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US Mass Merchandisers Need to Focus on Building Consumer Loyalty to Mitigate Pressures from Outside Channels, Observes a New Report

Retailers should leverage their private label brands and continue to offer convenient and flexible shopping options both online and off-line to stay relevant and foster more loyalty among shoppers.


Albany, NY -- (SBWIRE) -- 01/03/2018 -- Mass merchandisers continue to enjoy popularity among consumers in the US, but loyalty and repeat sales remain low, according to a new research report added to the repository of Market Research Hub (MRH). The report titled "Mass Merchandisers - US - December 2017" offers credible information and insights on the key factors that are impacting consumer behavior towards mass merchandisers in the US.

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According to the report, consumers buying from mass merchandisers are extremely price-sensitive, and this has led to low level of loyalty and brand recall. As competition continues to increase, mass merchandisers are in a dire situation to increase their offerings and focus on their private label brands. The utilization of technology to connect with their target audience and address challenges related to perception is an opportunity that mass merchandisers must leverage to stay relevant in today's quickly evolving marketplace.

The report also offers the key influencing factors that determine consumer spending. According to the report, supercenters and warehouse clubs continue to be one of the main sources of growth, however, the pressures from outside channels continue to impede growth. Although supercenters and warehouse clubs are likely to boost growth, it is important for mass merchandisers to innovate so that they can cope up with the evolutions in consumer behavior.

Average household income continues to play a leading role in the mass merchandising shopping trends. As most shopping decisions in mass merchandising are related to cost, the average disposable income will continue to have an impact on this segment. The leading players in the market including Target and Walmart are focusing on simplifying and amplifying the shopping experience in a bid to build consumer rapport. However, the underlying perception that buying from mass merchandisers equates to compromising on quality is hampering the growth of the market. Mass merchandisers can do themselves a lot of good if they are able to address the negative perceptions related to their brands.

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According to the report, some of the key products sold through mass merchandisers includes grocery, shopping, and beauty. While shopping for these products, price continues to be an important influencing decision for consumers. In addition to the price, mass merchandisers can also focus on developing other aspects related to in-store and customer services, to appeal to a broader demographic. Loyalty rewards and quicker checkout can also mitigate some of the negative perceptions associated with mass merchandisers. Overall, the future of mass merchandisers in the US is likely to be influenced by changes in consumer behavior.

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