SHOPPER INSIGHTS - Kantar Retail iQ

SHOPPER INSIGHTS February 2012 

American ShopperScape ®

2011 American ShopperScape ® 

/ Table of Contents 

Shoppers Today ...................................................................................................2 

Shopping Modes..................................................................................................6 

Measuring Loyalty & Leakage ............................................................................9 

Walmart Watch: Declining Shopping Frequency .............................................12 

Amazon.com Continues Move Toward Being a ................................................19 

Mainstream Shopping Destination 

Online Shopping: The New General Store .......................................................24 

/ Authors 

Mary Brett Whitfield 

Senior Vice President 

marybrett.whitfield@kantarretail.com 

Rachel McGuire 

Senior Analyst 

rachel.mcguire@kantarretail.com 

Kate Senzamici 

Analyst 

kate.senzamici@kantarretail.com 

© 2012 Kantar Retail. All rights reserved. 

/ Kantar Retail 

Two Easton Oval 

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Telephone: (614)-355-4000 

www.kantarretail.com 

www.kantarretailiq.com 

No part of this work may be reproduced or transmitted in any form or by any means, electronic or mechanical, 

including photocopying, recording, or by any information storage and/or retrieval system, without permission in 

writing from the publisher.

Shoppers Today 

Even with the economy still stuck in low gear, shoppers 

have started 2012 with a fairly positive outlook for the year 

(Figure 1): 

A quarter of shoppers (26%) expect to be better off in 

2012 vs. last year in terms of their personal household 

financial situation; this number rockets to nearly four 

in 10 Gen Y shoppers and one-third of shoppers in the 

Gen X cohort. 

Figure 1: Shoppers’ Outlook for Personal Financial 

Situation in 2012, by Generation 

26% 

46% 

“Note: Boxes indicates significant difference from all shoppers (90% 

confidence level 

Source: Kantar Retail ShopperScape ® , October 2011 

© 2012 Kantar Retail 

39% 

36% 

33% 

44% 

22% 

47% 

21% 12% 15% 25% 28% 

7% 13% 9% 6% 5% 

All Shoppers Gen Y Gen X Baby 

Boomers 

Not sure Worse than it is today 

About the same as it is today Better than it is today 

16% 

52% 

Seniors 

- 2 - 

Consistent with other attitudes and below-average 

spending intentions throughout the recession and 

recovery, Seniors and Boomers continue to be 

skeptical about improving prospects. 

Shoppers’ assessment of the outlook for the economy 

as a whole are not nearly as positive: only 19% 

expect the economy to be better in 2012 than it was in 

2011, and that assessment is fairly consistent across 

generational cohorts (Figure 2). 

Figure 2: Shoppers’ Outlook for Overall U.S. Economy 

in 2012, by Generation 

19% 23% 19% 16% 20% 

35% 

37% 

9% 

34% 40% 

26% 

29% 

17% 11% 

Source: Kantar Retail ShopperScape ® , October 2011 

32% 

43% 

All Shoppers Gen Y Gen X Baby 

Boomers 

33% 

42% 

8% 5% 

Not sure Worse than it is today 

About the same as it is today Better than it is today 

Seniors

Even though shoppers have low expectations for an 

improving economy in 2012, a positive outlook is apparent 

in spending intentions. After deteriorating early in 2011 

and stalling out mid-year, shoppers’ spending sentiment 

has been improving now for four consecutive months 

(Figure 3). 

Despite the current positive indicators, few factors 

related to shopper’s financial outlook seem likely to boost 

spending in a dramatic way (Figure 4). Across six measure 

of household financial health, shoppers are more likely 

to assess their household financial situation as worse 

off vs. better off compared with last year, but on most 

measures, they don’t perceive a change in their situation in 

either direction. Particular pockets of concern, however: 

shoppers’ assessments of worth of investments and home 

values. 


- 3 - 

Figure 3: Spending Intentions in Coming Month Compared 

with Same Period Last Year 

60% 

50% 

40% 

30% 

20% 

10% 

0% 

May-08 

Jul-08 

Sep-08 

Nov-08 

Jan-09 

(three-month moving average) 

Spend Much/ 

Somewhat More 

Mar-09 

May-09 

Jul-09 

Sep-09 

Source: Kantar Retail ShopperScape ® , May 2008-January 2012 

Figure 4: Household Financial Health Compared with Same Period a Year Ago 

Job security 

Source: Kantar Retail ShopperScape ® October–December 2010 and 2011 

Nov-09 

Jan-10 

Mar-10 

May-10 

Q4 2010 Q4 2011 

Net - Much better/somewhat better off 17% 17% 

No change from last year 63% 62% 

Net - Somewhat worse/much worse off 20% 21% 

Household Income level 




Credit card debt 




Monthly mortgage/car payments 




Worth of investments 




Value of home 




Jul-10 

Sep-10 

Nov-10 

Jan-11 


Mar-11 

May-11 

Spend About 

the Same 

Spend Much/ 

Somewhat Less 

Jul-11 

Sep-11 

Nov-11 

Jan-12

Shoppers’ assessments of their own situations can 

run counter to the situation of the aggregate (as in the 

case of more shoppers feeling worse off regarding job 

security despite an improving jobs picture). Therefore, 

it is important to monitor shoppers’ actions, paying 

attention to what shoppers do as measured by retail 

sales results, shopping patterns, and spending intentions 

vs. what shoppers say in measures of confidence and 

sentiment. However, expect cautiousness toward 

spending to resurface amid uncertainty in the run-up to 

the November elections—as was the case in the approach 

to the 2010 mid-term elections, when shoppers’ spending 

intentions leveled off for several months. As the election 

approaches and negative campaign ads ramp up, the same 

pattern could very well appear, regardless of the health of 

economic or household fundamentals. 

In terms of planned approaches to shopping this year, 

shoppers continue to signal that deal-seeking and limiting 

behaviors will characterize the shopping mindset 

(Figure 5): 


Figure 5: Participation in Shopping Behavior Changes 

Behavior Changes In Recession 

Source: Kantar Retail ShopperScape ® , February 2010 and October 2011 

- 4 - 


Among the Top 10 behaviors shoppers anticipate 

adopting in 2012—all of which have participation 

rates between one-quarter and just over a half of 

shoppers—three are “deal-seeking” behaviors (e.g., 

taking advantage of good sales and deals) and six 

are related to “limiting” (e.g., buying only things truly 

needed). 

Only one of the Top 10 shopping approaches is related 

to “trading down”: shopping more at value/discount 

retailers. 

Relative to deal-seeking, limiting or even trading 

down behaviors, few shoppers indicate plans to move 

some shopping online—by shopping online for more 

things, shopping online more often, or switching 

some purchasing to auto-replenishment programs. 

However, with as many as one in 10 shoppers planning 

to adopt these behaviors, it is certain that the 

Internet’s role in shopping will accelerate over time. 

