Consumers shopping less often in traditional grocery stores
Continuing a long-term trend, consumers made fewer trips to traditional grocery stores in 2004 as they sought greater savings, variety or convenience in other retail outlets, according to a study from ACNielsen, Schaumberg, Ill.
ACNielsen’s Channel Blurring study showed that the average American consumer made 69 trips to the grocery store in 2004, down from 72 in 2003. Every year since 1995, when ACNielsen U.S. began its annual analysis of consumer shopping patterns, the grocery channel has experienced declines in shopping frequency. That year, U.S. households made an average of 92 trips to stores in the channel. The findings are based on an analysis of data from the ACNielsen Homescan consumer panel.
“There are certainly pockets of innovation within the grocery store channel where retailers are succeeding. However, as a channel, consumers are shifting their trips to formats where they can either save more money or accomplish more of their shopping in one trip,” says Todd Hale, senior vice president, consumer insights, ACNielsen U.S.
Dollar stores have enjoyed the strongest long-term growth in household penetration - driven by the channel’s rapid expansion - while supercenters have grown the most in terms of shopping trips. The traditional mass merchandise channel continued its losses in both household penetration and shopping frequency in 2004, as more mass merchandisers either converted traditional stores to supercenters or closed poor performing stores. Shopping frequency in warehouse club stores, drug stores, and convenience stores remained flat. Both drug stores and convenience stores slipped slightly in terms of household penetration.
“One hopeful sign for the grocery channel is that several chains have rolled out or are experimenting with new store formats. Others are increasing their use of micro-merchandising and marketing to better meet the unique needs of shoppers within their trade areas. Only time will tell, but those efforts toward differentiation may help stem the loss of shoppers to other formats,” Hale says. For more information visit www.acnielsen.com.
Appearances count in direct mail
According to a study by Baltimore marketing firm Vertis, 63 percent of adults say that an interesting-looking package makes a difference as to which direct mail they open. For 51 percent, a special offer or discount will make a difference as to whether or not they open the direct mail.
Twenty-four percent of adults who read direct mail have visited a store in the past 90 days, prompted by receiving a retailer’s direct mail piece, according to research conducted by Vertis and reported in its Customer Focus 2005: Retail Direct Marketing study.
“With the huge number of products competing in the marketplace, consumers are always seeking information on the prices and selections available to ensure they are getting the best value,” says Therese Mulvey, vice president, marketing research, at Vertis. “Adults have become more receptive to using direct mail to obtain this information, and it has proven to be an effective medium for retailers to connect with new customers.”
Of the direct mail readers surveyed, 33 percent of older Baby Boomer (1946-1955) women said they visited a new store in the past 90 days based on direct mail received from a retailer. Similarly, of the adults surveyed, 28 percent of Generation X (1965-1976) men who read direct mail visited a store where they typically do not shop based on direct mail. Twenty-six percent of female Generation Y (1977-1994) direct mail readers said they visited a new store based on direct mail.
Of the total adults surveyed, 25 percent of those with a household income of $30,000-$50,000 who read direct mail said they visited a store where they typically do not shop due to direct mail.
As for the types of retail direct mail that women read, 94 percent of female younger Baby Boomer (1956-1964) retail direct mail readers said they read mail from discount stores, compared to 83 percent of older Baby Boomer women. Ninety-five percent of female younger Baby Boomer retail direct mail readers said they read information from a department store, compared to 84 percent of Generation X (1965-1976) women. Ninety percent of female Generation Y (1977-1994) retail direct mail readers said they read grocery direct mail, compared to 85 percent of older Baby Boomers. Seventy-five percent of female older Baby Boomer retail direct mail readers read information received from a home improvement store.
The study also examined the types of messages adults respond to. Eighty-two percent of Generation X women who read retail direct mail said they have replied to buy-one-get-one-free messages, compared to 63 percent of men in the same category. Of the male Generation Y adults surveyed who read retail direct mail, 79 percent said they respond to direct mail messages that include discounts off a single item, compared to 67 percent of women in the same category. Seventy-six percent of adults with a household income of $50,000-$75,000 who read retail direct mail have responded to messages with coupons. Similarly, 72 percent of adults with a household income of less than $30,000 who read retail direct mail said they have responded to messages with buy-one-get-one-free offers.
