Shoppers Flock to Discount Stores, Leaving Department Stores in the Dust

As consumers increasingly favor discount chains over traditional department stores, Frequency Marketing Inc. predicts this trend will continue. According to the marketing firm's Retail Satisfaction Index, department stores have seen a significant decline in market share, slipping from 32.4 percent of all shopping trips in the fall of 1992 to 30.5 percent by this spring. In contrast, discount stores have risen from 53.9 percent to 55.1 percent of all shopping trips during the same period.

Key Takeaways:

• Department stores have experienced a 2 percent loss in market share over the past two years, amounting to over $4.5 billion in sales.
• Despite this loss, discount stores have seen an increase in market share, rising from 53.9 percent to 55.1 percent of all shopping trips.
• Frequency Marketing notes that even upscale shoppers are turning to discount stores for certain items, citing the example of Donald Trump shopping at a Wal-Mart store for back-to-school items for his son.
• The lack of sales staff on department store floors is a significant factor in shoppers opting for discount stores, as recent research by Mastercard and the National Retail Federation showed 60 percent of surveyed shoppers had walked out of department stores due to the unavailability of sales clerks.
• Jamie Boyer, director of customer relationship research for Frequency Marketing, attributes the shift to the growing acceptability of discount stores as a viable alternative to department stores, with shoppers seeking value and convenience.

Statistics:

• Department stores' market share declined from 32.4 percent to 30.5 percent of all shopping trips over the past two years.
• Discount stores' market share increased from 53.9 percent to 55.1 percent of all shopping trips over the same period.
• The 2 percent loss in department store market share amounts to over $4.5 billion in sales.
• 60 percent of surveyed shoppers had walked out of department stores due to the unavailability of sales clerks, according to research by Mastercard and the National Retail Federation.

Sources:

• Frequency Marketing Inc. - No specific date mentioned in the original text.
• United Press International - No specific date mentioned in the original text.
• Mastercard - No specific date mentioned in the original text.
• National Retail Federation - No specific date mentioned in the original text.