US Mass Merchandisers Market Report 2022

Overview

• What you need to know
• This Report looks at the following areas
• Definition
• Market context

Executive Summary

• Top takeaways
• Market overview
  • Figure 1: Total US sales and fan chart forecast of mass merchandisers, at current prices, 2017-27
  • Figure 2: Outlook for mass merchandisers, 2022-27
• Opportunities and challenges
• Economic pressures shift the focus to value and savings
• In-store shopping makes a comeback, but multichannel is the future
• Grocery and essentials are winning in mass
• Reasons for Shopping Mass Merchandisers Key consumer insights

Market Size and Forecast

• Continued sales growth in spite of headwinds
  • Figure 3: Total US sales and fan chart forecast of mass merchandisers, at current prices, 2017-27
  • Figure 4: Total US sales and forecast of mass merchandisers, at current prices, 2016-26

Segment Performance

• Supercenters and warehouse clubs dominate market share
  • Figure 5: Total US retail sales and forecast of mass merchandisers, by segment, at current prices, 2017-27
  • Figure 6: Total US revenues of mass merchandisers, by segment, at current prices, 2020 and 2022

Market Factors

• Economic pressures drive consumers toward low prices
  • Figure 7: Consumer Price Index change from previous period, 2007-22
• Retailers grapple with inventory pileups
• Conscious consumerism is on the rise
• Tech advancements solidify an omnichannel future

Competitive Strategies and Market Opportunities

• Target bets on brick-and-mortar
  • Figure 8: Target expands its in-store strategy
• Walmart lays the groundwork for an omnichannel future
  • Figure 9: Walmart invests in omnichannel
• Meijer makes sustainability a priority
  • Figure 10: Meijer invests in sustainability and community

The Mass Merchandiser Consumer – Fast Facts

Retailers Shopped and Shopping Method

• Walmart and Target continue to dominate
  • Figure 11: Retailers shopped – Mass merchandisers, by shopping method, 2022
• Despite ecommerce growth, in-store is the preferred channel for mass
  • Figure 12: Retailers shopped online – Mass merchandisers, 2015-22
• • Figure 13: Walmart makes enhancements to Walmart.com
• How do mass merchandisers hold up against other major retailers?
• Club stores outpace Meijer and Kmart
  • Figure 14: Retailers Shopped, mass merchandisers versus warehouse/club, by shopping method, 2022
• Amazon continues to own ecommerce
  • Figure 15: Retailers shopped online, 2022
• • Figure 16: Amazon introduces its “Amazon Style” store
• Parents are a key demographic for mass merchandisers across channels
  • Figure 17: Mass merchandisers shopped online, by parental status and gender, 2022

Items Purchased at Mass Merchandisers

• Consumers look to mass merchants for essential purchases
  • Figure 18: Items purchased at mass merchandisers – Any purchase, 2022
• Food and beverage are winning in the mass channel
  • Figure 19: Items purchased at mass merchandisers – Any food/beverage – NET, by age and household income, 2022
• Mass merchandisers are becoming beauty destinations
  • Figure 20: Items purchased at mass merchandisers, beauty – Females, by race and Hispanic origin, 2022
• • Figure 21: Target expands beauty partnerships
• Young and middle-aged consumers are driving discretionary categories
  • Figure 22: Select items purchased at mass merchandisers, by gender and age, 2022

Private Label Purchase Habits

• Consumers are trading into store brands
  • Figure 23: Items purchased at mass merchandisers – Store brands, 2022
• Millennials drive store brand purchases across categories
  • Figure 24: Items purchased at mass merchandisers – Store brands, by generation, 2022
• Quality store brands are a key differentiator
  • Figure 25: Reasons for shopping mass merchandisers – Store brands, by household income 2022
• • Figure 26: Walmart “dupes” on TikTok
• Asian Americans want higher quality store brands
  • Figure 27: Desire for higher quality store brands, by race and Hispanic origin, 2022

Reasons for Shopping Mass Merchandisers

• Affordable prices and wide assortment drive consumers toward mass merchandisers
  • Figure 28: Reasons for shopping mass merchandisers, by generation, 2022
• • Figure 29: Walmart collaborates with United Health Group to provide value-based healthcare services to seniors
• Parents seek flexible and convenient one-stop shopping
  • Figure 30: Select reasons for shopping mass merchandisers, by gender and parental status, 2022
• • Figure 31: Target adds Starbucks to its “Drive Up” service
• Urban shoppers crave a high-quality shopping experience
  • Figure 32: Select reasons for shopping mass merchandisers, by location, 2022
  • Figure 33: Target opens new small-format store in Times Square

Shopping Occasions

• Consumers look to mass merchandisers as grocers and essential retailers
  • Figure 34: Shopping occasions, 2022
• • Figure 35: Meijer launches new small-format “Meijer Grocery” concept
• Parents shop for more occasions
  • Figure 36: Select shopping occasions, by gender and parental status, 2022
• • Figure 37: “Walmart Land” on Roblox
• Consumers treat themselves for fun
  • Figure 38: Shopping occasions – Just for fun, by key consumer groups, 2022

Perceptions of Mass Merchandisers

• Mass merchandisers lead on value, but trail Amazon
  • Figure 39: Perceptions of mass merchandisers versus Amazon.com, 2022
• Target has mastered the budget-to-quality ratio
  • Figure 40: Perceptions of mass merchandisers, value concepts, 2022
• Still a long way to go on corporate social responsibility
  • Figure 41: Perceptions of mass merchandisers, corporate social responsibility, 2022
• Black consumers put their trust in Walmart
  • Figure 42: Perceptions of Walmart, by race, 2022
• • Figure 43: Walmart’s “Black and Unlimited” campaign

Attitudes toward Mass Merchandisers

• Consumers crave convenient, enjoyable shopping experiences
  • Figure 44: Attitudes toward mass merchandisers- shopping experience, by gender and age, 2022
• • Figure 45: Walmart + Netflix “Stranger Things” experience
• Consumers are increasingly guided by their values
  • Figure 46: Attitudes toward mass merchandisers – Conscious consumerism, by generation, 2022
• Budget-conscious behaviors extend across income brackets
  • Figure 47: Attitudes toward mass merchandisers – Budget/value, by age and household income, 2022
• Social commerce continues to build momentum
  • Figure 48: Attitudes toward mass merchandisers – Social media, by key demographics, 2022
• Consumers need to see the benefit of paid membership programs
  • Figure 49: Attitudes toward mass merchandisers – Paid memberships, by generation, 2022

Desired Improvements

• Value concepts top the wishlist
  • Figure 50: Desired improvements, 2022
• • Figure 51: TURF analysis – Desired improvements, 2022
• Younger consumers want more out of their shopping experience
  • Figure 52: Desired improvements, shopping experience, by generation, 2022
• Multicultural consumers find more room for improvement
  • Figure 53: Select Desired improvements, by race and Hispanic origin, 2022

Appendix – Data Sources and Abbreviations

• Data sources
• Sales data
• Forecast
• Consumer survey data
• Abbreviations and terms
• Abbreviations

Appendix – The Market

• • Figure 54: Total US revenues and forecast of mass merchandisers, at inflation-adjusted prices, 2017-27
  • Figure 55: Total US revenues and forecast of supercenters and warehouse club stores, at inflation-adjusted prices, 2017-27
  • Figure 56: Total US revenues and forecast of discount department stores, at inflation-adjusted prices, 2017-27

Appendix – The Consumer

• • Figure 57: Mass Merchandisers shopped – Any purchase (NET), by household income, 2022
• • Figure 58: Mass merchandisers shopped – Any purchase (NET), by parental status and gender, 2022