Plan for 

2012 Type of Behavior 

Taking advantage of good sales/deals 41% 54% Deal-Seeking 

Buying only things I truly need 40% 52% Limiting 

Using more coupons 34% 48% Deal-Seeking 

Buying fewer things 33% 42% Limiting 

Doing more price comparisons before purchasing 33% 38% Deal-Seeking 

Shopping less often 31% 34% Limiting 

Using/keeping items longer before replacing 20% 30% Limiting 

Buying only items needed in the near term 23% 28% Limiting 

Shopping more at discount/value retailers 22% 28% Trading-Down 

Postponing more purchases 28% 25% Limiting 

Buying less expensive versions of products 27% 24% Trading-Down 

Buying fewer luxury items 35% 24% Limiting 

Buying more store brands vs. national brands 26% 22% Trading-Down 

Trading down to less-expensive brands na 16% Trading-Down 

Shopping online for more things na 13% Moving Online 

Shopping online more often na 12% Moving Online 

Using smart phone to compare prices while in stores na 6% Deal-Seeking 

Switching some purchasing to "auto-replenishment" 

programs 

na 1% Moving Online

Regardless of how shoppers plan to attack shopping in 

2012, it is quite likely they will be doing their shopping at 

a broader set of retailers than have been on the shopping 

list during the past few years (Figure 6). The average 

number of retailers shopped in December 2011 hit 13.4, 

the most retailers shopped in any December since 2008 

but still below the pre-recession December high of 14.7 

retailers in 2007. 

After two years of declining or steady figures, the number 

of retailers shopped on a monthly basis trended upward 

in 2011. Specifically in the fourth quarter, the pattern 

in previous years has been that the number of retailers 

shopped per month dropped off early from the mini-peak 

of retailers shopped during the core back-to-school 

16.0 

14.0 

12.0 

10.0 

8.0 

6.0 

4.0 

2.0 

0.0 

Jan-07 


Mar-07 

May-07 

- 5 - 

shopping months before spiking again in December. In 

2011, however, the number of retailers shopped in the 

fourth quarter ramped up month-to-month. The relatively 

high number of retailers shopped in November 2011 (11.8 

vs. 10.8 in 2010) likely reflects holiday shoppers seeking 

out Black Friday deals from a wider variety of retailers— 

many of which started “Black Friday” on Thanksgiving or 

earlier in the month—to start the holiday season. 

The number of retailers shopped within each group of 

retailers—FDM, Softgoods, Homegoods, and others— 

exhibited the same pattern of month-to-month growth 

over the course of the quarter. Shoppers had more 

Softgoods retailers on their shopping list in December 

2011—5.0—than any month since December 2007. 

Figure 6: Average Number of Retailers Shopped during Past Four Weeks 

Jul-07 

14.7 

Total Avg. # of 

Retailers Shopped 

Sep-07 

Avg. # of Homegoods 


Nov-07 

Jan-08 

(inclusive of all visits to stores, Web sites, or catalogs) 

13.5 

Source: Kantar Retail ShopperScape ® , January 2007-December 2011 

Mar-08 

May-08 

Jul-08 

Sep-08 

Nov-08 

Jan-09 

Avg. # of FDM 


Mar-09 

May-09 

Jul-09 

Sep-09 

Nov-09 

13.1 13.1 

Jan-10 

Mar-10 

Avg. # of Softgoods 


May-10 

Jul-10 

Avg. # of Other 


Sep-10 

Nov-10 

Jan-11 

Mar-11 

May-11 

Jul-11 

Sep-11 


Nov-11 

13.4

Shopping Modes: Low-Cost Replenishment Leads 

The Six Shopping Modes typology reflects the primary ways shoppers approach shopping (Figures 1 and 2). 

1. Low-cost Replenishment proves to be the most common shopping mode yet again—consistent with data from March 

2008 and June 2009. However, the mode registers even higher percentages of shoppers indicating this is a typical 

approach to shopping (71%, compared with 62% in March 2008 and 65% two years ago). As usual, food/drug/mass 

retailers hold the top spots here—with Walmart and Target as the top two retailers shoppers associated with this 

shopping mode, but Kohl’s and JCPenney also make the Top 10 list. Warehouse clubs also are in the ranking for this 

mode, with Costco and Sam’s Club occupying the sixth and 10 th spots. 


62% 

65% 

71% 

Low-cost 

Replenishment 

Figure 1: Participation Rate in Shopping by Shopping Mode 

54% 55% 55% 

50% 50% 49% 

Thrill of 

the Hunt 

Shopping Mode Descriptions: 

Speed & 

Convenience 

Source: Kantar Retail ShopperScape ® , March 2008, June 2009, June 2011 

- 6 - 

31% 

31% 

Sense of 

Discovery 

29% 

Mar-08 Jun-09 Jun-11 

18% 20% 18% 

12% 14% 14% 

Solve a 

Problem 

Low-Cost Replenishment: Shopping for products that need to be replaced on a routine basis 

Thrill of the Hunt: Hunting for unique bargains 

Speed & Convenience: Buying goods in the fastest and most convenient way 

Sense of Discovery: Shopping at a retailer to discover new things 

Solve a Problem: Looking to a retailer for advice on how to do things or get help solving problems 

Self Expression: Shopping at a retailer because it reflects how I express myself and my lifestyle 

Self- 

Expression

2. Thrill of the Hunt remains the second-most common shopping mode—but is down slightly compared with 

June 2009. Walmart again gets the top nod here, but at a much lower rate than its association with low-cost 

replenishment shopping. Thrill of the Hunt shopping is strongly associated with off-price apparel specialty retailers, 

as well as small-format value retailers and “alternative” retail options such as thrift stores and eBay. The attraction 

of half of U.S. primary household shoppers to this shopping mode is likely linked to the deal-seeking behavior 

shoppers adopted during the economic recession. This has led to the dollar channel’s increased popularity, as well 

as shoppers’ tendency to shop around for the best deal. 

3. The incidence of shoppers engaging in shopping in Speed and Convenience mode holds steady in the third spot. This 

mode has lost some popularity, however, compared with previous periods. Here, as with low-cost replenishment 

mode shopping, food/drug/mass retailers continue to play an important role, with Walmart and Target occupying the 

top two spots of retailers mentioned on an unaided basis as being associated with this mode of shopping. However, 

online has a far greater impact on this mode compared with low-cost replenishment, with Amazon.com as the thirdmost 

mentioned retailer associated with this mode. With the wide variety of products available online, as well as the 

ability to shop any time of day or night, it is no surprise that Amazon is so strongly related to a quick and convenient 

shopping experience. 

