Shoppertunities Kerry Chipp 15 May 2014
Note of thanks to sponsor “there is extensive shopper behaviour research conducted at the level of individual malls, but limited comparative data for the category. Primedia Unlimited Mall Division seeks to enable a better understanding of how consumer intent translates into shopper behaviour and retail sales”
Background
Context With an estimated R407 billion* spent in shopping centres in 2013 Which accounts for 70% of all retail spend in 2013 And super regional and regional shopping centres attracting an average footcount of 800,000* consumers a month Understanding who these consumers are, how and what they buy and what influences their purchases is paramount *SACS2013 Fact Sheet *Average of audited foot counts across super regional and regional malls
Methodology Fieldwork conducted by AC Nielsen, overseen by Dr Clive Corder and Kerry Chipp 7 Super regional and regional malls in Gauteng, KZN and Western Cape Surveyed 4200 n = 600 per centre Sampled two weeks at the end Nov 2013, every day across 4 intervals each day Mall intercept questionnaire randomly sampled across entrances, time of day and day of week Two questionnaires one on entry and other on exit
Who did we speak to? Profiles
Spread across the main centres 100% 90% 80% 70% 60% 50% 33% 28% 27% 40% 30% 12% 20% 10% 0% Gauteng KZN Western Cape Pretoria Total n = 10669 Please note data weighted Un-weighted total 4200
Spread of ages, races and across week activity More females than males 100% 90% 80% 70% 64% 63% 60% 51% 50% 40% 36% 33% 30% 27% 30% 26% 20% 15% 14% 14% 12% 10% 10% 3% 0% 15 - 24 25 - 34 35 - 49 50+ Black White Indian Coloured Male Female Daily Weekly Monthly Less often Age Race Gender Frequency of visit
What did we ask? On Entry • Visit frequency; visit timing (day, week, month) • Overlap with other malls in the region • Travel time, mode and origin • Planned visits • Reason for coming to mall On Exit (for a voucher) • Types of stores visited • Brands visited • Purchase (planned and unplanned) and spend • Reason for purchase • Mall rating on list of criteria • In mall advertising noticed • Marketing activations noticed • Shopper attitudinal statements • Loyalty cards • Cell phone questions (use, social media etc.) • Standard demographics
The mall differentiators
The roles of Super-Regional vs. Regional malls are clearly differentiated by mall goers Super-Regionals Regionals Centred around EXPERIENCE Centred around FACILITATION Rated positively in terms of Rated positively in terms of Accessibility Purpose driven event Comfort Directed purchase Discovery of new products Functional engagement Socialising Ease of navigation is a strong influencer Regionals are more likely to be Super-regionals are more likely frequented regularly for to be used for a wide variety of essential shopping and activities by mall goers activities
The unintentional shopper
Mall goers buy a variety of items when shopping, a third outside of their original intention On average, mall goers visit 9 categories per visit 3 of 9 category visits are unintended at the outset
There are similarities between the top intended categories and top unintended categories visited Top Intended categories Top unintended categories visited visited Food and household products Clothing Department Stores Restaurants and coffee bars Clothing Food and household products Banking Department stores Household groceries Household groceries
Malls attract buyers, who buy things they didn’t even know they needed 8 in 10 mall goers purchase during their visit 4 in 10 purchases are unintended at the outset This equates to R 13.5 billion a month being generated by unintended purchases
Marketing in the last mile contributes to the bottom line 36% of spend was attributed to the presence of in-mall advertising and marketing activations In a mall with an average of 800,000 monthly visitors, 288,000 purport to be influenced by the presence of in-mall advertising and R 12.2 billion spend a month marketing activations being generated by response to in-mall advertising and activations
Shopper behaviours
The research identified 5 distinct shopper behaviours Goal Directed Taking a Break Business Leisure Shopper General Shop Purpose
Goal Directed • Less frequent visitors • Spend on average 1h27 a visit • Value mall navigation tools • Notice in-mall advertising and marketing activations • Although focused on what they have come to buy, they do make unintended purchases Top 5 intended categories Top 5 unintended categories Food and Household Clothing Clothing Cellphone / electronics This group generates around Department store Department R 48.3m in spend in an Accessory / Luggage Restaurant / Coffee bar average mall a month Cellphone / electronics Food and household
Taking a Break • Spend on average 1h27 a visit • Get involved with the demonstrations and engage in marketing events • Go primarily for food and household goods, but often end up buying other categories. • Higher propensity to make Top 5 intended categories Top 5 unintended categories unplanned purchases Food and household Clothing This group generates around Clothing Restaurants / coffee bars R41.6 m in spend in an Department Stores Household groceries average mall a month Household groceries Food and household Banking Department stores
Leisure Shopper • Spend on average 1h42 per visit • Prime purpose is socialising and entertainment • Tend to travel distance to the mall for the occasion • Open to in-mall advertising and demonstrations – like new Top 5 intended categories Top 5 unintended categories experiences Clothing Clothing Food and household Restaurants / coffee • Active on social media and utilise it bars This group extensively Entertainment Food and household generates around Department stores Department store R 18.3m in spend in Accessories / luggage Accessories / luggage an average mall a month
General Shop • Less frequent visitors but travel from far • Spend on average 1h31 per visit • Higher propensity for visit intention to be vague at the outset • Aware and interested in in-mall advertising and marketing activations Top 5 intended categories Top 5 unintended categories Food and household Clothing This group generates around R 9.7m in revenue in an Clothing Restaurant / coffee bar average mall a month Department store Food and household Banking Department store Household groceries Household groceries
The Business Purpose • High frequency visits from local catchment • High propensity to engage in unplanned purchases • Significantly open to marketing activities and in-mall advertising • Engaged actively in online and social media Top 5 intended categories Top 5 unintended categories This group generates around Food and household Clothing R 3.9m in sales in an average Clothing Food and household mall a month Department stores Department stores Banking Household groceries Household groceries Restaurants / coffee bar
Actions and Attitudes
𝑓𝑦𝑢𝑓𝑜𝑒𝑓𝑒 𝑐𝑠𝑝𝑥𝑡𝑗𝑜 𝑡𝑢𝑝𝑠𝑓 𝑤𝑏𝑠𝑗𝑓𝑢𝑧 + = log 𝑡𝑞𝑓𝑜𝑒 𝑢𝑗𝑛𝑓 𝑏𝑤𝑏𝑗𝑚𝑏𝑐𝑚𝑓
Shoppers come to shop, but shoppers with time on their hands are a lucrative market R 789 384 R 800 000 R 700 000 R 600 000 R 500 000 R 360 123 R 400 000 R 358 041 R 300 000 R 200 000 R 160 418 R 113 046 R 114 908 R 115 495 R 107 891 R 81 171 R 72 015 R 100 000 R 40 343 R 24 311 R 35 803 R 30 883 R 32 678 R 31 083 R 11 424 R 0 Purpose of visit
Shoppers tend to say and do very different things They say advertising gets Few were brought in on the them there strength of an offer advertised outside the mall They say they are cautious, but High propensity to visit stores also that they are willing to use not intended and purchase credit items not planned for They say they like to buy items They respond well to specials on special which shows they are deal prone They say advertising and special High propensity to only promotions influence them remember things they need once in the mall, which suggests that triggers in the local environment are effective
The importance of the last mile says “name surname” –
In-mall advertising and marketing activations have a significant impact on consumer purchases Advertising and mall activations accumulate Mall activations create unplanned browsing (statistically significant correlation r = .256) Engaging in product demonstrations Receive store marketing messages Attend marketing events during visit Enter a promotion
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