Who are the retail direct mail readers? Of clothing store direct mail readers, 71 percent are women and 29 percent are men. Of home electronics store direct mail readers, 51 percent are men and 49 percent are women. Twenty-seven percent of home electronics direct mail readers are Generation X adults. Of clothing store direct mail readers, 23 percent are younger Baby Boomer adults. For more information visit www.vertisinc.com.
Out vs. outrageous: gay TV viewers weigh in
Gay men are from Mars and lesbians are from Venus when it comes to picking their favorite TV. Men gravitate toward shows featuring guys: Queer as Folk and Will & Grace; women go for “chick” shows: The L Word and The Ellen Show.
While 32 percent of women say The L Word is their favorite show, 0.5 percent of men do. And Queer as Folk was the favorite of 26 percent of the men, but 10.2 percent of the women. Overall, 69.9 percent of women watch The L Word, compared to 22.4 percent of men, according to an online study conducted December 10-15, 2004 by GLCensus Partners, a research partnership between OpusComm Group and the S.I. Newhouse School of Public Communications at Syracuse University.
No matter what show they did pick, many of the 2,149 GLBT respondents are ambivalent about their image in the medium. Case in point: Jack McFarland. The flamboyant, over-the-top character from Will & Grace was the No. 1 pick for both “most favorite” and “negative portrayal.” The show was a top five favorite for both men and women, but with reservations. “I enjoy Will & Grace despite the fact that it is one long series of gay jokes,” said one respondent. “If Jack were a monogamous homebody like me, there would be no ratings and no show,” said another. One respondent summed it up: “Although Jack on Will & Grace portrays the worst of the stereotype of gay men, he is still the funniest of all the gay TV characters. Though I despise the stereotype, I love his comedic talents. Go figure.”
Those mixed emotions also are manifested in the fact that 47 percent of respondents couldn’t pick their least favorite show that featured either a GLBT character or GLBT participant in a leading role. “The GLBT respondents are partial to GLBT shows in general, but they also are concerned with how they are being portrayed,” says Jeff Garber, president of OpusComm Group. “Early on, they were just happy to be included. Now they want what they believe to be a fair representation.”
The survey did show that there was one thing all the respondents could agree on. When asked “Who is your favorite GLBT participant who has a recurring role on a reality TV show or talk show?” the overwhelming favorite was Ellen DeGeneres of The Ellen Show. Overall, 49.9 percent picked Ellen, 70 percent among women and 38.7 percent of men.
“There’s Ellen and then there is everyone else, mostly the Queer Eye guys,” says professor Amy Falkner of Syracuse University and a lead researcher in the study. “Perhaps it’s the history here with Ellen, her coming out on national television. GLBT people feel a connection with her and her struggles.”
Both the characters of Ben Brucker and Michael Novotny from Queer as Folk take the No. 2 and 3 spots on the most positive male portrayal, but don’t make the top five in the most favorite category. Ben and Michael portray a couple. “Perhaps relationships earn respect from the male GLBT audience,” says Garber, “but they might not be as interesting to watch as ‘wild singles.’ ”
Queer As Folk (26 percent), Will & Grace (24.1 percent) and Six Feet Under (19.9 percent) were the men’s favorite TV show featuring either a GLBT character or a GLBT participant, while The L Word (32 percent), The Ellen Show (18.7 percent) and Queer as Folk and ER (10.2 percent each) were the women’s choices.
The most-watched show among the GLBT respondents was Will & Grace; Degrassi was the least-watched show; Six Feet Under was the most accurate show; and Reno 911! was the least accurate show.