1 Walmart/ 

WMSC 

Low Cost 

Replenishment 

n = 794 

2 Target/ 

SuperTarget 


- 7 - 


Figure 2: Top 10 Retailers Shoppers Most Associated with Shopping Modes 

39% Walmart/ 

WMSC 

Thrill of the Hunt 

n = 809 

17% Walmart/ 

WMSC 

Speed & 

Convenience 

n = 790 

9% Kohl's 8% Target/ 

SuperTarget 

Note: Unaided mentions by shoppers indicating shopping in shopping mode 

Source: Kantar Retail ShopperScape ® , June 2011 

41% Walmart/ 

WMSC 

Sense of Discovery 

n= 690 

9% Target/ 

SuperTarget 

15% The Home 

Depot 

3 Kroger 3% Thrift Stores 6% Amazon 4% Kohl's 6% Walmart/ 

WMSC 

4 Meijer 2% Target/ 

SuperTarget 

Solve a Problem 

n = 477 

Self-Expression 

n = 465 

26% Kohl's 11% 

10% Lowe's 24% Target/ 

SuperTarget 

7% Walmart/ 

WMSC 

6% Kroger 3% Amazon 6% Ace Hardware 5% Macy's 5% 

5 Kohl's 2% TJ Maxx 5% Publix 2% Macy's 4% Best Buy 4% Nordstrom/ 

Nordstrom 

Rack 

6 Costco 2% Marshalls 5% Meijer 2% TJ Maxx 3% Menard's 3% JCPenney 3% 

7 WinCo Foods 2% Big Lots 3% Kohls 2% Lowe's 3% Macy's 2% Whole 

Foods 

8 Shop Rite 2% Ross Dress 

for Less 

9 JCPenney 2% eBay.com 2% Dollar 

General 

3% Costco 2% JCPenney 2% Target/ 

SuperTarget 

10% 

9% 

3% 

3% 

1% Amazon 2% 

1% Marshalls 2% Walgreens 1% Express 2% 

10 Sam's Club 1% JCPenney 2% JCPenney 1% Best Buy 2% Bed Bath & 

Beyond 

1% Old Navy 1% 

HEB 1% Amazon 1% Kmart 1% 

Ann Taylor/ 

Ann Taylor 

Loft 

1%

4. As the fourth-most popular shopping mode, Sense of Discovery is an approach to shopping engaged in by fewer 

than one-third of shoppers. This mode shows yet another instance where Walmart and Target appeal to shoppers. 

However, apparel retailers dominate the Top 10 list, with Kohl’s as the top apparel retailer that shoppers associate 

with sense of discovery shopping, and Macy’s landing on the list in fifth place. Amazon.com, with its huge range 

and variety of products, comes in at #4. Home-improvement/consumer electronics retailers also are strongly 

associated with this mode—namely Lowe’s, but Best Buy makes the Top 10 list too. 

5. Among all shoppers, Solve a Problem ties as the fifth-most common shopping mode (14%)—with participation 

rates in this shopping mode up and down over time. Not surprisingly, home improvement/CE retailers are most 

associated with looking for advice or getting help solving a problem—although Walmart is sandwiched into the #3 

spot among The Home Depot, Lowe’s, Ace Hardware, and Best Buy. 

6. Last on the list is Self-expression mode shopping, with participation rates declining over time. Many apparel 

retailers are associated with this mode (Kohl’s tops the list), but Target and Walmart still get a nod here. Some 

higher-end retailers make the list of those most associated with self-expression shopping—Nordstrom, Whole 

Foods—which is not surprising as higher-income shoppers are more likely to have that luxury of selecting retailers 

based on the desire to self-express. 

The participation rate in shopping modes can vary by generational cohort (Figure 3). However, Thrill of the Hunt and 

Speed & Convenience shopping have fairly consistent participation rates across generations. 


» Older shoppers—especially Seniors, but also Boomers to a slightly lesser extent—are most likely to shop in 

Low-cost Replenishment and Solve a Problem mode. 

» Only just over half (56%) of Gen Y shoppers report the Low-cost replenishment mode shopping is common 

for them, which is a significantly lower participation rate then for all shoppers. 

» In contrast, Gen Y shoppers are the most likely Self Expression and Sense of Discovery Shoppers. 

90% 

80% 

70% 

60% 

50% 

40% 

30% 

20% 

10% 

0% 

Low-cost 

Replenishment 

Figure 3: Partcipation Rate in Shopping Mode by Generation, 2011 

Thrill of the Hunt Speed & 

Convenience 

Source: Kantar Retail ShopperScape ® , June 2011 

Gen Y Gen X Boomers Seniors 

- 8 - 


Sense of Discovery Solve a Problem Self-Expression 

Represents All Shoppers Incidence Rate

Measuring Loyalty and Leakage 

One of the ways to measure loyalty to a retailer is to 

understand the degree to which its regular shoppers 

use it as their primary or preferred store in any given 

category. Obviously, the goal for every retailer is to 

capture a significant share of its regular shoppers’ 

spending in the categories the retailer is most known 

for. But the reality is that very few retailers can claim a 

“capture rate” in core categories that even approaches 

50%. 

Groceries 

For food and groceries, approximately 50% of leading 

supermarkets’ monthly shoppers indicate spending 

51% 51% 


- 9 - 

the most there (Figure 1). Safeway’s 41% capture rate 

is ominously low when compared with other leading 

conventional supermarket operators. It leaks shoppers 

at a greater rate than other supermarkets to warehouse 

clubs: 10% of regular Safeway shoppers report spending 

the most on food and groceries at Costco. 

Specialty food retailers or those that cater to a specific 

shopper niche—e.g., Whole Foods, Trader Joe’s, or ALDI— 

have capture rates of no more than 20%, meaning that 

just one in five shoppers uses the retailer as her primary 

grocery store. 

Figure 1: Capture Rate: Food/Groceries 

Percent of Retailer’s Monthly Shopper Base that Spends the Most at that Retailer 

41% 

51% 

18% 

Kroger Publix Safeway Wegman's Whole 

Foods 

Source: Kantar Retail ShopperScape®, January–December 2011 

14% 

Trader 

Joe's 

20% 

38% 

24% 

15% 

ALDI Walmart Costco Sam's Target Dollar 

Stores 

6% 

2%

The mass retailers—both the supercenter/warehouse club 

big-box variety and the small-box dollar store variety— 

capture no more than approximately one-third of shoppers 

in terms of primary grocery spending. Costco has a 

higher capture rate than Sam’s but both pale vs. Walmart. 

With single-digit capture rates for groceries, Target and 

dollar stores clearly serve as secondary channels for 

purchasing in these categories. But Walmart plays a 

significant role in grocery shopping routines (Figure 2). 

Among the regular shoppers of all these leading retailers, 

Walmart is either the top or second-place destination 

for groceries—with the exception of Trader Joe’s: its 

shoppers’ top two destinations are indeed Trader Joe’s 

and Costco. Among Aldi, Sam’s Club, and Target monthly 

shoppers, more choose Walmart as the retailer where 

they spend the most on groceries. 

Health & Beauty Care 

Overall, Walmart has the highest share of preference for 

health and beauty care spending, and the retailer is the 

store of preference for more than half of its shoppers 

(Figure 3). Walmart’s capture rate of 52% is significantly 

higher than the capture rate of the Big 3 drug store 

retailers—all of which leak a substantial share of shoppers 

to Walmart, but Walgreens most of all (Figure 4). Walmart’s 

capture rate also exceeds Target’s, but Target is more likely 

to leak shoppers to the drug store channel than Walmart. 

Typically, supermarkets have a capture rate in this 

category that registers in the single digits. Kroger is an 

exception: 13% of its monthly shoppers spend the most on 

health and beauty care there. 

36% 


31% 

Figure 3: Capture Rate: Health & Beauty Care 


25% 

52% 

31% 

Source: Kantar Retail ShopperScape ® CVS Rite Aid Walgreeens Walmart Target Dollar 

Stores 

, January–December 2011 

- 10 - 

Percent of Retailer's 

Monthly Shopper Base 

that Spends the 

Most at Walmart 

Kroger 20% 

Publix 20% 

Safeway 10% 

Wegman's 7% 

Percent of Retailer's 

Monthly Shopper Base 

that Spends the 

Most at Walmart 

Measuring Loyalty and Leakage 

Figure 2: Role of Walmart: Food/Groceries 

Share Spending 

Most at Walmart > 

Share Spending Most 

at Retailer 

Whole Foods 11% 

Trader Joe's 6% 

Aldi 23% √ 

Costco 10% 

Sam's 28% √ 

Target 14% √ 

Dollar Store 33% √ 


Figure 4: Role of Walmart: Health and Beauty Care 

Share Spending 

Most at Walmart > 

Share Spending Most 

at Retailer 

CVS 19% 

Rite Aid 18% 

Walgreens 28% √ 

Target 20% 

Dollar Stores 41% √ 

Kroger 32% √ 

Safeway 23% √ 

Publix 30% √ 

Costco 21% √ 

Sams 39% √ 

Dollar Store 33% √ 


14% 13% 

7% 7% 

9% 

4% 

Kroger Safeway Publix Costco Sam's

Casual Apparel 

Among leading apparel retailers, Kohl’s has the highest 

capture rate: 54% of its monthly shoppers spend the most 

on casual apparel there (Figure 5). Sears has the lowest 

capture rate of the value department stores; more of its 

shoppers spend most on casual apparel at Walmart than 

do at Sears. 

