Shop Talk

Check Out Line: Grocery shoppers making their lists, checking them twice

Check out consumers’ discipline when shopping for groceries.

Most U.S. households have already made the majority of their purchasing decisions before they even enter a grocery store, and rarely buy on impulse, said market research firm NPD Group.

According to a new NPD report, 94 percent of households prepare a written shopping list before they go shopping, and 72 percent of shoppers never, or only occasionally, buy items not on the list.

“For food and beverage manufacturers and retailers, it’s all about getting on the list,” said Ann Hanson, executive director of product development for NPD and author of the report.

“With so many purchasing decisions being made at home where meals are being planned and shopping lists assembled, it’s important to focus on the consumer at home before they leave for the store.”

NPD said most U.S. consumers eat dinner at home, and that most households plan these meals in advance.

As for purchasing items not on the list, only about one in four grocery shoppers are impulse-driven while grocery shopping, the report found. The top reasons for impulse purchases, it said, were “saw it on promotion,” “saw it in the store and remembered it was needed,” and “it looked like a good meal or snack solution”.

Window shopping on the iPad, brought to you by eBay

Shopping in front of a computer or small hand-held device got you down? EBay says it has the answer with its new iPad app, completely redesigned for ultimate browsing on Apple‘s hippest new tablet.

The app has already been downloaded “tens of thousands” of times  since the launch of the iPad on Saturday, said eBay’s vice president of mobile, Steven Yankovich. Currently, eBay is No 11 in the list of free iPad apps, he said.

The app allows shoppers to see high-resolution images of their favorite products, even in thumbnails, and an easy-to-navigate two screen system simplifies the buying process.

EBay expects to move some $1.5 billion in gross merchandise volume this year through mobile (it does not break out the percentage it makes from these transactions).

Reengineering its iPhone app for the iPad is worth it, say executives, given the potential footprint of the new device.

“I believe the 8 million to 10 million (unit) number for the year,” said Yankovich.

Although some analysts have predicted sales of as much as 10 million devices, others believe Apple will sell half that amount in 2010.

Paper? Plastic? At Walmart, the push for reuseable

Three Walmart stores in Northern California are no longer giving shoppers the option of packing their purchases in free plastic bags.

Instead, in stores in Folsom, Citrus Heights and Ukiah, Walmart is offering shoppers resuable bags — a regular sized bag for 15 cents or an oversized bag for 50 cents.

It’s part of a plan by Walmart to cut plastic shopping bag waste in its stores by one-third by 2013.

In 52 other stores in California, Walmart is now selling both of these reusable bags up front  at the register, where cashiers are encouraging shoppers to buy them when they check out (although shoppers can still opt for the free plastic bags).

When I visited the American Canyon store outside Napa Valley, plenty of shoppers were still having purchases piled into free plastic bags.  But others chose to buy reusable ones, saying they didn’t mind paying for a reusable bag if it would keep plastic ones from piling up at home.

“It’s rare you can get something for 15 cents these days,” shopper Gloria Campbell told me.

But there are skeptics, especially at the stores where Walmart no longer provides free bags. Posters on message board ask why they have to pay for something that used to be free, especially at a discount retailer known for touting its low prices.

Target pops up, but this time with a focus on price

Target is a big fan of the pop up store, setting up miniature versions of itself for a few days so shoppers can buy its wares, often in cities where it does not have a large presence.

A year ago, right before the financial storm hit Wall Street in September, it set up “Bullseye Bodegas” in Manhattan, where it showcased exclusive merchandise by 22 designers.

This year for the holidays, Target will open 3 Target To-Go stores Dec 11-13 in New York City, San Francisco and Washington, D.C.  They will offer 50 “wallet-friendly gifts” like toys, home decor, beauty and fashion. Target’s fashions from Rodarte will also be sold in the pop up stores a week before the collection hits its stores nationwide on Dec. 20.

“This holiday, we wanted to give our urban markets a little slice of Target,” said Shawn Gensch, vice president of marketing. ”Target To-Go gives time-starved city dwellers a joyful, convenient and affordable holiday shopping experience.”

With budget-conscious shoppers appearing to be the only ones who exist this holiday season (resulting in retailers seeing a weak start to the holiday shopping rush), touting “wallet-friendly” gifts over unique merchandise by 22 designers might be a better way to win sales this Christmas.

(Photo: Reuters)

Check Out Line: A Black Friday extravaganza!

Today’s a serious shopping day for serious shoppers.

Black Friday is no longer a sport for the leisurely shopper. From our late-night rounds, it became clear that people were lining up all over in the dead of night (and some earlier than that!) not just for the fun of it but out of necessity.

While many of the stoutest shoppers were grimly determined to get their deals and get out, there was some fun and holiday cheer.

At a Best Buy in Springfield, Pennsylvania at midnight, the 50 people in line created an atmosphere part football tailgate and part Department of Motor Vehicle tension. A card table was set up near the end of the line, but the reception on that end was quite frosty, possibly “enhanced” by the consumption of cheap beer.

But for the most part, the deals were the thing.

Take Nate Bryan of Drexel Hill, Pennsylvania, who arrived at 2:30 am EST this year to get a laptop for his daughter.

