Description

“Consumers are drawn to mass merchandisers for the appeal of one-stop shopping and overall value. These days, affordability is top of mind, prompting consumers to switch to mass retailers in search of quality store brands and everyday essentials at low prices. Outside of price, convenience is king, and mass merchandisers will be uniquely positioned to deliver flexible shopping experiences in an omnichannel future.”
Brittany Steiger, Senior Analyst – Retail & eCommerce

This Report looks at the following areas:

  • The impact of inflationary pressures on consumer behavior and mass merchandisers
  • Perceptions of mass merchandisers relative to other major retailers
  • Motivations and occasions driving consumers to shop in mass merchandisers
  • Attitudes and behaviors toward shopping in mass merchandisers
  • How mass merchandisers can invest in and improve the omnichannel shopping experience

Table of Contents

  1. Overview

    • What you need to know
      • This Report looks at the following areas
        • Definition
          • Market context
          • Executive Summary

              • Top takeaways
                • Market overview
                  • Figure 1: Total US sales and fan chart forecast of mass merchandisers, at current prices, 2017-27
                  • Figure 2: Outlook for mass merchandisers, 2022-27
                • Opportunities and challenges
                  • Economic pressures shift the focus to value and savings
                    • In-store shopping makes a comeback, but multichannel is the future
                      • Grocery and essentials are winning in mass
                        • Reasons for Shopping Mass Merchandisers Key consumer insights
                        • Market Size and Forecast

                          • Continued sales growth in spite of headwinds
                            • Figure 3: Total US sales and fan chart forecast of mass merchandisers, at current prices, 2017-27
                            • Figure 4: Total US sales and forecast of mass merchandisers, at current prices, 2016-26
                        • Segment Performance

                          • Supercenters and warehouse clubs dominate market share
                            • Figure 5: Total US retail sales and forecast of mass merchandisers, by segment, at current prices, 2017-27
                            • Figure 6: Total US revenues of mass merchandisers, by segment, at current prices, 2020 and 2022
                        • Market Factors

                          • Economic pressures drive consumers toward low prices
                            • Figure 7: Consumer Price Index change from previous period, 2007-22
                          • Retailers grapple with inventory pileups
                            • Conscious consumerism is on the rise
                              • Tech advancements solidify an omnichannel future
                              • Competitive Strategies and Market Opportunities

                                • Target bets on brick-and-mortar
                                  • Figure 8: Target expands its in-store strategy
                                • Walmart lays the groundwork for an omnichannel future
                                  • Figure 9: Walmart invests in omnichannel
                                • Meijer makes sustainability a priority
                                  • Figure 10: Meijer invests in sustainability and community
                              • The Mass Merchandiser Consumer – Fast Facts

                                • Retailers Shopped and Shopping Method

                                  • Walmart and Target continue to dominate
                                    • Figure 11: Retailers shopped – Mass merchandisers, by shopping method, 2022
                                  • Despite ecommerce growth, in-store is the preferred channel for mass
                                    • Figure 12: Retailers shopped online – Mass merchandisers, 2015-22
                                    • Figure 13: Walmart makes enhancements to Walmart.com
                                  • How do mass merchandisers hold up against other major retailers?
                                    • Club stores outpace Meijer and Kmart
                                      • Figure 14: Retailers Shopped, mass merchandisers versus warehouse/club, by shopping method, 2022
                                    • Amazon continues to own ecommerce
                                      • Figure 15: Retailers shopped online, 2022
                                      • Figure 16: Amazon introduces its “Amazon Style” store
                                    • Parents are a key demographic for mass merchandisers across channels
                                      • Figure 17: Mass merchandisers shopped online, by parental status and gender, 2022
                                  • Items Purchased at Mass Merchandisers

                                    • Consumers look to mass merchants for essential purchases
                                      • Figure 18: Items purchased at mass merchandisers – Any purchase, 2022
                                    • Food and beverage are winning in the mass channel
                                      • Figure 19: Items purchased at mass merchandisers – Any food/beverage – NET, by age and household income, 2022
                                    • Mass merchandisers are becoming beauty destinations
                                      • Figure 20: Items purchased at mass merchandisers, beauty – Females, by race and Hispanic origin, 2022
                                      • Figure 21: Target expands beauty partnerships
                                    • Young and middle-aged consumers are driving discretionary categories
                                      • Figure 22: Select items purchased at mass merchandisers, by gender and age, 2022
                                  • Private Label Purchase Habits