Walmart’s capture rate of 26% is double that of Target’s. 

Despite Target’s appeal to “Target-ista Fashionistas,” 

many of its monthly shoppers spend the most on casual 

apparel at specialty apparel stores or Kohl’s. When 

Walmart shoppers don’t spend the most on casual clothes 


54% 

- 11 - 

at Walmart, they also are most likely to be spending at 

apparel specialists. 

Consumer Electronics 

As with other merchandise groups, there is a retailer 

with a standout capture rate for consumer electronics 

spending. Best Buy captures more than one-half of its 

regular shoppers’ spending on consumer electronics and 

computers. A very respectable 22% of regular Amazon. 

com shoppers spend the most on consumer electronics at 

the online giant, but nearly as many (20%) spend the most 

at Best Buy (Figure 6). 

Figure 5: Capture Rate: Casual Clothing for Everyday/Weekends 


41% 

15% 

Source: Kantar Retail ShopperScape ® Kohl's JCPenney Sears Macy's Nordstrom Apparel 

Speciality 

Stores 

, January–December 2011 

53% 

36% 

21% 

38% 

26% 

13% 

Walmart Target 

Figure 6: Capture Rate: Consumer Electronics/Computers 


29% 

11% 

28% 

Source: Kantar Retail ShopperScape ® , January–December 2011 

11% 

Best Buy Apple Game Stop Walmart Target Costco Sam's Staples Amazon 

13% 

9% 

21% 

22%

Walmart Watch: Declining Shopping Frequency 

In a period in which Walmart is in the midst of a change 

in strategy, about one-fifth of Walmart shoppers say they 

are shopping there less often than they were a year ago— 

while only 15% say they are shopping the retailer more 

often (Figure 1). Although Walmart is leaking shoppers at 

a consistent rate across all demographic segments, it is 


All Shoppers 

Gen Y 

Gen X 

Baby Boomers 

Seniors 

No children at home 

Children at home 

Down Market 

Middle Market 

Up Market 

Source: Kantar Retail ShopperScape ® , May 2011 

Figure 1: Changes in Walmart Shopping Frequency 

13% 

9% 

15% 

13% 

14% 

12% 

17% 

20% 

19% 

25% 

(among Walmart shoppers) 

- 12 - 

having slightly better luck attracting young, down-market 

families more frequently. Gen Y shoppers, shoppers with 

children at home, and down-market shoppers represent 

the Walmart shopper segments with the highest 

percentages who say they are shopping there more 

often—25%, 20%, and 19%, respectively. 

66% 

71% 

64% 

61% 

65% 

58% 

65% 

68% 

59% 

54% 

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 

Shopping more often Shopping about the same Shopping less often 

21% 

21% 

22% 

22% 

21% 

22% 

20% 

23% 

22% 

19%

In tune with the broader retail landscape, Walmart is 

experiencing the effect of shoppers scaling back on trips 

overall (Figure 2). 

While the grocery channel still holds the highest 

percentage of shoppers making weekly trips, this 

figure has dropped 2.3 percentage points in the past 

year. 

Walmart is second to grocery in loss of weekly trip 


Supermarkets 

Walmart/Walmart 

Supercenter 

Drug stores 

Value discounters/dollar 

stores 

Target/SuperTarget 

Warehouse clubs 

Kmart/Big Kmart/Kmart 

Super Center 

Figure 2: Weekly Shoppers of Format/Retailer 

5% 

4% 

5% 

4% 

3% 

9% 

8% 

9% 

7% 

7% 

11% 

10% 

11% 

12% 

12% 

16% 

14% 

15% 

14% 

16% 

Source: Kantar Retail ShopperScape ® October 2007–2011 

24% 

21% 

21% 

19% 

21% 

- 13 - 


shoppers; the percentage of shoppers making weekly 

trips to Walmart decreased by 1.4 percentage points. 

Kmart and club channel retailers also experienced a 

decrease in shoppers making weekly trips, while the 

weekly Target shopper base held steady. 

Dollar and drug channels saw an increase in the 

percentage of shoppers making weekly trips— 

indicating that there is some transferring of trips 

occurring. 

34% 

33% 

33% 

32% 

31% 

2007 2008 2009 2010 2011 

52% 

49% 

50% 

50% 

48% 

Ppt Change 

2010-11 

-2.3 

-1.4 

+1.8 

+1.8 

+0.1 

-0.4 

-1.0

However, 36% of shoppers who say that they are shopping 

Walmart less compared to a year ago do claim that they 

are just shopping less overall, and are not necessarily 

transferring their Walmart trips to another retailer (Figure 

3). 

This still means that more than half of shoppers who are 

shopping Walmart less are shopping somewhere else. 

21% of shoppers who are shopping Walmart less say 

that they are shopping conventional supermarkets 

more instead. 

Target also is winning trips from Walmart, with 19% of 

shoppers saying they are shopping Target more. 

Walgreens, Dollar General, Family Dollar, and other 

dollar stores all gain more or less equal percentages 

of Walmart defectors (just under 10% each). 

This, combined with the fact that shoppers are shopping 

supermarkets more, indicates that shoppers are no longer 

as attracted by the “one-stop shopping” appeal of Walmart 

and are likely splitting their trips: using supermarkets for 

certain grocery necessities, and then shopping around 

to find a good value on other items on their lists. The 

growth of dollar store’s weekly shopper base supports the 

prevalence of deal seeking in the shopper landscape. 

Importance of Value: Walmart Shoppers 

Divert to Dollar Channel 

Among those shopping Walmart less, there are some key 

differences in leakage across income groups (Figure 4). 

Just over one-quarter (26%) of higher-income Walmart 

shoppers state that they are now shopping Target more 

often than Walmart—a significantly higher percentage 

compared to low or middle-income shoppers. Downmarket 

shoppers, however, are converting Walmart trips 

to dollar channel trips. Significantly higher percentages of 

down-market shoppers say that they are shopping Dollar 

General (19%) or Family Dollar (19%) more now instead of 

Walmart. 


