The retailer’s shoppers are particularly likely to use their
device to seek advice and search for coupons.
Given the popularity
of these various
shopping activities,
consider ways to
connect these actions
to trip planning for the
Supercenter.
Note: Boxes indicate activities in which Walmart shoppers are significantly more likely to engage vs. all shoppers (95% confidence level)
Source: Kantar Retail ShopperScape,®, March 2013
© Copyright 2013 Kantar Retail
41
Robin Sherk
Director, Retail Insights
[email protected]
501 Boylston Street
Suite 6101
Boston, MA
02116
F +1 630 245 5647
www.KantarRetailiq.com
Rachel McGuire
Senior Analyst
[email protected]
585 S. Front Street
Suite 50
Columbus, OH
43215
F +1 630 245 5647
www.KantarRetailiq.com
© Copyright 2013 Kantar Retail