                                    • Consumers are trading into store brands
                                      • Figure 23: Items purchased at mass merchandisers – Store brands, 2022
                                    • Millennials drive store brand purchases across categories
                                      • Figure 24: Items purchased at mass merchandisers – Store brands, by generation, 2022
                                    • Quality store brands are a key differentiator
                                      • Figure 25: Reasons for shopping mass merchandisers – Store brands, by household income 2022
                                      • Figure 26: Walmart “dupes” on TikTok
                                    • Asian Americans want higher quality store brands
                                      • Figure 27: Desire for higher quality store brands, by race and Hispanic origin, 2022
                                  • Reasons for Shopping Mass Merchandisers

                                    • Affordable prices and wide assortment drive consumers toward mass merchandisers
                                      • Figure 28: Reasons for shopping mass merchandisers, by generation, 2022
                                      • Figure 29: Walmart collaborates with United Health Group to provide value-based healthcare services to seniors
                                    • Parents seek flexible and convenient one-stop shopping
                                      • Figure 30: Select reasons for shopping mass merchandisers, by gender and parental status, 2022
                                      • Figure 31: Target adds Starbucks to its “Drive Up” service
                                    • Urban shoppers crave a high-quality shopping experience
                                      • Figure 32: Select reasons for shopping mass merchandisers, by location, 2022
                                      • Figure 33: Target opens new small-format store in Times Square
                                  • Shopping Occasions

                                    • Consumers look to mass merchandisers as grocers and essential retailers
                                      • Figure 34: Shopping occasions, 2022
                                      • Figure 35: Meijer launches new small-format “Meijer Grocery” concept
                                    • Parents shop for more occasions
                                      • Figure 36: Select shopping occasions, by gender and parental status, 2022
                                      • Figure 37: “Walmart Land” on Roblox
                                    • Consumers treat themselves for fun
                                      • Figure 38: Shopping occasions – Just for fun, by key consumer groups, 2022
                                  • Perceptions of Mass Merchandisers

                                    • Mass merchandisers lead on value, but trail Amazon
                                      • Figure 39: Perceptions of mass merchandisers versus Amazon.com, 2022
                                    • Target has mastered the budget-to-quality ratio
                                      • Figure 40: Perceptions of mass merchandisers, value concepts, 2022
                                    • Still a long way to go on corporate social responsibility
                                      • Figure 41: Perceptions of mass merchandisers, corporate social responsibility, 2022
                                    • Black consumers put their trust in Walmart
                                      • Figure 42: Perceptions of Walmart, by race, 2022
                                      • Figure 43: Walmart’s “Black and Unlimited” campaign
                                  • Attitudes toward Mass Merchandisers

                                    • Consumers crave convenient, enjoyable shopping experiences
                                      • Figure 44: Attitudes toward mass merchandisers- shopping experience, by gender and age, 2022
                                      • Figure 45: Walmart + Netflix “Stranger Things” experience
                                    • Consumers are increasingly guided by their values
                                      • Figure 46: Attitudes toward mass merchandisers – Conscious consumerism, by generation, 2022
                                    • Budget-conscious behaviors extend across income brackets
                                      • Figure 47: Attitudes toward mass merchandisers – Budget/value, by age and household income, 2022
                                    • Social commerce continues to build momentum
                                      • Figure 48: Attitudes toward mass merchandisers – Social media, by key demographics, 2022
                                    • Consumers need to see the benefit of paid membership programs
                                      • Figure 49: Attitudes toward mass merchandisers – Paid memberships, by generation, 2022
                                  • Desired Improvements

                                    • Value concepts top the wishlist
                                      • Figure 50: Desired improvements, 2022
                                      • Figure 51: TURF analysis – Desired improvements, 2022
                                    • Younger consumers want more out of their shopping experience
                                      • Figure 52: Desired improvements, shopping experience, by generation, 2022
                                    • Multicultural consumers find more room for improvement
                                      • Figure 53: Select Desired improvements, by race and Hispanic origin, 2022
                                  • Appendix – Data Sources and Abbreviations

                                    • Data sources
                                      • Sales data
                                        • Forecast
                                          • Consumer survey data
                                            • Abbreviations and terms
                                              • Abbreviations
                                              • Appendix – The Market

                                                  • Figure 54: Total US revenues and forecast of mass merchandisers, at inflation-adjusted prices, 2017-27
                                                  • Figure 55: Total US revenues and forecast of supercenters and warehouse club stores, at inflation-adjusted prices, 2017-27
                                                  • Figure 56: Total US revenues and forecast of discount department stores, at inflation-adjusted prices, 2017-27
                                              • Appendix – The Consumer

                                                  • Figure 57: Mass Merchandisers shopped – Any purchase (NET), by household income, 2022
                                                  • Figure 58: Mass merchandisers shopped – Any purchase (NET), by parental status and gender, 2022

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