Where Did the Walmart Shopper Go? - WSL Strategic Retail

WHERE DID
SHOPPER GO?
It’s not so simple as trading down
to the dollar channel.
NEW REPORT FROM WSL /STRATEGIC RETAIL
CURRENT DATA + TRENDED + ACTIONABLE + PREDICTIVE

whether Walmart is your biggest customer
or biggest competitor
you need to understand
MYTH 1
Recession or Not, I’m
going to Shop.
Walmart’s core shopper
is gone. Not so. The core
Walmart shopper is still there,
going even more often, and
relying on Walmart now more
than ever... but its core shopper
is not enough.
and what does a
post Walmart world look like for you
This report debunks several
myths surrounding the decline in
Walmart’s US sales,
and gives you an action plan
for a post-Walmart world.
MYTH 2
The core Walmart shopper
drives the company’s sales.
Unlikely.
The core Walmart shopper can’t pull
Walmart out of this hole. They are
less than half of all its shoppers, and
they don’t have enough money to
spend to reverse the decline.

MYTH 6
Walmart shoppers have
less to spend.
Yes, especially its core
shoppers. The more affluent
shoppers, who are rarely in
Walmart, didn’t find enough
reason to stay.
MYTH 5
The “nicer shopping
experience” has damaged
Walmart. Not exactly.
Overall, the improved Walmart
shopping experience gets good
reviews from shoppers – at least
from the half who noticed.
So now what?
Without EDLP, what does Walmart stand for?
Is the passion for Walmart over?
Is Walmart now just another store?
MYTH 3
Walmart shoppers are now
in Dollar Stores.
Don’t blame it all on Dollar
stores. Every channel is doing its
part to undo Walmart.
MYTH 4
Walmart stands for EDLP.
Not anymore.
Walmart used to own the low price
message, but its competitors shouted “low
price” during the recession, and shoppers
listened. (Which is why you can’t blame all
Walmart’s woes on Dollar stores.
THIS HOW AMERICA SHOPS ® REPORT
INCLUDES 8 ACTION STEPS FOR YOU IN A POST-WALMART WORLD
CONTACT US 307 SEVENTH AVENUE SUITE 1707 NEW YORK NY 10001
T 212.924.7780 F 212.924.7608 E INFO@WSLSTRATEGICRETAIL.COM

HOW AMERICA SHOPS ®
WHERE DID THE
GO?
METHODOLOGY
Internet survey; conducted April ‘11. Nationwide sample of 1500 adults
ANALYZED BY
»»
Total
»»
Men and Women
»»
Income: under $25K, $25-$49K, $50K-$99K, $100K+
»»
Age: 18-34, 35-54, 55+
WALMART SHOPPER CELLS
»»
Frequent Shopper
»»
Occasional Shopper
»»
Rare Shopper
PRODUCT CATEGORIES
HEALTH & BEAUTY
Hand & Body Moisturizers
Cosmetics (WOMEN ONLY)
Fragrance (perfume, cologne, etc.)
Hair care products
Men’s grooming products
OTC Medication
Skin care products
Lip care (to prevent dry, cracked, etc.)
Vitamins/nutritional supplements
BABY
Baby personal care (lotions, soaps, etc.)
CLOTHING & FASHION
Active Wear
Clothing
Fashion accessories
Shoes (casual, dressy, sandals)
Sleepwear/ Loungewear/ Lingerie
HOME
Home décor (pillows, bedding, etc.)
Home fragrance/candles
FOOD, BEVERAGE and GROCERY
Bottled water
Breakfast cereal
Candy
Carbonated beverages/ soda
Coffee (instant or ground)
Dairy/milk/eggs
Ice cream/yogurt
Laundry household cleaners/ paper goods
Organic/Natural foods
Pet supplies
Salty snacks (chips, pretzels)
Tea
PRICING
REPORT / ADD-ON: WORKSHOP / PRESENTATION
For more information or to order by credit card, please contact us at info@wslstrategicretail.com or 212.924.7780
(Businesses in NY state, please add 8.375% NY sales tax)
As retail strategists and shopping futurists, we are recognized for our ability to turn shopper insights into smart actionable strategies.
Never before has this been so essential. So let us help you navigate this new shopping world.
307 SEVENTH AVENUE SUITE 1707 NEW YORK NY 10001 T 212.924.7780 F 212.924.7608 E INFO@WSLSTRATEGICRETAIL.COM