- 14 - 


Figure 3: Where Shoppers Are Shopping Instead of Walmart 

(Among those who are shopping Walmart/Walmart 

Supercenter less compared with a year ago) 

Just shopping less 

overall 

Conventional 

supermarket 


Walgreens 

Dollar General 

Family Dollar 

Other dollar store 

9% 

9% 

8% 

8% 

19% 


21% 

36% 

Figure 4: Top Retailers Shopping More Often Instead of 

Walmart, by Household Income 

Total 

Down Middle 

Market Market Up 

(Less than ($25K– Market 

$25K) $84.9K) ($85K+) 

(a) (b) (c) 

Conventional supermarket 21% 18% 23% 22% 

a b 

Target or SuperTarget 19% 14% 18% 26% 

Walgreens 9% 11% 8% 8% 

b c 

Dollar General 9% 19% 

b c 

Family Dollar 8% 19% 

Other dollar store (i.e., not Dollar 

General or Family Dollar) 

8% 11% c 

5% 2% 

4% 4% 

8% 4% 

CVS/pharmacy 7% 9% 7% 6% 

Limited assortment/cut-price 

supermarket 

b c 

6% 10% 

5% 4% 

Costco 5% 2% 6% 10% a 

Sam's Club 4% 2% 4% 5% 

Amazon.com 4% 2% 4% 7% a 

Not shopping any retailers more 

often, just shopping less overall 

36% 38% 39% c 

29% 

Note: Bolding/highlighting indicates significantly greater than Total;superscript 

letters indicate significant difference between income groups (95% confidence 

level) 

“Source: Kantar Retail ShopperScape ® May 2011

In fact, dollar stores prove to be an increasingly popular 

destination among Walmart shoppers in general 

(Figure 5). The percentage of monthly Walmart shoppers 

shopping the dollar channel in any given four-week period 

has risen overall from since August 2010, with a notable 

spike during 2010’s holiday shopping season. 

This cross-shopping percentage has increased 

significantly for the channel as a whole from 2010–2011, as 

well as individual small-format value retailers (Figure 6). 

Additionally: 

The percentage of Walmart shoppers cross-shopping 

online retailers has increased significantly—most 

notably Amazon (42% of monthly Walmart shoppers, 

up from 34% last year), and, to a lesser extent, eBay. 

com (24% of Walmart shoppers). 

JCPenney, Kmart, and Macy’s also gained Walmart 

shoppers from 2010–2011. 

59% 

34% 


40% 41% 

31% 32% 32% 29% 29% 28% 28% 

- 15 - 


Figure 5: Percentage of Monthly Walmart/Walmart 

Supercenter Shoppers Who Shopped Dollar Stores 

during Past Four Weeks 

Source: Kantar Retail ShopperScape ® August 2010-October 2011 

61% 22% 22% 22% 

42% 41% 20% 18% 17% 18% 

40% 17% 17% 16% 

33% 32% 31% 31% 31% 30% 30% 

24% 22% 22% 21% 20% 19% 19% 19% 18% 17% 15% 

Dollar Channel 

Figure 6: Top Retailers Shopped in the Past 4 Weeks by Monthly Walmart/Walmart Supercenter Shoppers 

Amazon.com 

Walgreens 


JCPenney 

Lowe's 

Source: Kantar Retail ShopperScape ® January-October 2010; January-October 2011 

The Home Depot 

Dollar Tree 

Kohl's 

CVS/pharmacy 

Dollar General 

68% 

66% 

64% 

62% 

60% 

58% 

56% 

54% 

52% 

eBay.com 

Best Buy 

Sam's Club 

Family Dollar 

Kmart/Big Kmart 

Netflix 

Macy's 

Barnes & Noble 

2010 

2011 

Staples 

Sears 

Big Lots

Value seems to be the driving force in Walmart’s leakage 

to dollar. Among Walmart shoppers who also shopped 

a dollar store, over half said that their ability to get 

individual items for less money as well as a less expensive 

basket overall, are very important factors driving them to 

shop dollar stores (Figure 7). Convenience also plays a 

role here, with just about half of Walmart shoppers rating 

dollar stores’ convenient location and quick shopping 

experience as very important factors—significantly higher 

percentages compared with all dollar store shoppers. 

Not only are Walmart shoppers looking for a better 

value overall, they also place value on a quick, easy, and 

convenient shopping experience—making the Internet 

another popular shopping option for Walmart shoppers. 


- 16 - 

One-Stop Shopping … Online: Walmart 

Shoppers Make Amazon Part of Their 

Regular Routine 

In terms of gaining Walmart shoppers year-to-year, 

Amazon.com is second to the dollar channel (see Figure 

6). The percentage of monthly Walmart shoppers who 

shopped Amazon has risen significantly from 34% in 2010 

to 42% in 2011. This percentage has increased steadily 

overall from February 2007 to October 2011 (Figure 8). 

As a result, Amazon is now the retailer most frequently 

cross-shopped by regular Walmart shoppers, taking the 

top spot from Target in the past year. 

Figure 7: % Shoppers Rating Factors as “Very Important” in Causing Them to Shop Dollar Stores 

(among shoppers who have shopped a dollar store retailer in the past 4 weeks) 

Can get individual items for less money 

Less expensive overall 

Convenient location 

Can get in and out quickly 

Best option considering economic situation 

Easier to shop 

Friendly neighborhood atmosphere 

Wide variety of national brands 

"Thrill of the hunt" 

Limited assortment = less temptation 

NOTE: Star indicates significantly higher percentage compared to all shoppers (95% confidence level). 


18% 

20% 

24% 

24% 

24% 

25% 

32% 

30% 

36% 

36% 


39% 

38% 

45% 

48% 

52% 

54% 

57% 

59% 

66% 

68% 

Monthly WM/WMSC Shoppers 

All Shoppers

Amazon is especially relevant for younger Walmart 

shoppers. Gen Y Walmart shoppers are more likely to 

have incorporated Walmart into their weekly shopping 

routine: 24% of Gen Y shoppers shop Amazon on a weekly 

basis compared with 17% of all Walmart shoppers 

(Figure 9). Younger Walmart shoppers also are more 

likely to belong to an Amazon loyalty program—such as 

Amazon Mom or Amazon Subscribe & Save (Figure 10). 

As with the discounter/dollar channel, value is a big factor 

in causing Walmart shoppers to shop online overall (not 

just Amazon.com). Significantly more Walmart shoppers— 

nearly three-quarters—rated the fact that they can get 

lower prices on specific items as very important in causing 

them to shop or purchase online, compared to all online 

shoppers. Walmart shoppers also are more likely to value 

the instant replenishment options available online—which 

are increasingly popular components of Amazon’s offer 

(Figure 11). 


Figure 9: Amazon Shopping Frequency 

68% 

33% 

18% 

17% 

72% 

27% 

21% 

24% 

All Walmart Shoppers Gen Y Walmart Shoppers 

Source: Kantar Retail ShopperScape ® July 2011 

Less than Once a 

month 

1–3 times/Month 

Weekly 

- 17 - 


Figure 8: Percentage of Monthly Walmart/Walmart 

Supercenter Shoppers Who Shopped Amazon.com 

during Past Four Weeks 

Source: Kantar Retail ShopperScape ® February 2007-October 2011 

Figure 10: Membership in Amazon.com Programs 

Amazon Mom 

Subscribe & Save 

4% 

5% 

5% 


10% 

Gen Y Walmart 

Shoppers 

All Walmart Shoppers


- 18 - 


Figure 11: % Shoppers Rating Factors as “Very Important” in Casuing Them to Shop/Purchase Online 

(among shoppers who have shopped online during the past 6 months) 

NOTE: Star indicates significantly higher percentage compared to all shoppers (95% confidence level). 


