Retail Trends


From: Scarborough Research

NEW YORK (August 10, 2011) –A new study from the consumer research firm Scarborough Research finds that American consumers continue to actively seek out ways to save money on everyday expenses. Coupon usage for household groceries is up 24 percent since 2006. People are turning to a myriad of resources for their coupons.

While more than one‐fifth (22 percent) are utilizing digital media such as email, text messaging or Internet sites to get their household coupons, the Sunday newspaper is the category killer. Almost half of all Americans get their household coupons from the Sunday newspaper.

Leading Sources for Household Coupons
1. Sunday Newspaper: 49%
2. In‐store Coupons: 43%
3. Mail: 33%
4. In‐store Circulars: 26%
5. Preferred Customer/Loyalty Card: 24%
6. TIE: Weekday Newspaper: 19%, Product Packages: 19%
7. Magazines: 17%
8. Internet Sites: 14%
9. Email or Text Messages: 14%
“As the American economic recovery continues to find a balance, people are utilizing a myriad of ways to save money. From traditional paper coupon clipping to seeking out deals online, consumers are getting creative with finding the best deals,” said Brian Condon, executive vice president of commercial development, Scarborough Research.

Digital Deal Seekers Provide Unique Local Business Connections

Daily deal websites are now being viewed as a media channel option for local businesses. Further, local media companies and other media businesses are getting in on the action through their own exclusive daily deal programs. Any company seeking to bolster local business has much to gain with daily deal programs, according to Scarborough. Scarborough finds that Digital Deal Seekers* are more likely than average adults to be patrons of local businesses such as florists, malls, restaurants and day spas. Here is a Scarborough profile of local businesses set to benefit from daily deal websites:
Restaurants

• Digital Deal Seekers* are 36 percent more likely than the average adult to have eaten ten or more times at a quick service restaurant during the past month, and 27 percent more likely to have eaten with this frequency at a sit‐down restaurant.
• More than half (53 percent) of Digital Deal Seekers ate at McDonald’s during the past month, and almost one‐fifth (17 percent) ate at Applebee’s.
• Their favorite cuisine is Chinese. Forty‐eight percent of Digital Deal Seekers ate at a Chinese restaurant during the past month. Forty percent ate at a Mexican restaurant, and 29 percent went out for Italian.

General Retail Stores
• Groceries: Digital Deal Seekers account for one‐third of the population that spends $200 or more on groceries weekly – the highest spending bracket measured by Scarborough.
• Department Stores: A full 91 percent of Digital Deal Seekers shopped a department store during the past month.
• Malls: They are 16 percent more likely to have shopped at a mall during the past month.
Local Specialty Stores
• Jewelry Stores: Digital Deal Seekers account for 39 percent of adults who shopped at a fine jewelry store during the past three months. They are 44 percent more likely to have done so.
• Bridal: They also account for 41 percent of all patrons of bridal stores during the past three months.
• Day Spas: Six percent of Digital Deal Seekers utilized a day spa during the past three months, but they account for almost half (43 percent) of adults who use day spa services.

• Florist: Digital Deal Seekers are 30 percent more likely to have used a florist during the past three months.

• Dry Cleaners: More than one‐fifth (21 percent) of all Digital Deal Seekers used a dry cleaner during the
past month, they are 37 percent more likely than the average adult to have done so.
• Pet Supplies: More than half (51 percent) of Digital Deal Seekers shopped a pet store during the past three months.
Health & Fitness Businesses
• Digital Deal Seekers are 47 percent more likely to practice yoga or pilates; 31 percent more likely to enjoy swimming; and 27 percent more likely to go running.
• They are 32 percent more likely to go to the gym.
Automotive Repair/Servicing
• Scarborough measures 13 types of auto repair services, and Digital Deal Seekers are more likely than the average adult to utilize each of them.
• From specialty detailing businesses to parts stores, a wide variety of types of local auto businesses have clientele utilizing Digital Deals.
“Daily deal websites are creating new media channel‐like opportunities for marketers, especially at the local level,” said Mr. Condon. “Local businesses embarking on digital marketing should consider the Digital Deal Seeker group a good place to anchor their efforts, as they are active local shoppers and consumers. As such, a key issue facing these daily deal sites is how they can differentiate their offerings according to the local needs and continue to evolve business models that create win‐win scenarios for local merchants.”

