Affluent Austerity: Is Your Business Feeling It? What to Do About It.
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Transcript of Affluent Austerity: Is Your Business Feeling It? What to Do About It.
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Affluent shoppers with plenty of discretionary income to spend may be the key to driving sales and delivering profits to your retail door. This study examines the affluent shopper and why they shop. Understanding their mindset is key to designing retail experiences that attract them to your retail destination.
4©Unity Marketing, 2014
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5© Unity Marketing, 2014
1,147,500 1,143,031 1,097,323 1,125,548 1,169,181 1,209,964 1,228,710
‐0.4%
‐4.0%
2.6%
3.9%
3.5%
1.5%
‐5.0%
‐4.0%
‐3.0%
‐2.0%
‐1.0%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
1,000,000
1,050,000
1,100,000
1,150,000
1,200,000
1,250,000
2007 2008 2009 2010 2011 2012 2013GAFO = General Merchandise, Apparel and Accessories, Furniture and Other Sales
GAFO Retail Sales & Percent Change
GAFO Retail Sales Iin millions) % Chg Previous Year
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6© Unity Marketing, 2014
87,020 90,003 100,275 97,877 375,175 373,2710
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
Jan‐14 Feb‐14 Mar‐14 Apr‐14 YTD '14 YTD '13
Source: U.S. C
ensus; Adv
anced Mon
thly Retail Trade
Rep
ort
in millions
GAFO Store Sales 2014 Up less than 1% over previous year ‐‐only +.51%
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BEA shows significantly less robust personal consumption from 2010‐2013, as compared to 1998‐2000 and 2004‐2006.
Dismal 1Q2014 GDP report Real gross domestic product ‐‐ the output of goods
and services produced by labor and property located in the United States – actually fell at a 2.9% rate from first quarter from the fourth quarter of 2013, the worse report since 2009..
Personal consumption rose only 1% in 1Q14, after rising 2.0% in 2013.
7© Unity Marketing, 2014
5.3%5.9%
5.1%
2.5% 2.5%3.1%
3.8%3.5%
3.0%
2.2%
‐0.4%
‐1.6%
2.0%2.5%
2.2% 2.0%
1.0%
‐2.0%
‐1.0%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
' 9 8 ' 9 9 ; ; 0 0 ' 0 1 ' 0 2 ' 0 3 ' 0 4 ' 0 5 ' 0 6 ' 0 7 ' 0 8 ' 0 9 ' 1 0 ' 1 1 ' 1 2 ' 1 3 1Q14
SOURCE: BEA
PERSONAL CONSUMPTION EXPENDITURES PERCENT CHANGE FROM PRECEDING YEAR
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8© Unity Marketing, 2014
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When it comes to understanding the retail customer and motivating them to buy goods and services, two issues about the target customers are critical to understand: Who can afford to shop for goods or
services you want to sell, which typically involves income demographics and wealth.
Who has a willingness to shop in order to spend their money on good and services, which is directly related to people’s attitudes and value system.
However, not everyone one who can easily and readily afford to shop are interested in doing so.
The purpose of this study, The Affluent Shopper Trend Report: How to Attract More High‐Potential Affluent Customers to Your Store, is to delve more deeply into affluents’ mindset and attitudes about shopping.
©Unity Marketing, 20149
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What motivates affluent shoppers? How to create experiences that encourage affluents to shop, to shop more often and to spend more money? How to capture customers shopping in other places? What important shopping experiences may be missing and that need to be filled?
Internal CRM data only tells you about the customers you have, not the ones that walk by your doors
10
Source: Affluent Shopper Trend Report: How to Attract More High‐Potential Affluent Customers To Your Store © Unity Marketing, 2014