Free shipping 

I can get lower prices for specific items I want 

Ability to browse at my leisure 

Ability to shop any time 

Convenience 

Enormous variety of products 

Free return shipping 

Shopping/purchasing online saves time 

Availability of good coupons/promotional codes 

Availability of customer reviews of products 

Tax-free purchases 

Shopping/purchasing online is entertaining/fun 

Credit card rewards 

Site recommends products based on past purchases 

Availability of instant replenishment option on products I 

purchase regularly 

21% 

20% 

20% 

17% 

19% 

17% 

28% 

25% 

48% 

47% 

48% 

46% 

47% 

47% 

57% 

57% 

60% 

60% 

65% 

63% 

73% 

71% 

71% 

70% 

69% 

68% 

69% 

70% 

77% 

78% 

Monthly Walmart / 

Walmart Supercenter 

Shoppers 

All Shoppers

Amazon.com Continues Move Toward Being a Mainstream 

Shopping Destination 

Amazon’s place as a holiday retail powerhouse is 

nothing new: Amazon has been an extremely popular 

destination for holiday shopping for several years now. 

But for a growing number of shoppers, the online giant is 

increasingly a part of regular shopping routines, and will 

serve as a major disruptor for an increasing number of 

categories in years to come. 

59% 

56% 

53% 

Source: Kantar Retail ShopperScape ® , December 2009, 2010, 2011 


40% 

38% 

46% 

46% 45% 

41% 

WMT/WMSC Amazon.com Target/ 

SuperTarget 

Figure 1: Top 10 Retailers Shopped for Holiday Gifts 

(among holiday gift shoppers) 

33% 33% 33% 

31% 

29% 30% 

- 19 - 

Amazon’s dominance during the holiday season is wellestablished. 

Among the 35 retailers and channels tracked, 

Amazon.com is the only retailer/channel to have grown 

its holiday shopper base for both of the past two holiday 

seasons. It had been the third most-shopped retailer for gifts 

in 2009 and 2010, but as its holiday shopper base grew and 

Target’s shrank in 2011, Amazon ended up being the second 

most-shopped retailer for holiday gifts in 2011. 

23% 

14% 

Kohl’s JCPenney Small-format 

value stores 

2009 2010 2011 

29% 

26% 25% 

23% 

26% 25% 25% 

23% 22% 23% 22% 22% 

Best Buy Toys "R" Us Macy’s Other online-only 

retailers

Having just had its best holiday season ever, as Amazon 

continues to leverage its online and digital strengths (such 

as enticing shoppers to collect brick-and-mortar pricing 

information using its Price Check app) to get even smarter 

about its shoppers, it is poised to embed itself in shopping 

patterns year-round. 

Because of its role as a key holiday shopping destination, 

Amazon has become a major threat in key categories. For 

instance, about one-third of toy shoppers at major mass 

and toy retailers reported having also shopped Amazon. 

com for toys during the previous six months (Figure 2). In 

fact, many more toy shoppers of multichannel retailers 

report cross-shopping Amazon.com for toys than report 

shopping that multi-channel retailer’s Web site. 

Amazon is moving well beyond serving as just a holiday 

shopping destination that lures shoppers with deep 

discounts and in-stock positions on hot gifts. Increasingly, 

Amazon is becoming part of shoppers’ routines throughout 

the year. The percentage of shoppers who report having 

shopped Amazon.com on a recent basis has risen steadily 

since January 2007 (Figure 3). 


Amazon.com Continues Move Toward Being a Mainstream Shopping Destination 

Figure 2: Cross-Shopping Web Destinations for Toys Among In-Store Toy Shoppers 

Walmart/ 

WMSC 

Store 

Target/ 

SuperTarget 

store 

Kmart 

store 

Note: Blue highlighted cells show the percent of a retailer’s in-store toy shopper who cross-shopped that retailer’s Web site 

Source: Kantar Retail ShopperScape ® , March 2011 

- 20 - 

Figure 3: Amazon.com Past Four-Week Shopping Incidence 

Source: Kantar Retail ShopperScape ® , January 2007-November 2011 

Toys 

"R" Us 

store 

Babies 

"R" Us 

store 

Dollar 

General 

Family 

Dollar 

Amazon.com 27% 36% 33% 35% 34% 33% 33% 48% 

Walmart.com 17% 20% 29% 19% 23% 26% 21% 26% 

Target.com 13% 18% 23% 17% 24% 17% 19% 27% 

ToysRus.com 11% 17% 20% 20% 22% 12% 13% 19% 

eBay.com 11% 11% 15% 10% 10% 22% 17% 25% 

Kmart.com 5% 7% 19% 7% 10% 10% 14% 11% 

Other toy Web site 4% 6% 7% 5% 6% 4% 6% 9% 

BabiesRus.com 1% 3% 5% 3% 19% 3% 2% 3% 

eToys.com 1% 1% 3% 2% 3% 3% 3% 3% 

diapers.com 1% 1% 1% 1% 7% 1% 0% 1% 

60% 

50% 

40% 

30% 

20% 

10% 

0% 

28% 

Jan-07 

Apr-07 

Jul-07 

Oct-07 

Jan-08 

Apr-08 

Jul-08 

Oct-08 

Jan-09 

Apr-09 

Jul-09 

Oct-09 

Jan-10 

Apr-10 

Jul-10 

Oct-10 

Jan-11 

Apr-11 

Jul-11 

Oct-11 

45% 

Drug 

stores

In fact, Amazon.com is the only retailer among the 

200+ tracked by ShopperScape ® to enjoy such a 

relentless increase in its shopper base over this time 

period. 

Note the small dip—and nearly instantaneous 

recovery—in Amazon.com’s shopping incidence in 

October 2008 at the peak of the financial crisis on Wall 

Street. 

Nearly three-quarters (72%) of all shoppers report that 

they shop Amazon.com, while just over one-third (36%) say 

they shop the online retailer on at least a monthly basis 

(Figure 4). 

Amazon’s shopper penetration is highest among 

younger shoppers: nearly eight in 10 Gen X shoppers 

report shopping Amazon.com with some frequency, 

while over one-half (53%) of Gen Y shoppers say they 

shop the online retailer on at least a monthly basis. 

Over one-quarter (27%) of Gen Y shoppers shop 

Amazon.com on a weekly basis! 

While Amazon may still be somewhat of a novelty to many 

older shoppers, younger shoppers have “grown up” with 

the online retailer. As these younger shoppers begin to 

enter the household formation and accumulation stages of 

Total 

Shopper 

Base 


Figure 4: Amazon.com Shopping Frequency 

by Generational Cohort 

72% 78% 79% 72% 58% 

36% 

19% 

17% 

All 

Shoppers 

26% 

26% 

27% 

21% 

22% 

Note: Total Shopper Base = percent of shoppers who say they shop Amazon.com 

less than once a month or more frequently 

Source: Kantar Retail ShopperScape ® , July 2011 

36% 


39% 

18% 

15% 

Gen Y Gen X Baby 

Boomers 

Weekly Monthly Less than once a month 

36% 

12% 

9% 

Seniors 

- 21 - 

Figure 5: Gen Y’s Shopping Frequency at Key Retailers 

Total 

Shopper 

Base 

90% 80% 78% 69% 

23% 

26% 

41% 

Walmart/ 

Walmart 

Supercenter 

28% 26% 

15% 

29% 26% 24% 

23% 27% 30% 

Target/ 

SuperTarget 

Amazon.com Conventional 

Supermarkets 


Note: Total Shopper Base = percent of shoppers who say they shop Amazon.com 

less than once a month or more frequently 


their lives, Amazon will continue to play a prominent role. 