IN THIS REPORT
5 . . . BACKGROUND & OBJECTIVES
6 . . . METHODOLOGY
8 . . . HOW TO READ THIS REPORT
9 . . . EXECUTIVE SUMMARY
25 . . . DETAILED FINDINGS
25 . . . Chapter 1: Where Did the Walmart Shopper Go?
29 . . . Chapter 2: The Walmart Shopper: Who Stayed, Who Left
35 . . . Chapter 3: Going Less, Spending Less, and Why
47 . . . Chapter 4: Where is the Walmart Shopper Going?
51 . . . Chapter 5: Walmart Shoppers in Dollar Stores
59 . . . Chapter 6: The Image Challenge to Walmart
65 . . . Chapter 7: The Impact of Walmart Store Changes
75 . . . Chapter 8: Choosing Walmart - Category by Category
81 . . . Chapter 9: The Economic (And Gas Pinch) Outlook for Walmart Shoppers
87 . . . APPENDIX

WALMART SHOPPERS SHOPPING DOLLAR STORES
A majority of Walmart shoppers (59%) shopped Dollar Stores in the past 3
months.
PROPORTION OF
WALMART SHOPPERS SHOPPING DOLLAR STORE
WALMART/
NOT DOLLAR
SHOPPER
41%
59%
WALMART/
DOLLAR SHOPPER
(PAST 3 MONTH SHOPPERS)
74% of Walmart shoppers are in Dollar Stores at least once a month. 49%
are there several times a month. That’s a lot of cross-shopping, and shows
how important the Dollar channel is to Walmart shoppers.
Frequent Walmart shoppers shop all stores more often, and that holds true
for Dollar Stores, too.
• 82% of Frequent Walmart shoppers shop Dollar Stores each month.
• Two-thirds of Occasional and Rare Walmart shoppers are also in Dollar
Stores every month, but fewer of them go weekly (18%-19%).
WALMART SHOPPERS: SHOPPING FREQUENCY AT DOLLAR STORES
TOTAL
Walmart
Shoppers
FREQUENT
(Once a Week
or More)
SHOPPING FREQUENCY
OCCASIONAL
(2-3 Times
a Month)
RARE
(Once a Month
or Less)
Base: Past 3 Month Dollar Store Shoppers 845 396 203 224
A B C D
% % % %
% of Total Walmart Shoppers 59 65 59 52
Shop Dollar Stores - Monthly or More 74 82 DE 68 67
- Once a week or more often 22 27 CD 18 19
- Once every 2 to 3 weeks 27 28 27 25
- Once a month 25 27 23 23
Shop Dollar Stores - Less Than Once A Month 26 18 32 B 33 B
52
HOW AMERICA SHOPS ®
Where did the Walmart Shopper Go?
© WSL STRATEGIC RETAIL 2011
- Once every 2 to 3 months 16 12 19 B 20 B
- Once every 4 to 6 months 5 4 6 6
- Less often than every 6 months 5 2 7 B 7 B

GOING MORE TO DOLLAR STORES
41% of Walmart shoppers are shopping Dollar Stores more now than a few
years ago, for a net change of +24 ppts.
• Interestingly, it is the Rare Walmart shoppers who are going more
often since the downturn. The net change for Frequent and Occasional
Walmart shoppers is +19 ppts vs. +34 ppts among Rare shoppers.
CHANGES IN SHOPPING FREQUENCY AT DOLLAR
TOTAL
Walmart
Shoppers
FREQUENT
(Once a Week
or More)
SHOPPING FREQUENCY
OCCASIONAL
(2-3 Times
a Month)
RARE
(Once a Month
or Less)
Base: Past 3 Month Dollar Store Shoppers 845 396 203 224
A B C D
% % % %
% of Total Walmart Shoppers 59 65 59 52
Go to Dollar vs. a few years ago…
- More often 41 39 41 44
- Less often 17 20 D 22 D 10
- About the same 42 41 37 46
Net Change +24 +19 +19 +34
SPENDING MORE AT DOLLAR STORES
37% of Walmart shoppers are spending more at Dollar Stores compared to
a few years ago. Half as many, 20%, are spending less, for an overall net
change of +17 ppts.
• Again, Rare Walmart shoppers show a higher positive net change in
spending at Dollar. This, along with their going to Mass Merchandisers
and Supermarkets, as well as Dollar means Walmart appears to be
losing more of this shopper.
CHANGES IN SPENDING AT DOLLAR
TOTAL
SHOPPING FREQUENCY
Walmart
Shoppers
FREQUENT
(Once a Week
or More)
OCCASIONAL
(2-3 Times
a Month)
RARE
(Once a Month
or Less)
Base: Past 3 Month Dollar Store Shoppers 845 396 203 224
A B C D
% % % %
% of Total Walmart Shoppers 59 65 59 62
Spending at Dollar stores vs. a few years ago…
- More often 37 36 35 37
- Less often 20 23 D 21 D 13
- About the same 43 41 44 50 B
Net Change +17 +13 +14 +24
HOW AMERICA SHOPS ®
Where did the Walmart Shopper Go?
© WSL STRATEGIC RETAIL 2011
53