Price and Value Are Driving Retail Business
Consumers are definitely thinking about their wallets when it comes to shopping.
A recent survey by the International Council of Shopping Centers shows that the majority of U.S. adults are loyal to brands and retailers because of price and value.
Some 92 percent of customers said that price savings keeps them loyal to stores and brands, followed by 79 percent who said they take into consideration product quality and 71 percent noting that a variety of products nudges them to shop in the same stores.
Customer service is as important as ever as 62 percent of consumers said they are willing to spend more if their shopping experience is customized to their personal interests.
In addition, slightly more than eight out of 10 people surveyed said they liked to see, touch, try on and interact with products, which helped keep them loyal. However, 82 percent of those polled said they would buy elsewhere if they had a negative shopping experience or encountered a rude employee.
“Retail is a highly competitive industry and the well-informed consumer has more influence on retailers and brands than ever before,” said Tom McGee, president and chief executive of the ICSC.
When asked which type of brands they prefer buying, 90 percent said they gravitate toward national brands versus local brands. Some 79 percent of shoppers said they are loyal to national brands when it comes to electronic devices such as mobile phones and televisions, followed by apparel and footwear with 65 percent.
When it comes to different generations, millennials said the greater the variety of brands offered by a store, the more likely they are to frequent that store, with 80 percent citing variety as a driving force for making purchases.
“As millennials enter their prime spending years, we are going to see a shift in the way they engage with brands and retailers,” McGee said. “It’s crucial for brands and retailers to understand the shopping habits of this demographic so they win their loyalty for the years to come.”