As Sears and Kmart stores close, where will their shoppers go?

Where will shoppers go if Sears and Kmart close?

For those of us interested in the retail space, foot traffic, or simply business in general, the closure of major retail stores like Sears and Kmart is a big deal. Both rank in the top 10 for visit share in the “Department Store” category. That’s a lot of visitation, so as their presence diminishes, other stores stand to gain considerable business. To get an idea of where that might be, we can use Placed Insights to examine two key visitation metrics: customer overlap* and customer affinity.**

Department Stores

While Sears and Kmart are not completely similar (Sears is a mall-based department store while Kmart is geared toward bargain shoppers), they do share a lot of visitation with two other major department stores. Among Sears, Kmart, JCPenney, and Kohl’s, we saw customer overlap between roughly 19-25% last quarter. It wouldn’t be surprising to see more shoppers turn to these stores after Sears and Kmart close.

Specialized Stores

More specialized stores may also see an increase in foot traffic. Sears is known for carrying a broad range of products including electronics, appliances, lingerie, and athletic shoes. Three distinct competitors with significant customer overlap or customer affinity with Sears includes Best Buy (27%), Victoria’s Secret (20%) and Finish Line, which has a 1.53 Customer Affinity index with Sears.

Discount Stores

Dollar-branded stores such as Dollar Tree and Dollar General both stand to gain Kmart foot traffic. Both are in the top 3 in terms of customer overlap, with 37% and 24% respectively. Discount retailers Five Below and Big Lots may also gain customers, as they have a Kmart Customer Affinity Index of 1.26 and 1.23 respectively.

*Customer overlap is the percentage of all visitors to one business (i.e. Sears) that also visited a second business (i.e. Kohl’s) in a given time frame.

**Affinity Index is the likelihood that a given population (i.e. Autozone shoppers) also visited another business (i.e. Whole Foods) in a given time frame, compared to the general U.S. population. For example: if Autozone shoppers have a Whole Foods Affinity Index of 1.50, it means Autozone shoppers are 50% more likely to visit Whole Foods in the given time frame than the general U.S. population.

Black Friday Shoppers – Not Your Average Consumer

As the biggest shopping day of the year, Black Friday is the pinnacle event for deal-hungry consumers who brave the crowds in search of steep discounts and door buster deals. For retailers, understanding who these shoppers are and how they behave is critical to driving more shoppers into their stores and capturing a greater share of holiday dollars.

 

In our recent report, Holiday Shopper Profile: Offline Insights into Thanksgiving and Black Friday Shoppers, we surveyed 14,645 smartphone panelists about their holiday shopping plans and combined this with direct measurement of their offline shopping behaviors to reveal interesting insights into this consumer segment.

 

When asked about their Black Friday shopping plans, nearly half of respondents planned to shop on Black Friday this year, with 1 in 4 still unsure if they will join in on the deal hunting.

  • Although online shopping continues to gain ground, the majority of consumers still prefer brick-and-mortar to click-to-order on Black Friday.

 

Black Friday shoppers are not your typical consumers. Placed found these shoppers displayed strong demographic characteristics to set them apart.

  • Black Friday Shoppers were significantly more likely to be Asian (index 133), Hispanic (114), and African Americans (110) than an average consumer.
  • Shoppers skewed younger, with those ages 25-34 over-indexing the highest, and were significantly more likely to have children.

 

Leveraging Placed Insights to directly measure consumers’ location behaviors, the study analyzed where those that planned to shop on Black Friday had a higher likelihood to visit even before the holiday season officially begins.

 

Not unexpectedly, Black Friday shoppers over-index to discount retailers in October, while at the same time branching out to premium brands such as Coach, Apple Store, and Whole Foods.

  • Based on observed retail visits in October, Black Friday shoppers showed a high affinity for Discount Retailers including Burlington Coat Factory, T.J. Maxx, Marshall’s, and Old Navy which indicates this shopper segment is actively looking for deals during the other 364 days of the year.
  • Apple Store, Coach, and Whole Foods are retailers where Black Friday shoppers over-indexed in October, highlighting this segment’s willingness to move up funnel for selected premium brands.

