Consumer Attitudes & Behavior

Retailers who fail to promote back-to-college offers and savings this year do so at their own peril.   

Gen Z shoppers are gearing up to hit the stores for back-to-school purchases — and their top destination is Walmart.    Thirty-six percent of boys and girls cite Walmart as their first choice for back-to-school shopping, more than double that of any other retailer, according to a survey conducted by strategic retail advisory firm HRC Retail Advisory.    

Expensive, ineffective loyalty programs are in need of a makeover.   Retailers that shift to digital-centric programs that engage and promote brand advocacy will retain the loyalty of customers, according to the “Intelligence Report: Loyalty 2017.” The report, from L2, evaluates the successes and pitfalls of loyalty programs for 99 consumer brands across activewear, beauty, big box, department stores, and specialty retail.  

  Retailers who frustrate consumers risk brand abandonment.    Almost half of North American and European consumers surveyed by the Chief Marketing Officer (CMO) Council say they will abandon a brand if they continuously encounter a poor, impersonal or frustrating customer experience across channels of engagement. The study was undertaken in partnership with SAP Hybris.   

Wages

Besides exceeding their 2016 efforts, retailers’ back-to-school marketing investments are going digital this year.    This was according to the “2017 Retailer and Consumer Back-to-School Insights Guide,” a report from RetailMeNot. The study, which was conducted June 6-12, tapped 1,000 U.S. consumers aged 18 and over about their back-to-school spending and deal-seeking goals.  

Proposed reforms to the nation's tax code would hurt smaller retailers more than larger ones.   The National Retail Federation said smaller retailers and their employees would suffer more than large companies under a proposal to create a border adjustment tax that would drive up the price of imported merchandise.  

A wholesale club giant beats out specialty retailers to rank as the nation's favorite home furnishings retailer.    Costco Wholesale Corp. is ranks first among consumers when it comes to home furnishings, according to a study by Market Force Information. With a composite loyalty score of 72%, Costco earned the top spot. But Ikea was a close second, with a score of 70%.