The Shopping Playbook - The new rules for Shopping are clear and firm.
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Finally, shoppers are (slowly)
coming back to shopping, but with new rules.
Their rules. See it here first.
The Shopping Playbook
The new rules for Shopping are clear and firm.
FROM WSL /STRATEGIC RETAIL
NEW REPORT ONABLE + PREDICTIVE
END ED + ACTI
CURRENT DATA + TRHOW AMERICA SHOPS® FUTURE SHOP (2011-2013)
Shoppers have conquered their personal recession.
They’ve learned a lot, and ready to shop again with new rules.
THE SHOPPING PLAYBOOK
1
Recession or Not, I’m going to Shop
People like to shop, they need to buy, but they don’t want all that debt again.
Your Move: Reward shoppers for shopping smart. Help shoppers buy responsibly with innovative payment plans,
pre-paying and rewards for shopping smart. Only then will they be able to buy more.
2 There are 15 rules for Future Shopping
Shoppers learned lessons during the recession that will stick and shape their future shopping.
Your move: Play to their rules, and everyone will win.
3 There is no pent up demand.
There is a steady return to the essentials, and to some favorite brands.
Your move: If you are selling furniture or clothing essentials, shoppers are back, other categories need to tap
into their desire to get back to the brands they miss.
4 First shoppers to come back: Men. The Young. The Affluent. Minorities.
These 4 population segments are the most willing to spend now. Each have different reasons why they can/will
spend, and some will surprise you.
Your move: The future will not be about broad strokes, but smartly targeted appeals.
5 There are 4 ways shoppers are spending more; and 4 ways they are not.
This report covers how they are spending more, or not in 47 categories so you can design the right promotion
strategy.
6
Your move: Know how shoppers think about your category in order to develop the right promotions.
Retail creativity works.
The recession forced retailers to get creative, pay attention to the store, turn up the lights, polish the floors and
paint the walls. Shoppers noticed (in some channels more than others) and they liked it.
Your move: Understand which features of a better looking store can impact shoppers.ES
CATOR CATEGORI
44 LEADING INDI
Baby Personal Care
METHODOLOGY
Baking Ingredients
Body Moisturizers
Breakfast Cereal
21 CHANNELS Bottled Water
Internet survey; conducted August ‘10. Cake/Crackers/Dessert
Catalog Candy
Nationwide sample of 1500 adults Convenience Store Cell Phone Service
Department Store Clothing
ANAL YZ ED BY Discount/Off-Price Clothing Coffee
Store Computers/Software
The report will include data tables as Dollar Store
follow, with trending comparisons as Carbonated Beverages/Soda
Drug Store Cosmetics
appropriate vs. 2008 and 2009. E-mobile Eating At Restaurants
Home Improvement Store Electronics
• Total
Internet Entertainment (concerts, tickets)
• Men and Women Mass Merchandiser/ Fashion Accessories
• Generation: Millennials, Gen X, Supercenter Fragrance
Boomers, Seniors Mall Frozen Food
- Enclosed Greeting Cards
• Income: under $50K, $50-$100K, $100K+ - Strip Hair Care Products
• Ethnicity: Caucasian, Hispanic, Specialty Store Home Décor
African-American - Beauty Home Fragrance/Candles
- Clothing Home Furnishing
- Home Furnishings Home Service
AVAILA BL E - Pet Supplies
ANALYTIC CELLS Ice Cream/Yogurt
- Other Household Cleaning Products
Supermarket Liquor
Shoppers at: - Full Line Magazines
Dollar Stores (Dollar General, Family Dollar) - Limited Assortment Men’s Grooming
Drug Stores (CVS, Rite Aid, Walgreens) TV Shopping OTC Medication
Mass Merchandisers (Target, Walmart) Warehouse Club Oral Care
Supermarkets (Albertsons, Kroger, Publix, Safeway)
Outdoor Furniture
Warehouse Clubs (Costco, Sam’s Club)
Packaged Convenience Foods
Paper Goods
Pet Supplies
HOPS
RECOVERY WORKS Premium Cable TV Service
Prescription Medication
WSL/Strategic Retail will lead workshops for your company to: Salon Services
• D
evelop strategies that will increase sales for your brands, Salt Snacks
your categories, your retailers Skin Care Products
• Create Recovery Action Steps for your business Sleepwear/ Loungewear
Take-out Foods
• Workshop Details: Toys and Games
»» Customized to your specific business Vacations
»» 3 hours; 15-20 attendees Vitamins/Nutritional
»» Developed and facilitated by WSL/SR Wine
CONTACT US 307 SEVENTH AVENUE SUITE 1707 NEW YORK NY 10001
T 212.924.7780 F 212.924.7608 E INFO@WSLSTRATEGICRETAIL.COMBUY
HOW AMERICA SHOPS® FUTURE SHOP (2011-2013)
TO KNOW...
...what shopping Moderation means in your category and channel.
...which categories are recovering. Spending behavior on over 47 categories.
...what shoppers do to make a category recover. There are many ways to spend more in a category: Use
more; go back to favorite brands; return to favorite stores, even if they cost more.
...which population segments are on their way to recovery or still stuck in the Great Recession.
The report tracks Gender, Generations (Millennials, Gen X, Boomers, Seniors); Ethnicity (Caucasian, Hispanic,
African American), Household Income.
