Walmart's Losing Shoppers, Trip Frequency and Loyalty

November 23, 2010

A decline in Walmart shopping trips appears to be driven by customer loss rather than just reduced shopping frequency among current customers, according to research conducted by Blueocean Market Intelligence.

walmart store front Many Walmart shoppers are also spending less overall, due to continued pessimism about the economy, according to the Blueocean report titled “Walmart Customers Rolling Back.”

Factors such as price competition as well as the chain’s remodeling efforts are cited as reasons consumers are shopping elsewhere, which is negatively impacting Walmart’s same-store sales. In the third quarter of 2010, Walmart same-store sales declined 1.3 percent, which was the sixth straight quarter of U.S. sales decreases.

Scottsdale, Ariz.-based Blueocean surveyed 1,800 Walmart shoppers in September to understand why the company’s U.S. sales are not rebounding at the same rate as retail sales in its peer group.

The following are other research findings:

Many who have reduced their Walmart spending report they are finding competitors more affordable and convenient.
Among those leaving Walmart, more than half don’t view Walmart as the “low-price leader.”
Project Impact, a remodeling effort designed to attract higher income shoppers and reduce clutter, has negatively affected customers’ attitudes about Walmart’s variety and brand selection.
Walmart isn’t well positioned for economic recovery, according to Blueocean. Price alone may not lure shoppers from competitors, as most believe Walmart lags on service, variety and quality.

Although Walmart’s overall sales have declined, customers are spending more in select departments including grocery, pet, health and beauty, baby products, and toys and games, the research found.

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Keywords: research, shopper frquency, shopper loyalty

Comments (1) - Post a Comment

The finances of Wal-Mart customers have been pushed to the breaking point by the recession, and company CEO Mike Duke is prepared to take action. Increasing gas prices, increasing rents, and sagging wages and the increased cost of commodities have one customer after another â€œrunning out of cash,â€ according to Duke. Frankly, Wal-Mart is worried. I found this here: Wal-Mart customers are losing too much money, says retailer

Velina G. at 5:00am EDT - May 2, 2011

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