From the Wall Street Journal Blog on 4/14 --Knowing Where and What Your Customers Buy
In tough times, knowing where your customers shop and what they are buying can prove to be a boon to retailers’ strategies to keep their businesses afloat. Last month, Nielsen Inc. released its study, “U.S. Consumer Dynamics Across Channels and Categories,” and found the following resul
Grocery stores continue to capture the highest percentage of consumer dollars, with 33.1%, over other channels such as supercenters (16.2%), warehouse clubs (7.8%) and drug stores (3.8%).
Location matters. In Grand Rapi, Mich, groceries captured almost half of what consumers spent in that city, while grocery stores in New Orlean account for only 20%. Western state residents love warehouse club stores, with the greatest consumer spending inSan Francisc and Seattle. Nine of the top 10 markets for warehouse club store sales were in the West. And while drug stores capture on average 3.8% of consumer spending, in Cleveland, Ohiothe figure is only 9% and in Denver it’s less than 2%.
Lower-income households gravitate toward dollar stores, supercenters and drug stores, while high-income households most often spend their money at club stores. These high earners buy wine, diet aids and floral/gardening products the most.
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