Sorry for interrupting, this website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Learn more
Accept & Close

Mass Merchandisers - US - December 2017

Nearly all consumers shop mass merchandisers and growth is expected to continue, but loyalty is generally low among mass shoppers, even among some of those who shop the channel the most frequently. As pressure increases from competition outside the channel, mass merchandisers need to address evolving consumer expectations in order to stay relevant. Retailers should leverage their private label brands and continue to offer convenient and flexible shopping options both online and off-line to stay relevant and foster more loyalty among shoppers.

This report examines the following issues:

  • Mass shoppers driven by price, resulting in low loyalty
  • Competition is rising outside the channel

What you get

What's included

Why buy from us?

Succeed

Our reports will provide you with market data, consumer research and competitive intelligence to succeed in your market.

Instant Access

Buy now and you'll have instant access to the information you need to make the right decisions.

Opportunities

Find out what's next in the markets that matter to you: where opportunities lie and what challenges you will face.

Trusted

A business Superbrand, Mintel is a source you can trust. We have been defining and refining the Market Intelligence mix since 1972.

Table of contents

  1. Overview

    • What you need to know
      • Definition
      • Executive Summary

        • Overview
          • The issues
            • Mass shoppers driven by price, resulting in low loyalty
              • Figure 1: Attitudes toward mass merchandisers, October 2017
            • Competition is rising outside the channel
              • Figure 2: Influencers to encourage more shopping, October 2017
            • The opportunities
              • Utilize technology to encourage more shopping and combat negative perceptions
                • Figure 3: Perceptions of mass merchandisers, October 2017
              • Store brands have potential to engage more shoppers and foster loyalty
                • Figure 4: Attitudes toward mass merchandisers and influencers to encourage more shopping, October 2017
              • What it means
              • The Market – What You Need to Know

                • An optimistic outlook
                  • Supercenters and warehouse clubs are driving growth, but pressure exists from outside the channel
                    • Diverse consumers have diverse needs, but most seek value
                    • Market Size and Forecast

                      • Growth is expected to continue, driven by supercenters and warehouse clubs
                        • Figure 5: Total US sales and fan chart forecast of mass merchandisers*, at current prices, 2012-22
                        • Figure 6: Total US sales and forecast for mass merchandisers*, at current prices, 2012-22
                    • Market Breakdown

                      • Supercenters steadily growing, while discount department stores decline
                        • Figure 7: Total US retail sales and forecast of mass merchandisers*, by segment, at current prices, 2012-22
                      • Supercenters are taking share from discount stores
                        • Figure 8: Total US retail sales and forecast of mass merchandisers*, by segment, at current prices, 2015 and 2017
                    • Market Perspective

                      • Consumers are shopping mass frequently, but pressure from outside the channel continues
                      • Market Factors

                        • A diverse population creates diverse shopping needs
                          • Figure 9: Population by race and Hispanic origin, 2012-22
                          • Figure 10: Households with related children, by race and Hispanic origin of householder, 2016
                        • Income plays a role in consumers’ purchase decisions
                          • Figure 11: Median household income, by race and Hispanic origin of householder, 2015
                        • Consumer confidence and DPI on the rise
                          • Figure 12: Consumer confidence and unemployment, 2007-September 2017
                        • Most consumers seek deals and value at mass retailers
                        • Key Players – What You Need to Know

                          • Target and Walmart are making moves to win customers
                            • Combatting negative perceptions
                              • Simplifying shopping
                              • What’s In?

                                • New initiatives by Target and Walmart appear to be luring in shoppers
                                  • Figure 13: Retailers shopped – Walmart and Target, October 2017
                                • How Target plans to win
                                  • Figure 14: Target email campaign, October 2017
                                • Target winning with store brands, environment, and value
                                  • How Walmart plans to win
                                    • Figure 15: Walmart email campaign, August 2017
                                  • Walmart increasing appeal among younger shoppers
                                  • What’s Struggling?

                                    • Is cheap a bad thing?
                                      • Figure 16: Perceptions of mass merchandisers, select retailers, October 2017
                                    • Kmart and Meijer struggle to keep up with the bigger names
                                      • Target has low association with easy online shopping
                                      • What’s Next?

