ACSI: Best retailers for customer satisfaction include...
A pet supplies retailer gets high marks from consumers heading into the holiday season.
Michigan-based Pet Supplies Plus had the the highest overall retail score (86) in the American Customer Satisfaction Index’s (ACSI) Retail Holiday Preview, which details which retailers have the highest customer satisfaction rate for the first nine months of 2024. The specialty retail leader received glowing marks for staff courtesy and helpfulness as well as checkout speed.
With the holidays around the corner, customer satisfaction with the retail sector overall is 78.6 (out of 100).
Here is a breakdown of how brands fared by category.
ONLINE
Online sales are expected to surge between 7.0% and 9.5% between 7% and 9.5% this holiday season. Customer satisfaction with the industry is steady with an ACSI score of 80.
Chewy, up 1% since January when the annual 2024 retail study was released, headlines the group of online retailers with the highest customer satisfaction. Customers are satisfied with the company’s mobile app and both service and product quality, and are loyal to the brand and likely to recommend it to others, noted ASCI.
According to ACSI’s holiday preview, these online retailers have the highest customer satisfaction:
- Specialty: Chewy (85)
- Apparel and shoes: Nordstrom (79)
- Home improvement and décor: Home Depot (79)
- Multi-market: Amazon (83)
- Technology and office: Best Buy (77)
Amazon is led by its strong mobile app, website experience and merchandise variety and availability. Still, the e-commerce giant continues to improve its shopping experience by integrating new technology to speed up delivery times and make life easier for customers.
ACSI says Best Buy is striking the right balance between quality and value, which has enabled it to climb to the top of the technology and office segment. Meanwhile, Home Depot’s customer satisfaction is up 3% to 79 since the 2023 study.
The brick-and-mortar shopping experience maintains its 2024 score of 79. The top scorers in the segment include:
- Apparel: American Eagle Outfitters (79)
- Automotive: O’Reilly Auto Parts (80)
- Hardware and home improvement: Tractor Supply Company (85)
- Hobby and home: Hobby Lobby (82)
- Personal care and accessories: Ulta Beauty (83)
- Pet care: Pet Supplies Plus (86)
- Sporting goods and sports apparel: Dick’s Sporting Goods, Foot Locker (80)
- Technology and office: Best Buy (81)
With the highest overall retail score, Pet Supplies Plus receives high marks for staff courtesy and helpfulness as well as checkout speed. Tractor Supply Company has established itself among the top specialty retailers because of its burgeoning in-store experience, convenient hours and locations, cleanliness, technology and more. While American Eagle Outfitters and O’Reilly Auto Parts continue to lead their respective segments, both have slipped since the January retail study.
General merchandise retailers are the only ones to see improving customer satisfaction, up 1% to an ACSI score of 78. Top performers include:
- Department stores: Macy’s (82)
- Discount stores: TJX (Marshalls, TJ Maxx) (82)
- Hypermarkets: Target (80)
- Warehouse clubs: Sam’s Club (Walmart) (85)
Sam’s Club has usurped Costco from a customer satisfaction standpoint, which ACSI says is due to its new checkout process and in-store pickup. Sam’s Club has been piloting new technology to improve the customer experience including a Scan & Go service so customers can skip lines altogether and curbside pickup regardless of membership tier.
With inflation putting pressure on consumers, budget-friendly TJX has cut into the market share of competitors like Macy’s and Target. It’s also become a hot spot for Gen Z, “who tend to be more concerned with snagging good, high-quality deals than shopping at high-end names.” However, Target’s low prices and wide selection continues to make it a fan favorite retailer.
ACSI noted that holiday spending is projected to reach anywhere from $979.5 billion to $989 billion in November and December, up 2.5% to 3.5% year-over-year. The growth is expected to be led by e-commerce, with online sales projected to grow between 7% and 9.5%.
"In a climate of economic uncertainty, consumers are laser-focused on finding the best deals, whether they're shopping online or in-store,” said Forrest Morgeson, associate professor of marketing at Michigan State University and director of research emeritus at the ACSI. “The retailers that can deliver on both convenience and savings will be the ones that capture the most consumer dollars in the weeks ahead.”
ACSI’s holiday preview is based on 25,085 completed surveys from January 2024 to September 2024.
