Blueocean Market Intelligence, a full-service market research and
analysis firm, announced today the results of the second wave of a study
examining how changes in consumer spending habits are impacting sales at
the world's largest retailer.
Despite positive trends in its peer group, Walmart sales in the United States are declining. According to its latest earnings report, same-store U.S. sales declined 1.1 percent in the first quarter of 2011. This is the eighth straight quarter U.S. sales have declined.
The first wave of the study, "Walmart Customers Rolling Back," found customer loss, price competition and Project Impact reorganizing
efforts negatively affected 2010 sales compared to 2009. The second wave
was conducted to discover whether changes Walmart implemented beginning
in the third quarter of 2010 and slow economic recovery have impacted
consumers' shopping habits.
Blueocean surveyed 1,500 Walmart shoppers in April. Customers reported whether their shopping behavior has or will change from the fourth quarter in 2010 vs. the first quarter in 2011, and the next six months vs. current. Survey participants, ages 18 to 75, were a representative sample of the U.S. population.
Key findings from the second wave of the Walmart Customer Tracking Study, "More Rollbacks: Walmart Customers Respond to Continued Economic Malaise", include:
Concern about the health of the economy and high gas prices continued to impact consumers' willingness to shop and spend. One in three shoppers say they're spending less at Walmart because of high gas prices. Three in four say they're reducing spending overall.
Although shoppers continued to cut spending, Walmart experienced some net gains, suggesting it captured a greater portion of consumers' wallets, especially in the Pet, Health & Beauty, and Baby departments. However, price competition resulted in lower Walmart Grocery gains compared to other channels.
Walmart continues to slip in price and convenience metrics as consumers shop closer to home due to high gas prices. This trend creates increased opportunities for online, dollar and limited assortment retailers.
High engagement shoppers - Walmart's most valuable customers -
are making the most significant cuts to Walmart trip frequency.
While some trip and spending declines can be attributed to reduced spending post-holidays, shoppers don't predict spending will increase within the next six months.
Fewer respondents think the economy is getting worse compared to
the first study, but they aren't hopeful either. Nearly half believe the economy got worse in Q1 2011.
Nearly four in 10 shoppers say competitors offer the same or better pricing.
Consumers are not seeing results from efforts to reverse Project Impact, a reorganizing effort designed to attract higher income shoppers and reduce clutter. Attitudes about Walmart's variety, cleanliness and customer service have not improved.
Although Walmart recently reported more affluent shoppers were returning to stores, results don't confirm the increase.
About Blueocean Market Intelligence:
Blueocean Market Intelligence is a next-generation market research
firm, specializing in custom and secondary research, social media analysis, and advanced modeling and analytics, all designed to capture the full customer voice and deliver more complete, richer insights.
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