“This is not that surprising given that Will & Grace is on broadcast TV and Degrassi targets a very niche, younger audience,” says Falkner. “But the accuracy ratings are interesting, as only 11 percent said they thought Will & Grace was very accurate, which comparatively is a very low percentage. Six Feet Under’s showing is impressive - 95.2 percent said they thought it was at least somewhat accurate. ER and The L Word are the next closest in the high 80 percentiles.”
GLBT viewing habits are different than the general TV audience. The top five shows for GLBT viewers: Will & Grace, Queer as Folk, Queer Eye for the Straight Guy, Six Feet Under and CSI. The five top shows for general TV viewers (Nielsen top shows, December 13-19, 2004): Desperate Housewives, CSI-Miami, CSI, 60 Minutes and The Apprentice 2. For more information visit www.glcensus.org.
DIY sales building nicely
Despite the slowing economy after 2000, sales for home improvement products have flourished, increasing from $327 billion in 1999 to $411 billion in 2004, a growth of 26 percent. Historically-low interest rates have spurred home sales and mortgage refinancing, which in turn create additional revenue to be spent on home improvement.
Research from Chicago-based Mintel shows that income and home ownership are key drivers for growth in this industry. In addition, dedicated do-it-yourself (DIY) enthusiasts tend to spend large amounts and have repeat purchases, rather than just one single purchase. According to Mintel’s consumer research, nearly half of those who completed a home improvement project in the past year spent more than $1,000 over the year. Also, two-thirds tend to purchase at least once every three months, supporting the potential of the home improvement market.
Females are renovating the stereotype of the traditional DIY shopper, as DIY activity and purchasing are no longer just all-male markets. Women control half or more of total DIY sales, plan about one-third of home improvement projects, and have attitudes towards home improvement that are as positive as men’s attitudes. Home improvement retailers have been reaching out to women with a range of marketing strategies and such efforts appear fruitful and could be expanded. While men still show a slightly higher level of purchasing and interest in DIY activity, women show a strong interest as 65 percent of females take on home improvement tasks relative to 75 percent of men.
Stores such as Lowe’s and Home Depot are the dominant home improvement retail channel, frequented by about nine in 10 respondents who purchased home improvement products in the past year. However, about seven in 10 made purchases at hardware stores, suggesting that many consumers turn to smaller, neighborhood stores for some products.
Total U.S. retail home improvement sales are predicted to increase 35 percent in the next five years. This growth will be driven by expanded retailing of DIY products throughout many retail channels, not only home improvement stores.
Mass merchandisers are expected to increase activities intended to target DIYers by providing a wider assortment of DIY products and services. Within the big-box retail channel, retailers such as Lowe’s and Home Depot are expected to continue the pursuit of aggressive store additions, including expanded placement in urban areas throughout the U.S. For more information visit www.mintel.com.
Music subscriptions not a big hit
Portable music services will not have a big impact this year, according to Digital Music: Analysis and Forecasts, a report from Dallas-based research firm Parks Associates. Respondents in the recent Parks Associates survey Global Digital Living strongly favored the single-track purchase model over a subscription when presented with both options. Roughly 40 percent said they were likely to buy songs one at a time, but only 8 percent were likely to use a subscription service.
“The market has a long way to go in promoting subscription models,” says John Barrett, director of research at Parks Associates. “There is hope Microsoft’s Janus technology will boost the digital music market by enabling portability and greater integration of hardware and content. However, our data show the industry needs to translate these solutions into something more tangible and desirable to consumers. At present, consumers either do not fully grasp the value of a subscription ‘all-you-can-eat’ service, or they simply don’t want it.”
According to the report, the industry is beginning to promote “buffet” music plans, which allow users unlimited downloads for a flat monthly fee, to compete with a la carte models such as iTunes. Technologies such as Microsoft’s Janus promote this paradigm of use, although few MP3 players, save for some very expensive models, currently support these solutions. The report, citing both limited availability and limited enthusiasm from consumers, predicts sluggish growth for these solutions this year, but it is more bullish on the long-term prospects because hardware could be subsidized under a subscription model. For more information visit www.parksassociates.com.