 

As Black Friday rapidly approaches, retailers that understand the behaviors and characteristics of shoppers roaming their aisles will be best positioned for a positive start to this holiday season.

 

To find out more about Black Friday shoppers, download our latest report.

Placed Selected by Millennial Media to Measure Impact of Mobile Ads on Retail Traffic

How effective are mobile ads?  Placed and Millennial Media are working together to help answer the industry’s $8.5 billion dollar question through a new partnership.

 

Powered in part by Placed Attribution, Millennial Media introduced its new Omni Channel Measurement Suite, which is designed to evaluate and demonstrate the effectiveness of mobile campaigns across a variety of important areas. Placed Attribution is a key part of the new solution, delivering insight into the impact of mobile ads on driving in-store retail visits.

 

According to Placed Founder and CEO David Shim, “The product we’re working on with Millennial Media allows advertisers to track conversions beyond the mobile device itself, and extend measurement into the physical world.”

 

With more than 90% of retail transactions taking place in the physical world, understanding the offline effect of mobile ads is arguably more important for a marketer’s bottom line than CTRs and other on-device metrics; especially for those brands with a brick-and-mortar presence.

 

 

 

Placed Attribution’s programmatic approach to measurement provides advertisers and agencies with consistent metrics to know if ad exposed audiences turned into in-aisle shoppers, with metrics such as Store Visits, Lift, and Demographic Features.

 

Millennial Media is the latest company to join a growing list of partners, which includes xAd and Verve, that are leveraging Placed Attribution to bring improved location intelligence to today’s burgeoning mobile advertising economy.

 

Check out the full announcement here.

 

Visit our website to learn more about Placed Attribution or contact us at info@placed.com with questions.

7 Ways Back-to-School Shoppers Are Using Smartphones

In an increasingly mobile economy, retailers are tasked with learning how to engage with smartphone shoppers in effective ways, whether it’s in stores, at home or on the go. As a result, retailers need to understand how shoppers use mobile devices to interact with their brands, especially during the year’s second biggest shopping season — Back-to-School.

 

In our recent report, Back-To-School Shopping Trends, we uncovered 7 ways that back-to-school shoppers are turning to their smartphones to engage with retailers throughout the shopping experience.

 

Back-to-School Smartphone Usage

#1 Get Coupons and Discounts

Almost half of parents will use their smartphone to find deals, discounts and coupons for the back-to-school season, ranking as the most popular smartphone behavior. This begs the question – how available are you making your deals to mobile users?  The popularity of this activity suggests a great way to drive customers through your aisles, offering a cost-effective option to complement or even replace print advertisement deals.

 

#2 Compare Prices While In-Store

The use that haunts every brick-and-mortar retailer—nearly 2 in 5  parents will use their smartphones to compare prices while in a physical retail store to those online during this year’s back-to-school season. We took a deep view into showrooming earlier this year to find out which retailers should be on high alert.

 

#3 Access a Retailer’s Website or App

Connecting with a retailers’ website or app ranked third and highlights the near necessity of an easy to navigate mobile site or app for today’s retailers.

 

#4 Find a Store Location

How easy is it for your shoppers to find out your location and hours? Our panelists ranked it as the 4th most popular way to use their phone, especially while on the go.

 

#5 Make/Reference a Shopping List

Taking the shopping list digital, 31% of parents planned to use their phones to make and refer to shopping lists. Retailers such as Target are building shopping lists into their apps to further engage with consumers in the purchase planning phase.

 

#6 Get Product Information

Nearly 1 in 4 parents will use their mobile phone to look up product information, highlighting the need for retailers to make information such as price, availability and item specifics easily accessible for information-seeking consumers.

 

#7 Make a Purchase

1 in 5 parents plan to use their smartphone to make a purchase during the back-to-school season, underscoring the importance of having not only a mobile-optimized shopping experience, but a mobile-optimized buying experience as well.

 

Want more back-to-school shopping insights? Download our latest report to find out the trends shaping this back-to-school shopping season.