Table of Contents
Executive Summary
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- Market overview
- Top takeaways
- Key takeaway video
- The insights
- Nearly all Black consumers have shopped at Walmart
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- Figure 1: Preferred mass merchandiser retailers, October 2019
- Most Black consumers shop in-store, but shopping online, particularly at Walmart, is growing
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- Figure 2: Black consumer mass merchandiser online purchases, any and by select retailers, 2015-19
- Mass merchandisers are convenient, but price is the most important shopping factor
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- Figure 3: Attitudes toward mass merchandisers, October 2019
- Black consumers’ perceptions of mass retailers demonstrate what they value
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- Figure 4: Perceptions of mass merchandisers – Correspondence Analysis, October 2019
- The opportunities
- Brick and mortar retailers should expand their online product offerings
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- Figure 5: Perceptions of mass merchandisers, October 2019
- The current mass shopping experience is good; a faster one would make it great
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- Figure 6: Desired store improvements – checkout innovation, October 2019
- What it means
The Market – What You Need to Know
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- Black unemployment is at a record low, but workers are settling for any type of labor
- Black shoppers purchase while shopping at Walmart, but do more browsing at Target
The Black Population by the Numbers
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- Black population expected to grow 10% from 2014-24
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- Figure 7: US population, by Black vs Non-Black, 2014-24
- Black households represent 13% of all US households
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- Figure 8: US households, by race/Hispanic origin, 2019
- Black adults in the labor force are finding work, but job quality is a concern
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- Figure 9: Unemployment and underemployment* rates, by total and Black workers, 2000-19
- Nearly one third of Black households are low income
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- Figure 10: Household income, by race and Hispanic origin, 2018
Market Perspective
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- Walmart shoppers nearly always make a purchase during store visits
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- Figure 11: Mass merchandising shopping and purchase by retailer, by total and Black, April 2018-June 2019
- Black shoppers visit Walmart at least once a week
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- Figure 12: Average number of store visits in the past four weeks, by total and Black, April 2018-June 2019
- Multiple departments are a greater draw for Black shoppers
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- Figure 13: Purchases at mass merchandisers within the last 3 months, by department, total indexed to Black, April 2018-June 2019
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- Figure 14: Apparel and footwear purchases at mass merchandisers within the last 3 months, by total and Black, April 2018-June 2019
Key Trends – What You Need to Know
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- Walmart and Target engage Black consumers with different targeting strategies
- Black consumers are migrating to Walmart.com from in-store and Amazon
- Black consumers still shop at Kmart even though it’s on life support
- Small-format stores target urban areas, but don’t deliver on primary attributes important to Black consumers
Trend Drivers
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- Trend Driver – Identity
- Walmart leverages Black consumers’ sense of identity into marketing efforts
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- Figure 15: Estimated Black-targeted television media spending share among discount general retailers, 2019
- Figure 16: Walmart Black History Month online video featuring Marley Dias, February 2019
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- Figure 17: Walmart spring online ad, March 2019
- Target creates partnerships with Black-owned businesses to deepen engagement
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- Figure 18: Essence + New Voices Entrepreneur Summit and Target Holiday Market event pictures, December 2019
- Figure 19: Target Black History Month shopping section, January 2020
What’s Working?
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- Walmart’s online shopping shows signs of growth
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- Figure 20: Black consumer mass merchandiser purchases, any and online by select retailers, trended 2015-19
What’s Struggling?
