It’s survival of the fittest for retailers as consumers tighten their wallets and commerce finds a new digital face.
According to Nielsen’s recent global report, “Think Smaller for Big Growth: How to Thrive in the New Retail Landscape,” 68 percent of North American shoppers said they enjoy searching for bargains. American consumers also visited more than 6,000 new stores from 2013 to 2015, with dollar stores and convenience stores topping off more than 87 percent of these shop openings. During this duration, dollar stores experienced the fastest growth rate at 9 percent compared to other retailers.
Perhaps dollar stores are expanding due to shoppers seeking more discounts. Price isn’t a make or break for all consumers though. According to the report, although 55 percent of North American shoppers said low overall prices influenced their purchase decisions among retailers, 56 percent also said that good value played a key role in choosing stores as well. Today’s consumers desire a seamless experience and relevant products, which is driving them to shop at dollar stores.
Other retailers are also taking note of this new shopper behavior. With value in mind, some stores are debuting their own store brands (also known as private-label items), to attract thrifty consumers. Another Nielsen report, “Retail Resonance: Upping the Private Label Game Among America’s Mulitcultural Households,” found that 70 percent of all American households agreed store brands were a great supplement for name-brand products. In fact, value stores have experienced a 16.3% hike in private-label dollar share growth this year, up from 15.3% in 2012.
Furthermore, shoppers today desire high-quality produce, product availability and convenience when it comes to products. Retailers should also study the multicultural U.S. population to interpret consumer trends, as Nielsen discovered that American Hispanics in particular tend to spend more at many stores, including supermarkets.
All of these factors influence how retailers will stay strong in upcoming years while e-commerce expands and demanding shoppers frequent affordable, quality stores for goods.