To better understand just how important Amazon is to Gen 

Y shoppers, a comparison of Gen Y shoppers’ shopping 

frequency of the online giant compared with major mass 

players is revealing (Figure 5). 

The vast majority (90%) of Gen Y shoppers shop 

at Walmart, but Amazon.com is not far behind the 

world’s largest retailer. 

About two-thirds (67%) of Gen Y shoppers say they 

shop Walmart on at least a monthly basis, while just 

over one-half (53%) of those shoppers report shopping 

Amazon at least monthly. 

Amazon is neck-and-neck with Target in terms of 

attracting Gen Y shoppers, and Amazon actually 

edges Target in terms of drawing these shoppers on a 

monthly basis. 

More Gen Y shoppers shop Amazon.com than shop at 

conventional supermarkets. 

The wealth of young shoppers who turn to Amazon on a 

regular basis is further reflected in Amazon’s shopper 

profile, which skews toward younger and more affluent 

shoppers (Figure 6).

No retailer is immune from Amazon, and retailers should 

assume that most of their shoppers are visiting Amazon. 

com, even if only to check prices or read reviews (Figure 7). 

Among mass retailers, Target and Costco share the 

highest percentage of their core monthly shoppers 

with Amazon (82%). About one-quarter of each of 

those shopper bases shops Amazon on a weekly basis. 

Monthly shoppers of apparel retailers are also very 

likely to be Amazon shoppers: well over one-half of 

Macy’s and Kohl’s monthly shoppers (and Nordstrom’s 

past four-week shoppers) also are monthly Amazon 

shoppers. 

Specialty retailer Toys “R” Us is especially vulnerable 

to Amazon, with 85% of its core monthly shoppers 

cross-shopping the online giant. 

Amazon’s loyalty programs (Amazon Mom, Subscribe & 

Save, and Prime) will only help to solidify its place as a 

cornerstone of shopping routines, further moving Amazon 

away from a once-a-year holiday shopping destination. 

Total 

Shopper 

Base 


- 22 - 

Figure 6: Demographic Profile of Amazon.com Shoppers 

All 

Shoppers 

Amazon.com 

Past 

4-Week 

Shoppers 

Monthly 

Shoppers 

Age 18 –24 6% 6% 7% 

25 –34 17% 21% 22% 

35 –44 19% 21% 20% 

45 –54 21% 21% 21% 

55 –64 17% 16% 16% 

65+ 20% 14% 14% 

Income < $25,000 25% 19% 18% 

Presence 

of Children 

$25,000–$49,999 25% 23% 22% 

$50,000 –$74,999 18% 19% 19% 

$75,000 –$99,999 12% 14% 14% 

$100,000+ 20% 25% 26% 

Children under 19 

at home 

No children 

under 19 at home 

25% 28% 27% 

75% 72% 73% 

Note: Bolding/highlighting indicates significantly greater than all shoppers 

(95% confidence level) 

Source: Kantar Retail ShopperScape ® , January-November 2011 

Figure 7: Amazon.com Shopping Frequency among Monthly Shoppers of Select Retailers 

72% 82% 69% 76% 74% 82% 74% 73% 82% 81% 86% 85% 

36% 

19% 

17% 

32% 

25% 

24% 

33% 

18% 

All Target/ Walmart/ 

Shoppers SuperTarget WMSC 


33% 

23% 19% 20% 21% 

17% 21% 22% 23% 22% 21% 

32% 28% 

Note: Total Shopper Base = percent of shoppers who say they shop Amazon.com less than once a month or more frequently 


33% 

39% 

31% 

CVS Walgreens Costco Sam’s 

Club 

35% 

18% 


29% 31% 

22% 

22% 

31% 

22% 

33% 

14% 

16% 

55% 

Kroger Macy’s Kohl’s Nordstrom* Toys “R” 

Us

Despite the relative newness of Amazon Mom and 

Subscribe & Save, both programs are gaining traction, 

especially among key demographic groups 

(Figure 8). Membership in these programs has the 

potential to dramatically change the nature of trips to 

mass and grocery retailers, as shoppers satisfy some 

of their core baby and household essentials needs via 

Amazon. 

Overall, about 5% of shoppers are members of 

Amazon Mom and/or Subscribe & Save. Monthly 

Amazon.com shoppers are significantly more 

likely than average to be members of each of those 

programs. 



- 23 - 

Monthly Target shoppers are significantly more likely 

than the average shopper to be members of Amazon 

Mom, which might drastically affect the way those 

moms shop Target on a typical trip. 

Membership in both of the Amazon programs is 

especially high among two key demographic groups: 

Gen Y moms (who are just starting their household 

formation and accumulation years) and affluent Gen 

X-ers (who have substantial shopping lists requiring 

a wide variety of goods to fill and high spending 

potential). Participation in Amazon Mom and 

Subscribe & Save helps to ingrain Amazon into those 

shoppers’ shopping routines, and will shape their 

shopping habits and retail expectations going forward. 

Figure 8: Membership in Amazon Programs, among Monthly Shoppers of Key Retailers and Key Demographic Groups 

All 

Shoppers Amazon.com 

Shopped Monthly at Retailer 

Target/ 

SuperTarget 

Note: Bolding/highlighting indicates significantly greater than all shoppers (95% confidence level) 


Walmart/ 

Walmart 

Supercenter 

Gen Y 

Moms 

Affluent Gen 

X (Annual HH 

Income $85k+) 

Sample Size 4061 815 1058 2154 132 429 

Amazon Mom 4% 11% 6% 4% 20% 12% 

Amazon Subscribe & Save 5% 13% 6% 5% 16% 7% 

BOTH Amazon Mom and Subscribe & Save 2% 6% 3% 2% 11% 4% 

Neither of these 93% 82% 91% 93% 76% 86%

Online Shopping: The New General Store 

It is often assumed that shoppers shop and purchase 

online because they tend to be disproportionately 

motivated by either saving money or saving time. Despite 

this conventional thinking, ShopperScape ® data show that 



- 24 - 

the reasons shoppers give for shopping and purchasing 

online reflect a strong orientation toward both value and 

convenience (Figure 1). Marketers selling online will need 

to meet both requirements. 

Figure 1: Reasons for Shopping Online 

(Among online shoppers; percentage rating as “very important”) 

Free shipping 

Lower prices for items I want 

Convenience 

Can browse at leisure/no pressure from sales people 

Can shop any time day or night 

Large variety of products means I can get what I want 

Free return shipping 

Saves time 

Tax-free purchases 

Availability of good coupons/promotional codes 

Availability of customer reviews 

Shopping/purchasing online is entertaining/fun 

Credit card rewards 

Availability of instant replenishment option 

Get relevant recommendations based on past purchasing 

17% 

17% 

20% 

25% 

47% 

47% 

46% 

57% 

60% 

63% 

71% 

70% 

70% 

68% 

78%

Value-oriented reasons top the list in terms of the percent 

of shoppers who indicate they are “very important” 

reasons to shop online: over three-quarters of online 

shoppers (78%) cite free shipping, followed by 71% citing 

low prices. The next three reasons for shopping and 

purchasing online all have to do with ease of shopping: 

convenience (70%), the ability to browse at one’s leisure 

with no pressure from sales people (70%), and the ability 

to shop any time of day or night (68%). 

