Since the beginning of June, the Mass channel has lost both share of visits and share of transactions within the Retail market.
Though certain events may have played a role, like the wave of civil unrest forcing temporary store closures, some other factors are likely driving Mass’s share declines.
In today's COVID-19 Briefing, we analyzed the underperformance of the Mass channel - specifically where, who, and why.
Where? Foot traffic is gaining in the Northeast, but Mass retailers like Walmart don't have a strong footprint there.
While retail foot traffic has been flat to down in the Midwest, South and West regions, there has been a recent increase in total foot traffic to food retailers in the Northeast, where Mass channel leader Walmart doesn't have as strong a footprint as it does in other regions.
Who? Retailer visits are more frequently occurring among consumer segments that aren't Mass loyalists.
Looser shelter-in-place behaviors are driving increased Retail visit frequency of younger, affluent consumer segments who are also not a focus group of Walmart.
Why? Consumers are choosing where to shop based on value, memberships, and product quality.
Consumers are increasingly choosing retailers by either price / promos, program memberships, and product quality, which may be steering some consumers to Dollar Stores, Club retailers, or Supermarkets over ones like Walmart.
These factors are likely playing a bigger role than ones like increased stock-up activity / trip consolidation, or the growth of online ordering, both of which could disproportionally lower foot traffic volume to the Mass channel.
Attend the COVID-19 Briefing webinar series
This analysis came from Sense360's COVID-19 webinar series. We present free, real-time
- Twice a week, every Tuesday and Friday morning
- 9:30 - 10am Pacific / 12:30 - 1pm Eastern