|
By: Britt Beemer
America's
Research Group
As war with Iraq loomed on the horizon in the spring of 2003,
the stock market was clearly jittery. And so were most
Americans.
The endless talk of war, elevated warnings of terrorist
attacks, a shaky economy with business closings and layoffs
daily, and a harsh winter for much of the country combined to
work against the retail community.
It seemed that shopping, except for essentials, was the last
thing on the minds of many American consumers.
We interviewed 1,000 shoppers for our Consumer Mind Reader ™
survey, and asked if they had postponed any purchase of $500 or
more during the previous month. Normally four to six percent
answer that they have delayed a major purchase, usually citing
the lack of appealing product as the major reason for the
postponement.
But in our latest survey an incredible 16.2 percent of
consumers reported they had decided to postpone purchasing
products costing $500 or more. Their number one reason for the
delay, given by more than a third of those interviewed, was that
they were simply reluctant to spend that much money right now.
High utility bills were cited by 19.1 percent, and not finding
what they wanted finished third with 13.6 percent, followed by
job worries and lack of time.
When asked specifically if they had delayed any purchases
because of anxiety about the war, 6.1 percent reported they had
done so. Airline travel, automobiles and boats took the biggest
hits from American shoppers concerned about the conflict.
Despite the obstacles working against retailers, some
categories did fare well in the first quarter of 2003. Those
that did well focused on the home environment, as Americans
obviously were planning to spend more time around the house.
Home improvement stores showed dramatic improvement, with
33.4 percent of those interviewed saying they had shopped such
stores during the previous month, up from 27.6 percent last
year. The federal government’s advice to Americans to stock up
on duct tape and plastic sheeting probably accounted for some of
the growth, along with the fact that if they were spending more
time at home they wanted to improve their living quarters inside
and out.
Bed and bath stores also showed a huge increase in store
traffic, up from 10.9 percent of shoppers last year to 16.3
percent this spring. Sporting goods sales were also up
significantly, with purchases of firearms playing a role.
Likewise apparel stores showed marked improvement in both
number of shoppers frequenting those stores and in the amount
they spent on each visit. These increases were driven in part by
big mark downs on winter apparel items.
Retail categories taking the biggest hits were major
department stores and the internet. Major department stores saw
more than 17 percent fewer shoppers according to our survey,
with many consumers preferring apparel specialty stores for
products they previously bought in department stores.
Shopping online, in my opinion, has reached its limit for the
time being. The internet is not attracting new consumers to buy
online. In fact, our latest survey showed a decline from $21.54
in 2002 to $15.13 in average purchases online.
Obviously the retail community has faced some serious
challenges outside its control this year with many struggling to
survive. When the recovery comes, the successful retailers will
be those with fresh product, attractive pricing and a new
attitude that makes customers feel good about shopping in their
stores.
Big Winners
- Home Improvement Stores
- Bed and Bath Stores
- Sporting Goods Stores
- Apparel Stores
Big Losers:
- Major Department Stores
- Internet Shopping
|
RTO Online is the official channel for Rent-to-Own Industry News and the
only independent source of news for the rent-to-own, rental-purchase,
lease-purchase trade. RTO Online (Rent to Own Online) represents the choice
of the entire RTO Industry for trusted information, as it happens. |
|
Tell us what you think
Rate the article at the top of this page |
|
|
|
|