* Digital Deal Seekers refer to those adults who live in households that usually obtain cents‐off coupons via email, text messages or Internet sites, or those adults who went online for coupons during the past month.

SOURCE: Scarborough Research, Scarborough USA+ Study, Release 2 2010
About Scarborough
Scarborough (www.scarborough.com, info@scarborough.com) measures American life. Our consumer insights
reflect shopping patterns, media usage across platforms, and lifestyle trends for adults. Media professionals and
marketers use Scarborough insights to make smarter marketing/business decisions on things like ad placement,
multicultural targeting, and sponsorship opportunities. The company’s core syndicated consumer insight studies in
77 Top‐Tier Markets, its Multi‐Market Study and its national USA+ Study are Media Rating Council (MRC)
accredited. Other products and services include Scarborough Mid‐Tier Local Market Studies, Hispanic Studies and
Custom Research Solutions. Scarborough measures 2,000 consumer categories and serves a broad client base that
includes marketers, advertising agencies, print and electronic media (broadcast and cable television, radio
stations), sports teams and leagues and out‐of‐home media companies. Surveying more than 210,000 adults
annually, Scarborough is a joint venture between Arbitron Inc. (www.arbitron.com) and The Nielsen Company
(www.nielsen.com).

For Immediate Release
Kathy Grannis (202) 783-7971 or grannisk@NRF.com
www.nrf.com/holidays

National Retail Federation Upgrades Holiday Forecast, Expects Sales to Rise 3.8 Percent to $469.1 Billion
-Strong November Sales, Expected December Spending Lead to Revision-

Washington, December 15, 2011 – With just ten days until Christmas, the National Retail Federation has revised its holiday forecast upward, expecting holiday sales to rise 3.8 percent this year to a record $469.1 billion. NRF’s initial forecast, announced on October 6, called for anticipated sales growth of 2.8 percent. While a 3.8 percent sales increase is considerably above the ten-year average sales increase of 2.6 percent, it is still lower than the 5.2 percent increase the retail industry saw last year.

“After strong sales reports in October and November, along with a successful Black Friday weekend, retailers are cautiously optimistic that this season will turn out better than initially expected, bringing added stability to our recovering economy at a time when America needs it most,” NRF President and CEO Matthew Shay said. “However, a number of factors, including the debt crisis in Europe and continued political wrangling in Washington, could impact consumer spending this holiday season and into 2012.”

The forecast revision comes on the heels of two promising pieces of news. On Tuesday, NRF announced that retail industry sales for November rose 4.5 percent year-over-year. In addition, NRF’s most recent holiday survey found that the average American has completed far less of their holiday shopping than in previous years – an indication that many shoppers bought for themselves in November and have plenty of holiday shopping left to do.

“Consumer spending this holiday season has surpassed expectations, though many shoppers continue to stick to their budgets and buy only what they need,” said NRF Chief Economist Jack Kleinhenz.

As the world’s largest retail trade association and the voice of retail worldwide, NRF represents retailers of all types and sizes, including chain restaurants and industry partners, from the United States and more than 45 countries abroad. Retailers operate more than 3.6 million U.S. establishments that support one in four U.S. jobs – 42 million working Americans. Contributing $2.5 trillion to annual GDP, retail is a daily barometer for the nation’s economy. NRF’s Retail Means Jobs campaign emphasizes the economic importance of retail and encourages policymakers to support a Jobs, Innovation and Consumer Value Agenda aimed at boosting economic growth and job creation. www.nrf.com.

Consumers will spend more, shop more places, expect more, shop online more … and FedEx has hired 20,000 additional seasonal workers. Want more? Check out the Nation Retail Federations Retail Big Blog.

Retail health plays a pretty important role in the health of retail advertising in the newspaper so I try to pay attention to what is happening and predictions of the future. Like most sectors the economic downturn hasn’t been good for most retailers and rapid adoption of online purchasing has become a significant new source of sales leakage. Worse, online sales leakage hits high margin sales hardest leaving retailers with lower margin goods that must be sold in higher volumes.

Retail is changing and predicting the future in a dynamic environment brings its own risks, but Adrian Lai gives it a shot on the PSFK blog. The blog includes a link to their report on the future of retail.

