Nike

DENVER—So much for department stores having a jolly hoiday season, though mass market retailers may be feeling in the spirit. The shopper experience study currently underway by The Integer Group and M/A/R/C Research reveals that department stores continue to see the largest loss of shoppers and have the worst conversion rate, with about half of shoppers leaving without making a purchase. Conversely, mass market retailers such as Walmart and Target are showing a five point increase in shoppers visiting them more often than in previous months and have the best conversion rate, with nine out of ten shoppers leaving the store having made a purchase.

The study also shows that consumers are beginning to define value differently than before. More often consumers are attributing value to price, where the past couple months it was defined as an equal balance between quality and price.

"Across all channels, shoppers continue to report buying cheaper items lately, compared to three months ago," said Randy Wahl, executive vice president, M/A/R/C. "We believe it's safe to predict this trend will continue through the holidays as consumers are trading down, using purchasing tools like coupons, and seeking out cheaper prices."

Study respondents say three out of five brands that best communicate value to them are retailers. Overall, they consider Walmart and Target top value brands. Consumers also ranked top value brands within their respective category, with Nike being on top for clothing and shoes.

"The findings suggest that consumers still seem to be buying their favorite brands, but are looking elsewhere for a better price," said Craig Elston, senior vice president, The Integer Group. "For example, a consumer may not want to compromise on a trusted brand such as Nike so they will decide to buy at Walmart instead of a department store in order to save money, allowing them the comfort of still being able to purchase what they believe to be their top value brand."

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