                                        • Keeping it simple for shoppers
                                          • Creating new reasons to shop
                                            • Figure 17: Walmart email campaign, November 2017
                                        • The Consumer – What You Need to Know

                                          • Nearly all consumers shop mass, and most do so frequently
                                            • Grocery, beauty, and clothing are key categories
                                              • Price motivates shoppers, dilutes loyalty
                                                • Mass merchandisers deliver good value, but have room for improvement in stores and customer service
                                                  • Consumers want rewards and flexible shopping options
                                                  • Retailers Shopped

                                                    • Nearly all consumers shop mass and more continue to do so online
                                                      • Figure 18: Retailers shopped, October 2017
                                                    • Young adults shop the most and they shop around
                                                      • Figure 19: Retailers shopped, by age and income, October 2017
                                                    • Parents a key mass customer, even among less-shopped retailers
                                                      • Figure 20: Retailers shopped, parental status by presence of children, October 2017
                                                    • Hispanics shopping at major players more than non-Hispanics are
                                                      • Figure 21: Retailers shopped, by race and Hispanic origin, October 2017
                                                  • Frequency of Shopping

                                                    • Frequency is split nearly even between heavy and moderate shoppers
                                                      • Figure 22: Frequency of shopping, October 2017
                                                    • Hispanics are frequent shoppers, Blacks are more moderate
                                                      • Figure 23: Frequency of shopping, by race and Hispanic origin, October 2017
                                                    • Who’s shopping more and who’s shopping less?
                                                      • Figure 24: Frequency of shopping, by gender and age, October 2017
                                                  • Items Purchased

                                                    • Grocery items, beauty, and clothing are top purchases
                                                      • Figure 25: Items purchased, October 2017
                                                    • Women, especially moms, are fulfilling grocery needs at mass
                                                      • Figure 26: Items purchased, by select demographics, October 2017
                                                    • Men are turning to mass for their fashion needs
                                                      • Figure 27: Items purchased, by select demographics, October 2017
                                                    • Hispanics shopping mass for fashion and decor
                                                      • Figure 28: Items purchased, by race and Hispanic origin, October 2017
                                                  • Attitudes toward Mass Merchandisers

                                                    • Competitive prices and product selection lure shoppers to the channel
                                                      • Figure 29: Attitudes toward mass merchandisers, October 2017
                                                    • Certain heavy shoppers are less likely to be loyal
                                                      • Figure 30: Attitudes toward mass merchandisers and frequency of shopping, by parental status, October 2017
                                                    • Shoppers across income levels are buying store brands
                                                      • Figure 31: Attitudes toward mass merchandisers, by age and income, October 2017
                                                    • Blacks are influenced by price, less likely to be loyal
                                                      • Figure 32: Attitudes toward mass merchandisers, by race and Hispanic origin, October 2017
                                                  • Perceptions of Mass Merchandisers

                                                    • Most consumers associate mass merchandisers with value and product selection, but some negative perceptions plague retailers
                                                      • Figure 33: Perceptions of mass merchandisers – Part 1, October 2017
                                                      • Figure 34: Perceptions of mass merchandisers – Part 2, October 2017
                                                      • Figure 35: Correspondence analysis – Perceptions of mass merchandisers, October 2017
                                                    • Young women view Target as more hip and upscale, with good value and products
                                                      • Figure 36: Perceptions of mass merchandisers – Target, by gender and age, October 2017
                                                    • Older, lower-income consumers feel Walmart offers good value and ample products
                                                      • Figure 37: Perceptions of mass merchandisers – Walmart, by age and income, October 2017
                                                    • Dads perceive Kmart as having good value and product selection, as well as easy store layouts
                                                      • Figure 38: Perceptions of mass merchandisers – Kmart, by parental status, October 2017
                                                    • Young men have positive perceptions of Meijer’s store environment, brands, and customer service
                                                      • Figure 39: Perceptions of mass merchandisers – Meijer, by gender and age, October 2017
                                                  • Influencers to Encourage More Shopping

                                                    • Loyalty rewards and speedy checkouts and deliveries could drive more shopping
                                                      • Figure 40: Influencers to encourage more shopping, October 2017
                                                    • Parents, especially moms, want better rewards
                                                      • Figure 41: Influencers to encourage more shopping, by parental status, October 2017
                                                    • Self-checkouts and flexible delivery options appealing to younger shoppers
                                                      • Figure 42: Influencers to encourage more shopping, by age or generation, October 2017
                                                    • Hispanics want more delivery options
                                                      • Figure 43: Influencers to encourage more shopping, by race and Hispanic origin, October 2017
                                                  • Appendix – Data Sources and Abbreviations

                                                    • Data sources
                                                      • Sales data
                                                        • Fan chart forecast
                                                          • Consumer survey data
                                                            • Correspondence analysis methodology
                                                              • Direct marketing creative
                                                                • Abbreviations and terms
                                                                  • Abbreviations
                                                                  • Appendix – The Market

                                                                      • Figure 44: Total US sales and forecast for mass merchandisers*, at inflation-adjusted prices, 2012-22
                                                                      • Figure 45: Total US retail sales and forecast of supercenters and warehouse clubs, at current prices, 2012-22
                                                                      • Figure 46: Total US retail sales and forecast of discount department stores, at current prices, 2012-22
                                                                      • Figure 47: US revenues of leading national mass merchandisers, at current prices, 2012-16
                                                                      • Figure 48: Target’s US revenues, by merchandise category, at current prices, 2009-13

                                                                  Mass Merchandisers - US - December 2017

                                                                  US $3,995.00 (Excl.Tax)