Study: Customers display cost-consciousness

Consumers who purchase at off-price retail outlets are a growing group.



According to the latest Checkout Tracking data from global information company The NPD Group, two-thirds of all consumers shop at off-price retailers. Checkout Tracking analysis, which analyzes receipts and follows consumer purchasing behavior, also shows off-price buyers represent 75% of apparel purchases across all retail channels.



However, off-price apparel buyers are not a particularly loyal group. Analysis indicates they shop at multiple off-price retailers as well as other retail outlets.



Consumers ages 45 and above represent more than half of off-price apparel buyers. This age group, along with older millennials ages 25 to 34 who represent 16% of off-price apparel buyers, have both increased their share of off-price apparel purchases.



“Off-price retailers are resonating with fashion and cost-conscious consumers alike, and are stealing department store business for good reason,” said Marshal Cohen, chief industry analyst, The NPD Group Inc. “Off-price is second only to the online channel in terms of growth rate.”



Off-price retailers are also experiencing traffic growth as a result of this growing popularity with consumers. Shopping visits made to off-price retail stores, whether a consumer made a purchase or not, increased by 4% in the year ending April 2016 compared to same 12-month period the prior year. In the same period, off-price retailers converted 50% of shopping visits to their brick-and-mortar stores to a purchase, according to NPD’s Shopper Insights Service.



“Consumers are clearly looking for better deals and they know if they shop at an off-price retailer they will get them,” said Cohen. “Apparel shoppers are finding just what they want at off-price retailers at the right time and at the right price, and that isn’t always the case with department stores.”