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- Kmart’s slow demise reduces shopping options
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- Figure 21: Kmart store count and sales revenue, 2000-17
What to Watch
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- Smaller mass merchandiser formats facilitate changing shopper habits
The Consumer – What You Need to Know
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- Nearly nine in 10 Black consumers have shopped at Walmart within the past year
- Amazon is the shopping site for affluent Black consumers
- Mass stores are primarily known for fulfilling shopping needs, followed by offering competitive prices
- Black consumer mass store perceptions highlight what they value and expect from retailers
- Black consumers want a fast check out at mass merchandisers
Preferred Mass Merchandiser Retailers
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- Walmart is the preferred mass retailer, Amazon close behind
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- Figure 22: Preferred mass merchandiser retailers, October 2019
- Walmart is the standard for nearly all Black shoppers
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- Figure 23: Demographic profile of Black Walmart shoppers, October 2019
- Busy, middle-aged shoppers prefer Amazon
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- Figure 24: Demographic profile of Black Amazon shoppers, October 2019
- Target appeals to affluent shoppers, but to lesser extent than Amazon
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- Figure 25: Demographic profile of Black Target shoppers, October 2019
- A healthy financial situation offers greater choice in shopping locations
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- Figure 26: Household financial situation, by preferred mass merchandising retailers, October 2019
- Nearly half of Black consumers have shopped on Walmart.com
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- Figure 27: Preferred mass merchandiser retailers, in-store or online, October 2019
- Black Midwesterners’ access to Meijer impacts their shopping choices
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- Figure 28: Preferred mass merchandising retailers, by region, October 2019
Attitudes toward Mass Merchandisers
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- Mass merchandisers’ primary value is their product mix
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- Figure 29: Attitudes toward mass merchandisers, October 2019
- Target’s product mix across more departments makes shopping easier
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- Figure 30: Preferred mass merchandising retailers, by attitudes toward mass merchandisers, October 2019
- Traditional female shoppers see greatest value in mass stores’ offerings
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- Figure 31: Attitudes toward mass merchandisers, by female age groups, October 2019
- Young men with few shopping responsibilities focus on price
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- Figure 32: Attitudes toward mass merchandisers, by male age groups, October 2019
- Parents with young children value product mix; those with teens value brand mix
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- Figure 33: Attitudes toward mass merchandisers, by kids’ age groups, October 2019
Perceptions of Mass Merchandisers
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- Store narratives belie actual consumer perception
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- Figure 34: Perceptions of mass merchandisers – Correspondence Analysis – symmetrical map, October 2019
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- Figure 35: Preferred mass merchandisers by perceptions of mass merchandisers, October 2019
- Good value surpasses cheap prices as women age
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- Figure 36: Perceptions of mass merchandisers by select retailers, by female age groups, October 2019
- Young men’s low engagement with mass shopping reflected in their store perceptions
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- Figure 37: Perceptions of mass merchandisers by select retailers, by male age groups, October 2019
- Parents, particularly those with young children, believe Walmart offers the best value and product mix
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- Figure 38: Perceptions of mass merchandisers by select retailers, by kids’ age groups, October 2019
Desired Store Improvements
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- Black shoppers are mostly satisfied with mass stores, but a faster experience is welcomed
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- Figure 39: Desired store improvements, December 2019
- Faster, more store checkout options can increase store visits
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- Figure 40: Desired innovations – TURF analysis, October 2019
- Young shoppers gravitate toward lifestyle partnerships and online innovations
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- Figure 41: Desired store improvements, by age group, October 2019
- Affluent households want to save money wherever possible
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- Figure 42: Desired store improvements, by household income, October 2019
- Parents of school-aged children look for convenience and savings
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- Figure 43: Desired store improvements, by kids’ age groups, October 2019
Appendix – Data Sources and Abbreviations
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- Data sources
- Consumer survey data
- Abbreviations and terms
- Abbreviations
- Terms
Appendix – The Consumer
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- TURF analysis methodology
- Correspondence analysis methodology
- Simmons datasets
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- Figure 44: Mass merchandising shopping and purchase by retailer, by total and Black, April 2018-June 2019
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- Figure 45: Average number of store visits in the past 4 weeks, by total and Black, April 2018-June 2019
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- Figure 46: Purchases at mass merchandisers within the last 3 months, by department, total indexed to Black, April 2018-June 2019
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- Figure 47: Apparel and footwear purchases at mass merchandisers within the last 3 months, by total and Black, April 2018-June 2019
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- Figure 48: Black consumer mass merchandiser purchases, any and online by select retailers, 2015-19
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