Retailers who understand the primary and secondary shopping modes of their core customers can successfully differentiate themselves from their competition, according to the American ShopperScape 2005 report by Retail Forward Inc. (Columbus, Ohio), a management consulting and market research firm specializing in retail intelligence and strategies.

• Low-cost replenishment. This is the primary shopping mode for consumers who habitually buy goods that require limited decision-making. Wal-Mart, the king of this mode, will continue to gain share from competitive channels and other players such as supermarkets. “While Wal-Mart leads in low-cost replenishment shopping in grocery and basics, the company must address shoppers in different modes in its other departments to evolve to the next level of growth in those departments,” said Mandy Putnam, vice president of Retail Forward and author of the report.
• Thrill of the hunt. The second-most popular, this is the primary shopping mode of consumers in small-format value retailers, off-price stores and factory outlets. It also is closely associated with discount store warehouse club shopping. However, today’s shoppers demand more than thrills to motivate them to shop often enough to sustain retailers’ growth. In general, retailers capable of serving this mode of shoppers are not reaping as much benefit as retailers that serve multiple modes.
• Speed and convenience. The convenience store channel serves this shopping mode well. Convenience stores offer fill-in and grab-and-go shopping primarily for consumers stopping to fill their gas tanks. Players in other channels such as supermarkets, supercenters and drug stores—the other key fill-in grocery providers—are implementing technology and merchandising tactics to appeal to shoppers in this mode.
• Sense of discovery. This is the primary shopping mode for book and media retailers, craft and hobby stores, gadget/gift/theme retailers and toy stores. According to the report, however, it serves as a primary mode for consumer electronics stores and sporting goods retailers as well.
• Solve a problem. Two-thirds of shoppers associate the home improvement channel with this shopping mode. Other channels closely linked to this mode include auto supply stores, consumer electronics stores and sporting goods stores.
• Self-expression mode. This shopping mode is closely associated with ego-intensive goods sold in multiple channels, including apparel specialty stores and shoe stores. The survey reveals that continuous sale pricing driven by stiff competition leads consumers to rationalize purchasing through sales, which erodes many retailers’ ability to fully leverage this mode.

“Knowing what shopping modes consumers are most likely in when visiting certain types of stores can help retailers and their suppliers efficiently meet the needs of shoppers along the customer journey,” Putnam said. “And understanding shoppers’ most likely secondary shopping modes will keep their customers coming back for more.” [January 2006 PET AGE]