One-quarter (25%) of online shoppers say the 

entertainment aspect of online shopping is very important. 

Younger shoppers’ evaluation of what is “very important” 

to them as online shoppers points to a shopper base that 

has differentiated priorities vs. all shoppers (Figure 2). 

Shoppers in the Gen Y cohort are significantly more likely 

to value the social and fun aspects of shopping online. 


- 25 - 

They also are more inclined to seek out discounts, and 

the appeal of instant replenishment options (e.g., Amazon 

Subscribe & Save) is highest among shoppers in this 

group. Consequently, expect shoppers in this generational 

cohort to have higher expectations for the online shopping 

experience, as well as different demands on their store 

shopping experiences as they transition some of their 

consumables purchasing to online retailers who can 

deliver goods on a pre-determined, scheduled basis. 

Gen X shoppers, in a reflection of their life stage—i.e., 

smack in the middle of time-starved and financially 

constrained family formation years—are perhaps the 

most demanding shoppers. Eight of 15 possible reasons 

for shopping online—everything from price and time 

savings to selection/variety—are more important to these 

shoppers than all shoppers. 

Figure 2: Reasons for Shopping Online, by Generational Cohort 

(Among online shoppers; percentage rating as “very important”) 

Generational Cohort 

All Shoppers Gen Y Gen X Boomers Seniors 

Sample Size 2639 344 859 976 460 

Free shipping 78% 76% 80% 79% 75% 

Lower prices for items I want 71% 73% 76% 74% 56% 

Convenience 70% 67% 72% 71% 64% 

Can browse at leisure/no pressure from sales people 70% 66% 73% 72% 64% 

Can shop any time day or night 68% 69% 73% 69% 58% 

Large variety of products means I can get what I want 63% 64% 66% 64% 56% 

Free return shipping 60% 54% 61% 62% 60% 

Saves time 57% 50% 62% 60% 48% 

Availability of good coupons/promotional codes 47% 55% 54% 44% 31% 

Tax-free purchases 47% 48% 44% 50% 43% 

Availability of customer reviews 46% 55% 53% 42% 38% 

Shopping/purchasing online is entertaining/fun 25% 42% 31% 20% 13% 

Credit card rewards 20% 19% 23% 18% 17% 

Get relevant recommendations based on past purchasing 17% 31% 19% 13% 12% 

Availability of instant replenishment option 17% 23% 21% 14% 13% 

Shading indicates shoppers in generational cohort significantly more likely than all shoppers to rate reason as a “very important” reason to shop online (95% 

confidence level) 

Boxing indicates shoppers in generational cohort significantly less likely than all shoppers to rate reason as a “very important” reason to shop online (95% 

confidence level) 


Online Shopping: The New General Store

Women’s apparel is the most common product shopped 

for online (28%), followed by books and women’s shoes. 

Fourth on the list is the consumables category with the 

largest shopper base—beauty/skin care products (15%). 

Otherwise, online grocery shopping remains more the 

exception than the norm: fewer than 5% of shoppers 

report having shopped for food or non-edible household 

essentials online during the past six months (Figure 3). 


- 26 - 

The top five categories with the highest shopper bases 

also have the largest purchaser bases—plus the e-book 

category is a top-five category in terms of the size of its 

purchaser base. However, when calculating conversion 

rates (i.e., what percent of those who shopped the category 

online made an online purchase in the category), two 

categories with smaller shopper and purchaser bases end 

up on the top five list: prescription drugs and over-thecounter 

drugs/vitamins. 

Figure 3: Past Six-Month Online Shopping and Purchasing: All Shoppers 

Shopped Purchased Conversion* 

Women's apparel 28% 18% 62% 

Hardcover/paperback books 21% 15% 72% 

Women's shoes 19% 9% 46% 

Beauty/skin care products 15% 9% 60% 

DVD/Blu-ray movies 15% 9% 61% 

CE (not computers) 13% 5% 37% 

E-books 12% 10% 77% 

Laptop/desktop/netbook computer 11% 4% 32% 

OTC drugs/vitamins 10% 6% 61% 

Men's apparel 10% 6% 56% 

Furniture 9% 3% 30% 

Video games 9% 5% 55% 

Prescription drugs 9% 6% 75% 

Pet food/supplies 8% 4% 54% 

Toys/dolls/games 8% 4% 55% 

Infants/toddlers/kids apparel 8% 4% 54% 

School/home office supplies 7% 3% 43% 

Small housewares 7% 3% 38% 

Personal care products 7% 4% 55% 

Men's shoes 7% 3% 40% 

Tablet computer 6% 1% 19% 

Toddlers/kids shoes 6% 2% 42% 

Home textiles 5% 2% 38% 

Building products 5% 1% 24% 

Baby supplies 5% 3% 56% 

Shelf-stable/non-perishable food 4% 2% 55% 

HH cleaning products 4% 2% 46% 

Hand/power tools 4% 1% 33% 

Fresh food 4% 1% 39% 

HH paper products 3% 2% 51% 

Note: Top 5 categories are outlined in each column. 

* Calcluated as % purchased/% shopped 


Online Shopping: The New General Store

Mapping the categories by shopper base and conversion 

rate shows that just a handful of categories have created 

a regular, sizable online purchaser base (Figure 4). 

Categories in the upper-right quadrant (women’s apparel/ 

shoes, HBC, hard copy and e-books, DVD/Blu-ray movies, 

and men’s apparel) are “high shop, high purchase” 

categories: a higher-than-average percentage of shoppers 

shop for these products online, and a higher-than-average 

percentage of shoppers ultimately purchase those 

products online. 

Consumer electronics appear to be the most 

“browsed for” product online (among those tracked in 

ShopperScape ® ). About 13% of shoppers have shopped for 

the category online in the past six months, but only about 

Percentage of Online Shoppers Who Purchased Online 


75% 

65% 

55% 

45% 

35% 

25% 

15% 

Figure 4: Online Shopping and Purchasing by Category 

Video games 

DVDs/Blu-ray movies 

Baby supplies 

Men's apparel/shoes 

Non-food grocery items 

Toys/dolls/games 

Infants/toddlers/kids apparel 

Food grocery items 

School/home office supplies 

Tablet computer 

Prescription drugs 

Homegoods 

Furniture 

E-books 

Consumer electronics 

- 27 - 

5% of shoppers actually made a consumer electronics 

purchase online, for a “conversion rate” of 37%. Of 

course, given the often long research cycle associated 

with these purchases, many of the recent category 

shoppers may ultimately end up purchasing online. Kantar 

Retail forecasts that 25% of all sales in the category will 

come through online channels in 2017. 

Categories in the upper-left quadrant—prescription 

drugs in particular—are those for which a relatively small 

number of shoppers shop online, but a high percentage 

of those shoppers make a purchase online. Conversion 

is high because these categories lend themselves to very 

focused, mission-oriented shopping trips. 

Laptop/desktop/netbook computer 

Hardcover/paperback books 

0% 5% 10% 15% 20% 25% 30% 35% 


HBC 

Percentage Shopped for Product Online in Past 6 Months 

Online Shopping: The New General Store 

Women's apparel/shoes

KantarRetailiQ.com / KantarRetailiQ.eu / KantarRetailiQ.cn 

KantarRetail.com

SHOPPER INSIGHTS - Kantar Retail iQ

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