HOW AMERICA SHOPS® FUTURE SHOP (2011-2013)
REPORT
ADD-ON: WORKSHOP NALYTIC CELLS*
A
*See inside for the full list of Analytic Cells)
Please send check payable in US dollars to: WSL /STRATEGIC RETAIL, 307 Seventh Avenue, Suite 1707, New York NY 10001
NAME: PHONE:
TITLE: FAX:
COMPANY: EMAIL:
ADDRESS:
CITY: STATE: ZIP:
For more information or to order by credit card, please contact us at info@wslstrategicretail.com or 212.924.7780
(Businesses in NY state, please add 8.375% NY sales tax)
BONUS OFFER Purchase the report and receive a 1-year subscription to “Smart Moves” - examples of what smart companies
are doing to survive and thrive.
As retail strategists and shopping futurists, we are recognized for our ability to turn shopper insights into smart actionable strategies.
Never before has this been so essential. So let us help you navigate this new shopping world.
307 SEVENTH AVENUE SUITE 1707 NEW YORK NY 10001 T 212.924.7780 F 212.924.7608 E INFO@WSLSTRATEGICRETAIL.COM© WSL MARKETING INC. 2010. NO PART OF THIS DOCUMENT MAY BE REPRODUCED WITHOUT WRITTEN PERMISSION FROM THE PUBLISHER
IN THIS REPORT
5 ... BACKGROUND & OBJECTIVES
6 ... METHODOLOGY
7 ... HOW TO READ THIS REPORT
9 ... EXECUTIVE SUMMARY
17 ... DETAILED FINDINGS
17 ... Chapter 1: Yes! Recovery.
25 ... Chapter 2: Get Back To Shopping
31 ... Chapter 3: Playbook for Future Shopping
35 ... Chapter 4: What Spending More Looks Like
43 ... Chapter 5: Return To Spending By Category
49 ... APPENDIXWhile there are no more than one-in-four shoppers coming back to
spending in any of the 44 categories we studied, why and how this
select group is doing so helps us understand what will drive the future of
shopping.
WHY they are spending more has most to do with financial confidence,
and this confidence comes from a mix of more income and less debt.
HOW they are spending more is primarily about taking advantage of sales,
but also about some pent up demand.
WHY SHOPPERS ARE SPENDING MORE
(For All Demographic Groups, See Table 7 in the Appendix)
Overall the top 3 reasons for coming back to spending are . . .
• 32% feel more confident about their finances
• 30% are tired of cutting back
• 27% paid down debt, allowing them to shop again
Once again it’s clear: more Men are confident about their future finances,
and more than twice as many Men say their household income has already
gone up. (Did they not tell their wives?)
REASONS FOR SPENDING MORE
TOTAL MEN WOMEN
Base: Spending More in At Least One Category 459 226 233
A B
% % %
I feel more confident about finances 32 36 B 29
I'm tired of cutting back so much for so long 30 30 31
I've paid down my debt and feel I can spend more
27 30 23
now
I cut back on major expenses (like a mortgage or
20 20 20
car payment)
My household income has gone up 19 26 B 12
I got a new or better job 8 9 7
36 © WSL STRATEGIC RETAIL 2010
HOW AMERICA SHOPS® FUTURE SHOP
© WSL Marketing Inc. 2010. No Part Of This Document May Be Reproduced Without Written Permission From The PublisherSome of the other demographic differences are predictable, however,
some are not.
• More Upper Income shoppers returned to spending because they are
most confident about their future (Lower Income, 25%; Middle Income,
34%; Upper Income, 49%), or their income has already improved (Lower
Income, 11%; Middle Income, 23%; Upper Income, 31%).
• More Millennials and Gen X say their income has gone up or they got a
new or better job.
• Overall, 30% were tired of cutting back so much for so long. This is
especially true for the lowest income bracket, and Caucasians.
• The #1 reason why Hispanics and African Americans have gone back
to spending is that they have paid down their debt, 35% and 39%
respectively, and now have more money available to spend.
REASONS FOR SPENDING MORE BY DEMOGRAPHICS
MILLENNIAL GEN X BOOMER SENIOR $50K - AFRICANPaths to HOW SHOPPERS ARE SPENDING MORE
Spending Again Having told us that they will not go back to their pre-recession buying
behavior, shoppers have set rules for spending again, and most of their
55% rules are about being smart shoppers.
Stock up on sales • Across all categories, spending more is about taking advantage of
sales and stocking up on those sales (55%).
33% • Across all categories, about 1/4 are no longer buying private label
Buy large economy brands, instead going back to their favorites. This drops to 15% in Food
sizes and Beverages.
• In keeping with their lessons learned during the recession, less than
25% 20% are returning to more expensive stores and brands, or buying
Trade-up from things they see and want.
private label
Spending more on Beauty
(Cosmetics, Fragrance, Skin Care, Hair Care, Oral Care, Men’s Grooming)
20%
• 56% are back to taking advantage of sales in Beauty and Personal Care.
Pay more for brands
I really like • 40% of shoppers who are spending more are using more, 30% are
saving by buying larger sizes.
• 27% are back to buying on impulse - the largest percent of any
category.
• 22% are returning to more expensive stores (a welcome sign for
Department and Specialty stores) and brands they really like.
Spending more on Health
(Rx, OTC, Vitamins, Wound Care)
• 40% are taking advantage of sales on products like OTCs or Vitamins,
30% are using more and 30% are buying larger, economy sizes.
Spending more on Food & Beverages
(Breakfast Cereal, Salt Snacks, Candy, Carbonated Beverages)
• 61% of those spending more are stocking up on sales.
• 35% are back to buying larger sizes.
• 29% are once again buying products they missed.
• 24% are switching back to more expensive brands they really like.
38 © WSL STRATEGIC RETAIL 2010
HOW AMERICA SHOPS® FUTURE SHOP
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