“It’s normally $1,000 and now cut in half. That $500 can go to other things,” he said.

Nothing to do but eat? Click on the Reuters holiday shopping cornucopia!

Attention all eaters (and shoppers)!        Today, as the scent of turkey and spice wafts through your cozy abode ahead of the big meal, you may feel frustrated that your natural instinct to hunt and gather — remember our forefathers? — is thwarted by store opening hours.       But never fear! You don’t have to wait for the stroke of midnight, when many retailers will open wide their doors. Assuage your instincts now by clicking on Reuters’ selection of holiday shopping stories, from women shoppers finally buying for themselves to food donations by Wal-Mart. Or how about a look at retailers vying for more full-price sales, or social media providing a boost to sales.      Reuters will be sending its reporters across the country to visit stores, interview shoppers and retailers throughout the long weekend, providing an advance look for investors, and shoppers, of how the crucial holiday sales season is shaping up.

(Reuters photo)

from Raw Japan:

Retailers do the limbo

For some of Japan's retailers trying to jumpstart consumer spending, setting prices is like doing the limbo: How low can they go?

Japanese retailers reported mostly dismal first-half earnings results, with the industry stuck in a slump as shoppers remain reluctant to open their wallets even as the economy emerges from recession.

With no sales pick-up in sight, stores seem to have no choice but to continue their race to undercut rivals, with prices dropping for everything from cars to clothes to milk.

On the surface it sounds like a shopper's paradise: Who wouldn't mind paying less than 1,000 yen ($11) for a pair of jeans?

But it could also lead to a deflationary spiral in which consumers put off spending in hopes of further falls in prices.

And what's more, these price cuts are slicing into already razor-thin profits at companies, which are then forced to pass on the pain to employees in the form of lower paychecks.

"It's a death march," said Junji Ueda, CEO of FamilyMart, Japan's No. 3 convenience store chain.

Check Out Line: Consumers spending again?

Check Out home-related retailers Sears Holdings and Williams-Sonoma reporting better-than-expected quarterly results. Does this mean consumers are feathering their nests again?

Somewhat, according to Barclays analyst Michael Lasser, who said Williams-Sonoma’s results were “an indication that upper-income consumers are spending a bit more, which is not surprising given the rally in the stock market and the stabilization in the housing market.”

Williams-Sonoma, which also operates Pottery Barn and West Elm, has updated its styles and slashed prices on some items to woo shoppers, despite worries that the move might tarnish its image as a high-end retailer.

But it’s not only high-end chains showing signs of life. Kmart, the value-priced retailer that sells everything from appliances to clothing, posted its first increase in same-store sales since 2005, and only its second since 2001. The chain, which is owned by Sears, took back its shoe operations this year from Footstar, which had operated within Kmart stores.

Even Sears, which depends more heavily on the housing market due to its Craftsman tools and Kenmore appliances, posted its best performance since the fourth quarter of 2007, and outperformed competing home improvement chains like Home Depot and Lowe’s.

Also in the basket:  

Average UK woman wears 515 chemicals a day

Consumers shrug in the face of lean inventory

Lean inventory may be the secret weapon that retailers are depending on to survive the holiday season with earnings intact.

But consumers don’t exactly seem to be quaking in their boots at the prospects of finding empty racks this Christmas season.

According to the ICSC, with 18 days until Black Friday and 46 shopping days until Christmas, the consumer appears “unfazed” by reports of retailers running low on inventory.

The ICSC and Goldman Sachs’ 2009 Holiday Spending Survey found that 81 percent of consumers said lean inventories are not motivating them to shop earlier than in past seasons.

One culprit behind the nonchalance?  Gift cards.

According to the survey, 48 percent of holiday shoppers said that if they can not find the gift item they are looking for, they will buy a gift card.

“It is surprising that consumers are not willing to shop early for holiday gifts to get the best selection,” said Michael Niemira, ICSC’s chief economist.  “Bargains seemingly may matter more than selection for the consumer, which is why more consumers this year than in any recent time plan to shop on the day after Thanksgiving (16%) —which now should be dubbed Bargain Friday.”

Need an inside source? Here’s eBay

EBay, the online marketplace where shoppers can find anything from toys to cars to designer handbags, has launched a digital magazine.       The magazine, www.theinsidesource.com, is geared to “inspired shoppers” and features stories based on what eBay’s millions of users are looking for, according to the publication.

It will feature articles, analysis and opinions from eBay shoppers and journalists. The site will also point to eBay’s most-watched and most-searched items.   “The Inside Source content will reflect what inspires us on eBay, from a profile of an art dealer discovering museum-quality pieces to a breakdown of the hottest trends in handbags,” said Managing Editor Meredith Barnett.      Perusal of the site revealed postings on a variety of topics, from Kim Kardashian’s style and cocktail rings for under $30 to Jane Birkin’s kitchen and items made of hemp.           The magazine is part of the company’s recent marketing efforts to reenergize its marketplaces business, which competes with a host of e-commerce rivals, including Amazon.com.

(Photo: Screenshot of www.theinsidesource.com)