Gibs shoppertunties

Shoppertunities Kerry Chipp

May 2014

Note of thanks to sponsor

“there is extensive shopper behaviour research conducted at the level of individual malls, but limited comparative data for the category. Primedia Unlimited Mall Division seeks to enable a better understanding of how consumer intent translates into shopper behaviour and retail sales”

Background

*SACS2013 Fact Sheet

*Average of audited foot counts across super regional and regional malls

With an estimated R407 billion* spent in shopping centres in 2013

Which accounts for 70% of all retail spend in 2013

And super regional and regional shopping centres attracting an average footcount of 800,000* consumers a month

Context

Understanding who these consumers are, how and what they buy and what influences their purchases is paramount

Methodology

Fieldwork conducted by AC Nielsen, overseen by Dr Clive Corder and Kerry Chipp

7 Super regional and regional malls in Gauteng, KZN and Western Cape

Surveyed 4200 n = 600 per centre

Sampled two weeks at the end Nov 2013, every day across 4 intervals each day

Mall intercept questionnaire randomly sampled across entrances, time of day and day of week

Two questionnaires one on entry and other on exit

Who did we speak to?

Profiles

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Gauteng KZN Western Cape Pretoria

27% 28%

33%

12%

Total n = 10669

Please note data weighted Un-weighted total 4200

Spread across the main centres

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

15 - 24 25 - 34 35 - 49 50+ Black White Indian Coloured Male Female Daily Weekly Monthly Less often

Age Race Gender Frequency of visit

27%

33%

26%

14%

63%

10% 12%

14%

36%

64%

15%

51%

30%

3%

Spread of ages, races and across week activity More females than males

What did we ask?

On Entry • Visit frequency; visit timing (day, week, month) • Overlap with other malls in the region • Travel time, mode and origin • Planned visits • Reason for coming to mall

On Exit (for a voucher) • Types of stores visited • Brands visited • Purchase (planned and unplanned) and spend • Reason for purchase • Mall rating on list of criteria • In mall advertising noticed • Marketing activations noticed • Shopper attitudinal statements • Loyalty cards • Cell phone questions (use, social media etc.) • Standard demographics

The mall differentiators

The roles of Super-Regional vs. Regional malls are clearly differentiated by mall goers

Super-Regionals Regionals

Centred around EXPERIENCE

Rated positively in terms of

Accessibility

Comfort

Discovery of new products

Socialising

Centred around FACILITATION

Rated positively in terms of

Purpose driven event

Directed purchase

Functional engagement

Ease of navigation is a strong

influencer

Super-regionals are more likely to be used for a wide variety of

activities by mall goers

Regionals are more likely to be frequented regularly for essential shopping and

activities

The unintentional shopper

On average, mall goers

visit 9 categories per visit

3 of 9 category visits are

unintended at the outset

Mall goers buy a variety of items when shopping, a third outside of their original intention

There are similarities between the top intended categories and top unintended categories visited

Top Intended categories visited

Top unintended categories visited

Food and household products Clothing

Department Stores Restaurants and coffee bars

Clothing Food and household products

Banking Department stores

Household groceries Household groceries

8 in 10 mall goers purchase during their visit

4 in 10 purchases are unintended at the outset

Malls attract buyers, who buy things they didn’t even know they needed

This equates to R 13.5 billion a month being generated by

unintended purchases

36% of spend was attributed to the presence of in-mall advertising and

marketing activations

Marketing in the last mile contributes to the bottom line

In a mall with an average of 800,000 monthly visitors, 288,000

purport to be influenced by the presence of in-mall advertising and

marketing activations R 12.2 billion spend a month

being generated by response to in-mall advertising and

activations

Shopper behaviours

The research identified 5 distinct shopper behaviours

Goal Directed Taking a Break

Leisure Shopper General Shop Business Purpose

Goal Directed

• Less frequent visitors

• Spend on average 1h27 a visit

• Value mall navigation tools

• Notice in-mall advertising and

marketing activations

• Although focused on what they

have come to buy, they do make

unintended purchases

This group generates around R 48.3m in spend in an average mall a month

Top 5 intended categories Top 5 unintended categories

Food and Household Clothing

Clothing Cellphone / electronics

Department store Department

Accessory / Luggage Restaurant / Coffee bar

Cellphone / electronics Food and household

Taking a Break

• Spend on average 1h27 a visit

• Get involved with the

demonstrations and engage in

marketing events

• Go primarily for food and

household goods, but often end up

buying other categories.

