Consumers Reduce Number of Shopping Trips

CHICAGOConsumers are scaling back on the number of stores they are visiting, concentrating visits on stores known for lower prices, generally visiting stores less frequently and spending less per trip, according to SymphonyIRI Groups new Times & Trends report, The New Path to Purchase: An Escalation of Channel & Consumption Migration."

According to the report, the number of shoppers visiting fewer than five stores has increased every quarter since 2Q09. In contrast, those shopping at five to nine stores in the same timeframe has dropped every quarter but one. The number of people shopping at 10 or more stores remains approximately the same.

Overall, trip frequency began to consistently decline starting in 4Q09, and in 2Q10, declined nearly 2% versus the same period the prior year, driven by declines in the convenience store and mass merchandise channels, which experienced slides of 9% and 7%, respectively. Average purchase occasions remained steady across most other channels.

Dollars per purchase occasion, which were growing at approximately 5% in 3Q08 versus the same period the prior year, fell flat in 3Q09 and are now declining by more than 1%. While grocery, supercenter and club channels have seen average basket size slide over the past year, convenience, dollar and drug stores enjoyed increases of 8%, 3.8% and 1.7%, respectively. 

A majority of trip missions have seen total trips to retailers decline steadily for nearly all categories since 2Q09. The exception is quick trip shopping excursions, which remained constant for the second half of 2009 and then jumped dramatically in 2Q10. Similarly, basket size across trip missions has declined most quarters since 2Q09. Once again, quick trips consistently demonstrating increased basket size each quarter beginning in Q3 2009.

Grocery remains the dominant channel, with 98.4% penetration during the 52-weeks ending June 27, 2010. Other leading channels include drug (77% penetration), mass merchandise (71.6%) and supercenters (69.5%). Supercenters enjoyed the largest penetration increase of 1.9 points, followed by dollar stores with a 0.5 point increase. Mass merchandise penetration decreased 2.3 points, while convenience store penetration declined 1.9 points and drug fell 0.5 points.

Shoppers are not enjoying the same financial success as corporations this spring and summer, and their continued search for lower cost retail channels reflects this," John McIndoe, senior vice president, marketing, SymphonyIRI, said. 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 a shopper visits a store and is unhappy with the experience, she will quickly go elsewhere."