Monday August 30, 2010

Shoppers Reduce Trips, Visit Fewer Stores

Chicago — Consumers have reduced shopping trips and are visiting fewer stores, concentrating visits to those with the lowest prices while spending less per outing, a study finds.

SymphonyIRI Group, Inc. reports the number of shoppers visiting fewer than five stores has increased each quarter since the second quarter of 2009, while those shopping between five and nine stores during that same period has declined for all but one quarter.

Trip frequency has also fallen since the final quarter of 2009, witnessed most in c-stores and mass channels, which have had declines of seven and nine percent, respectively. SymphonyIRI reports average purchase occasions in other channels have remained relatively constant.

While total trips have declined, quick trips have remained constant and basket size for “need it now” excursions have increased since the third quarter of 2009, the researcher finds.

Overall dollars per purchase occasion fell flat in the third quarter of 2009, and have since been declining by around one percent. Grocery, supercenters and clubs have had basket size decrease during that period, while convenience, dollar and drug stores have posted increases of eight percent, 3.8 percent and 1.7 percent, respectively.

“In addition to potential pressure on retailer revenues and margins, these trends point to managers having fewer chances to ‘get it right’ with shoppers. If shoppers visit a store and are unhappy with the experience, they will quickly go elsewhere,” says John McIndoe, senior vice-president of marketing for SymphonyIRI.