DATE: 28 October 2014
The 2014 Retail Shopper Report by WhyFive revealed 10 ‘golden threads’ that retail industry stakeholders should print out and nail to the wall as they start to strategise winning formulas in an increasingly competitive marketplace.
A 2013 report called ‘Benchmarking the South African Shopping Centre Industry’, pegs the number of shopping malls in SA at over 1 780, covering around 1 million square metres of floor space – more than all the malls in the rest of Africa combined. And in a country where total retail spend is estimated at around R700 billion, more than half, around R400 billion, is dropped in these malls. For retailers and marketers hoping to grab a slice of this massive pie, having a crystal clear view of consumer behaviour, needs and perceptions is an absolute necessity – which is where the Retail Shopper Report by WhyFive comes into play.
WhyFive research specialist Alan Todd explains: “It’s a survey designed to expose what’s driving the shopping behaviour of ‘economically active’ consumers (ie. those living in households earning over R10k a month) – for everything. There’s a fair amount of specific retail data available, but we realized that there isn’t anything resembling a landscape survey that helps shed light on the actual retail experience of the shopper.” He goes on say that, “Being ‘consumer-centric’ in your thinking is a modern marketing mantra that really makes sense – and it’s not difficult. You simply have to be brave enough to ask the question: what does my customer really think? That’s precisely what we did last year and the results were illuminating to say the least.”
The 2014 Retail Shopper Report (based on a online survey with a substantial sample of 8 000 respondents from all over the country) revealed 10 key characteristics that Todd and his colleagues are really excited to explore further in 2015. So what were those ‘golden threads’ last time around?
- Service sucks: perhaps the most disappointing metric to come out of the study is just how bad the scores are for how people perceive service standards at retail outlets. With 46% ticking the ‘generally poor’ box and another 10% selecting ‘terrible’, there’s as much room for improvement in service as there is for new malls!
- Proximity is key: shopping centres are spreading like a virus – particularly in Gauteng. How do they survive? Respondents showed a huge reluctance to travelling far to shop (69% prefer ‘stores that are located nearby’). Whether it’s petrol prices, time constraints or changing expectations, the catchment area for malls has shrunk dramatically.
- Shopping ain’t fun: 80% of shopping is for necessities. So shoppers are mostly there because they have to be, not because they want to be. And 86% are very cautious about spending money. So retailers who find ways to sweeten the occasion are more likely to win wallets and build loyalty.
- The Web of knowledge: apart from the rise in online shopping, an even greater impact of the Internet on the retail environment is that shoppers have never been better informed: 59% always research online for specific categories of goods. And they can get information during and after shopping, so there’s just nowhere to hide if you’re hoping to pull the wool over anyone’s eyes. Transparency is vital.
- Smartphone payment: purchase and payment from mobile devices is considered a great idea (35% would ‘definitely or probably’ use the service) – so Standard Bank’s Snapscan is right on the money. Its potential is limited only by consumer education, something Retail Shopper 2015 is going to unpack in detail.
- The Internet’s for pleasure & leisure: although Internet shopping is on the up, 59% of shoppers use it to buy books, movies and music – pleasure purchases where ‘tangibility’ is irrelevant. This is one of the major trends that RS will start to track.
- Loyalty programs. ‘Benefit programs’ make a massive difference to perception and behavior – and in RS 2014, a massive 96% of respondents claim to use loyalty programs.
- Sales still work: In a similar vein to loyalty, bargain hunting is as important for the uppermost end of the market as it is for the lower. 78% of respondents claimed to ‘sometimes or often’ be tempted to buy products just because they are on promotion.
- Customers want you to talk to them: A hugely important characteristic – and the data shows that printed catalogues and e-mail newsletters rock: 93% sometimes, often or always read catalogues. 46% subscribe to digital newsletters and of those, 99% sometimes, often or always read them. And in-store radio stations? They’re a waste of energy: 64% say they don’t even notice them, or regard them as a waste of time.
- Mall mimicry: Finally, Todd and his colleagues theorise that the proliferation of malls has flattened out the landscape so all malls looks the same: same banks, retailers, outlets, food chains et al. Consumers certainly recognize this characteristic, but for 2015, the RS Report is going to definitively answer whether it’s a good thing – or a great opportunity to differentiate.
Scheduled to go to field early next year, The Retail Shopper Report 2015 will consist of core findings together with bespoke silos that are ‘owned’ by partners in the survey. “The study will benefit any merchandise segment,” says Todd, “because once you’ve got the core data, you can then take those insights down into a special interest area. So our partners in the past have included grocers, fashion outlets, sunglass shops, apparel outlets, building suppliers and even shopping malls. if you’re anywhere in the retail consumer chain and you’re hurting, Retail Shopper will be the most effective pain-relief medication you’ve ever imagined!”
To find out more about partnerships in the 2015 Retail Shopper Report or how you could access the findings, please contact WhyFive head of sales Megan de Kock on 072 060 5241 (email megan@whyfive.co.za) or email info@whyfive.co.za.