Big Research finds  consumer optimism is little changed but a few category are ripe for improvement, according to recent research.

Consumers are worried about unemployment and pessimism is rising again.  Practicality in spending is the mood of the day.

Still consumers say they are preparing to increase spending in high dollar durables.

Washington, May 3, 2011 – In an effort to better serve multi-touchpoint, always-on, and empowered consumers, a growing number of retailers are experimenting with mobile and social initiatives — some that are paying immediate dividends and some that are still in the speculative phase. According to “The State Of Retailing Online 2011: Marketing, Social, and Mobile” report conducted by Forrester Research Inc. (Nasdaq: FORR) for Shop.org, 91 percent of retailers currently have a mobile (more…)

From: National Retail Federation
-Spending on Dad Totals $11 Billion, an All-Time Survey High-

Washington, May 31, 2011 – Faced with tough budgeting decisions, consumers have put Father’s Day on the back burner for years, but this year Americans seem intent on showering dad with their appreciation. According to NRF’s Consumer Intentions and Actions Father’s Day survey, conducted by BIGresearch, Americans will shell out an average of $106.49 on dad, up from $94.32 last year and the most in the survey’s eight-year history. As dad gets more recognition, the gap between Mother’s Day spending (average of $140.73) and Father’s Day spending has narrowed substantially. Total Father’s Day spending is expected to reach $11.1 billion.*

“Spending on Dad has taken a backseat for the past few years, but some kids and wives are planning to make up for lost time this Father’s Day,” said NRF President and CEO Matthew Shay. “Shoppers seem to be more excited when it comes to gift giving, an encouraging sign for retailers – and dads – everywhere.”

With an array of gift options to choose from, consumers (more…)

Click for complete survey

Washington, March 8, 2011 – With an estimated 122 million Americans planning to celebrate St. Patrick’s Day this year, there will be no shortage of parties or celebrations. According to NRF’s 2011 St. Patrick’s Day Consumer Intentions and Actions survey, conducted by BIGresearch, 52.4 percent of Americans will celebrate the Irish holiday, up from 45.2 percent last year and the most in the survey’s eight year history.

The survey found that while more people will celebrate, the average amount they plan on spending will be a lot closer to what it was last year ($33.97 vs. $33.05 in 2010). Total spending is expected to reach $4.14 billion.*

“Eager to shake off the winter blues, consumers will look to St. Patrick’s Day as their first spring related celebration, meaning great things for the economy, retailers and restaurants,” said NRF President and CEO Matthew Shay. “As a non-gift giving holiday, retailers will need to make sure they have the best assortment of merchandise, aiming to attract celebrants looking for decorations, holiday food and even apparel.”

Fans of the holiday will celebrate in more ways than one; the most popular form being wearing green apparel. Nearly 102 million people (83.3%) will wear green for the holiday. In recent years, restaurants and bars have also upped the holiday spirit as well, hosting parties and serving green beverages. Thirty-eight million Americans (31.2%) will attend a party at a bar or restaurant – also the highest in the survey’s history. Additionally, 41 million (33.9%) will make a special dinner, 31 million people (25.1%) will decorate their home or office and 23 million (19.1%) will attend a private party.

“Inexpensive, fun celebrations surrounding St. Patrick’s Day will make it easy for consumers of all ages to take part in the festivities,” said Phil Rist, Executive Vice President, Strategic Initiatives, BIGresearch. “March is typically one of the slower months of the year in terms of consumer spending, but we expect this year’s celebration to provide a nice boost for companies who are in the business of promoting the holiday.”

Demographics paint an interesting picture of St. Patrick’s Day celebrations. Eighty-six percent (86.4%) of people in the West will wear green, which is more than the survey found for the average adult. Young adults 18-24 will be the biggest group attending private parties (33.9%) and adults 25-34 years old will spend the most ($41.30).

About the Survey

The NRF 2011 St. Patrick’s Day Consumer Intentions and Actions Survey, conducted by BIGresearch, was (more…)

Social Media tops Retail Customer Experience’s Top 100 for 2011, a report they expect to produce annually. Also in the top listings: multi-channel integration, Apple Stores, online reputation management, digital products and 95 more. This is an interesting report for consumers and an even more interesting report for retailers.

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