Consumer Attitudes & Behavior

Retailers looking for a competitive advantage in these competitive times should consider their restrooms.  

The nation’s largest supermarket retailer is stealing customers from Whole Foods Market.    That’s according to a report by Cincinnati Business Courier, which cites a new study by Barclays investment analyst Karen Short.    Whole Foods has lost up to 14 million customers during the past six quarters, according Short.    

Having reached a 15-year peak on February, consumer confidence reached a new peak in March, now standing at its highest level in 16 years.   The index's current reading is 125.6, up from 116.1 in February.   “Consumer confidence increased sharply in March to its highest level since December 2000 (Index, 128.6),” said Lynn Franco, director of economic indicators at The Conference Board.   

For the first time ever in 2016, U.S. restaurant sales eclipsed grocery store sales — and that’s good news for retail centers    The amount of space dedicated to food in retail centers has grown from 5% in 2007 to 15% today.  And the trend is expected to increase to 20% by 2025, according to a study, “The Successful Integration of Food & Beverage within Retail Real Estate,” from the International Council of Shopping Centers (ICSC).  

Three very different retailers earned the top score in a survey of customer experience.   Ace Hardware, BJ's Wholesale Club, and QVC deliver the best customer experience in the retail industry, according to the 2017 Temkin Experience Ratings, an annual customer experience ranking of companies based on a survey of 10,000 U.S. consumers.   

With Easter being almost a month later than last year, Americans are on track to spend more than ever, according to the National Retail Federation.  

Moody's Investors Service has some good news for the U.S. supermarket industry.    Grocery stores’ operating profits will grow at a fairly healthy rate again this year after a disappointing 2016, according to Moody’s new report, "Companies Will Perform Better in 2017 as Deflationary Pressure Wanes. Profitability last year was crimped by an unprecedented level of deflation for an economy not in recession, the report noted, but as downward pressure on prices wanes, things will pick up in the latter half of this year.

Consumers feel good about some — but not all — retail technologies.    That’s according to a new study by Oracle, Retail 2025, which reveals that consumers are most willing to engage brands with new technology if they feel that they are in control of their experience.  

Shoppers are no longer willing to pay full price as deep discounts influence consumer behavior.   That is one of the key findings of a new consumer report by First Insight, which found that widespread discounting by department stores and mass merchants is significantly influencing the expectations of discounts when consumers shop in other product categories.   

Despite the growth of online shopping, brick and mortar stores are still critical to retail success.   “Retail stores are not dead,” said Shelley E. Kohan, VP of retail consulting at RetailNext Inc. “The retailers who continue to embrace change in their business models will be well positioned for today and in the future."