• Higher propensity to make

unplanned purchases

This group generates around R41.6 m in spend in an average mall a month


Food and household Clothing

Clothing Restaurants / coffee bars

Department Stores Household groceries

Household groceries Food and household

Banking Department stores

Leisure Shopper

• Spend on average 1h42 per visit

• Prime purpose is socialising and

entertainment

• Tend to travel distance to the mall for

the occasion

• Open to in-mall advertising and

demonstrations – like new

experiences

• Active on social media and utilise it

extensively

This group generates around

R 18.3m in spend in an average mall a

month


Clothing Clothing

Food and household Restaurants / coffee bars

Entertainment Food and household

Department stores Department store

Accessories / luggage Accessories / luggage

General Shop

• Less frequent visitors but travel

from far

• Spend on average 1h31 per visit

• Higher propensity for visit intention

to be vague at the outset

• Aware and interested in in-mall

advertising and marketing

activations

This group generates around R 9.7m in revenue in an average mall a month



Clothing Restaurant / coffee bar

Department store Food and household

Banking Department store

Household groceries Household groceries

The Business Purpose

• High frequency visits from local

catchment

• High propensity to engage in

unplanned purchases

• Significantly open to marketing

activities and in-mall advertising

• Engaged actively in online and

social media

This group generates around R 3.9m in sales in an average

mall a month



Clothing Food and household

Department stores Department stores

Banking Household groceries

Household groceries Restaurants / coffee bar

Actions and Attitudes

𝑠𝑡𝑜𝑟𝑒 𝑣𝑎𝑟𝑖𝑒𝑡𝑦 +𝑒𝑥𝑡𝑒𝑛𝑑𝑒𝑑 𝑏𝑟𝑜𝑤𝑠𝑖𝑛𝑔

𝑡𝑖𝑚𝑒 𝑎𝑣𝑎𝑖𝑙𝑎𝑏𝑙𝑒= log𝑠𝑝𝑒𝑛𝑑

R 0

R 100 000

R 200 000

R 300 000

R 400 000

R 500 000

R 600 000

R 700 000

R 800 000

R 113 046

R 360 123

R 789 384

R 358 041

R 30 883

R 107 891

R 72 015

R 11 424 R 32 678

R 160 418

R 40 343 R 24 311

R 114 908

R 31 083

R 115 495

R 81 171

R 35 803

Purpose of visit

Shoppers come to shop, but shoppers with time on their hands are a lucrative market

Shoppers tend to say and do very different things

They say advertising gets them there

They say they are cautious, but also that they are willing to use credit

They say they like to buy items on special

They say advertising and special promotions influence them

Few were brought in on the strength of an offer advertised outside the mall

High propensity to visit stores not intended and purchase items not planned for

They respond well to specials which shows they are deal prone

High propensity to only remember things they need once in the mall, which suggests that triggers in the local environment are effective

The importance of the last mile Take away this block that says “name surname”

Im a little unclear as to what this slide refers to – maybe the heading needs to change to implications for marketing to the consumer in the last mile?

In-mall advertising and marketing activations have a significant impact on consumer purchases

Advertising and mall activations accumulate

Mall activations create unplanned browsing (statistically significant correlation r = .256) Engaging in product demonstrations Receive store marketing messages Attend marketing events during visit Enter a promotion

In-mall advertising and marketing activations have a significant impact on consumer purchases

Advertising and mall activations accumulate and explains 36% spend in malls

Mall activations factors into spend (statistically significant correlation β = .223)

Mall advertising factors into spend (statistically significant correlation β = .248)

When combined in concerted campaigns – an amalgam creates the impact – so rather own a mall than spread efforts thinly across malls

R 12.2 billion spend a month being generated by response to

in-mall advertising and activations

In-mall advertising is recalled by those with unplanned visits and purchases to be influential

Top 3 recalled in-mall advertising platforms

1. Escalator branding 2. Hanging banners 3. Lift door branding

The role of digital is significant in malls where the capabilities are higher

In malls with digital

capabilities, digital

directories and

video walls were

within the top 5 recalled advertising

channels

While smartphone penetration is high, the usage of devices for wifi in the malls isn’t significantly high

62%

Smart Feature Basic

26% 12%

71% currently don’t have wifi enabled on

their wifi enabled phones when coming to the malls

Online shopping penetration is low currently but with access and mobility increasing

8% of mall goers currently

report to use

online shopping

Key Take Outs

With consumers being deal prone and value conscious, in mall promotions work well to drive behaviour

With a high propensity to engage in the mall environment for relaxation and socialising, mall demonstrations are attractive

In-mall marketing activities play a far larger role in unplanned purchases than advertising

In-mall marketing activities correlates to unplanned visits of mall retailers

There is a direct correlation between amount of time spent in the mall and the presence of in-mall advertising to drive unplanned purchases

Implications for stakeholders

Mall Owners • Aware of mall position and role it serves in lives of shoppers

• Store and occasion mix important

• Positioning of smaller occasion shops near big retail increases foot-traffic for large retail

• Clothing and department stores should remain as the anchor tenants

• Gauteng large malls are more of a social outing than coastal and smaller malls, so can capitalise on many shopping occasions

• Encourage browsing opportunities where ever possible as they are a key part of increased spend

Brand Owners • Advertising needs to be coordinated between large scale above the line brand

building and below the line sealing of the deal

• Differentiate between volume drivers below the line and brand symbolism above

• Opportunity to energise brand through experiential occasions when shoppers are at leisure

Retailers • Be cognisant of positioning of refreshment occasions within large retail

• Business meetings and other activity generates a great deal of opportunistic spend for the mall

• Browsing is the second biggest event associated with spend – underscoring the need for footfall

• Build on segments of shoppers and their needs

Thank you! Kerry Chipp

[email protected]

mailto:[email protected]