- Contents
- *Scope and Themes
- What you need to know
- Definition
- Data sources
- Sales data
- Consumer survey data
- Direct marketing creative
- Abbreviations and terms
- Abbreviations
- Terms
What you need to know
Total US retail sales at mass merchandisers reached $607.2 billion in 2014, or an increase of 2.3% from 2013. Sales are expected to grow steadily through 2019 to $716.1 billion, or 18% higher versus 2014. This growth is being influenced by the growing US population, namely Hispanics and Blacks, who are important to the market. Consumers’ continued emphasis on convenience and obtaining low prices in spite of signs of economic recovery will keep them coming to mass merchandisers.
Definition
This report focuses on mass merchandisers, offers sales trends, profiles of major players in the US market, as well as a detailed exploration of consumers’ attitudes, usage, and shopping behaviors in this category.
For the purposes of this report, Mintel has defined a mass merchandiser as a large retail store offering a wide range of product categories, often at discounted prices, including but not limited to appliances, clothing and accessories, shoes, furniture, office equipment, household products, health, beauty and personal care products, electronics, music and entertainment, sporting goods, and food. These stores have central customer checkout areas, generally in the front of the store, and may have additional cash registers located in one or more individual departments.
This report will focus on key national players in the market including Walmart, Target, Kmart, and will also address other regional players such as Meijer and Fred Meyer.
This report builds on the analysis presented in Mintel’s Mass Merchandisers—US, July 2008.
Value figures throughout this report are at retail selling prices (rsp) excluding sales tax unless otherwise stated.
Sales data
The total retail sales data found in the Market Size and Forecast section is based on total revenues of general merchandise stores (excluding traditional department stores) based on US Census Bureau, Annual and Monthly Retail Trade Surveys; forecast developed by Mintel.
The market size in this report covers three retailer categories within NAICS retailer category 452, General Merchandise Stores. These are defined as establishments that retail new general merchandise and have equipment and staff capable of retailing a large variety of goods from a single location. Three specific sub-sectors are used to estimate the overall market:
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NAICS 452112 - Discount department stores; establishments that have central customer checkout areas at the front of the store, but may have additional checkout registers in individual departments. These stores sell a wide range of general merchandise, excluding fresh, perishable foods.
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NAICS 452910 - Warehouse clubs and supercenters; establishments primarily engaged in retailing a wide variety of general merchandise such as household goods, apparel, furniture, and appliances, in combination with a general line of perishable groceries, such as fresh meat, vegetable, and dairy products.
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NAICS 452990 - All other general merchandise stores; establishments retailing a general line of new merchandise such as apparel, automotive parts, dry goods, hardware, groceries, housewares or home furnishings, and other lines, in limited amounts, with none of the lines predominating. Included in this category are dollar stores, general stores, and limited-price variety stores.
Consumer survey data
For the purposes of this report, Mintel commissioned exclusive consumer research through GMI to explore the attitudes and shopping behaviors of mass merchandiser shoppers. Mintel was responsible for the survey design, data analysis, and reporting. Fieldwork was conducted Dec. 11-24, 2014, among a sample of 2,000 adults aged 18+ with access to the internet.
Mintel selects survey respondents so that they are proportionally balanced to the entire US adult population based on the key demographics of gender, age, household income, and region. Mintel also slightly oversamples, relative to the population, respondents that are Hispanic or Black to ensure an adequate representation of these groups in the survey results. Please note that Mintel surveys are conducted online and in English only. Hispanics who are not online and/or do not speak English are not included in the survey results.
Mintel has also analyzed data from Experian Marketing Services, using the Simmons National Hispanic Consumer Study (NHCS). The Experian Marketing Services, Simmons NHCS was carried out during August 2013-September 2014 and the results are based on the sample of 26,053 adults aged 18+, with results weighted to represent the US adult population.
While race and Hispanic origin are separate demographic characteristics, Mintel often compares them to each other. Please note that the responses for race (White, Black, Asian, Native American, or other race) will overlap those that also are Hispanic, because Hispanics can be of any race.
Direct marketing creative
All estimated mail volume data and consumer direct mail marketing creatives are provided by Mintel Comperemedia.
Mintel Comperemedia is a searchable competitive database tracking direct mail, print, and online advertising in the US and Canada, as well as email in the US. Comperemedia tracks information across eight sectors: Banking, Credit Card, Investments, Insurance, Mortgage and Loan, Telecom, Travel and Leisure, Retail and Automotive.
For more information, please contact Account Services Management at 1.312.450.6353 or www.mintel.com.
Abbreviations
The following is a list of abbreviations used in this report:
| EDLP | Everyday low price |
| FY | Fiscal Year |
| HHI | Household Income |
| NAICS | North American Industry Classification System |
| NHCS | National Hispanic Consumer Study (Experian Marketing Services) |
| NRF | National Retail Federation |
| SYW | Shop Your Way (Kmart’s rewards program) |
| YOY | Year-over-year |
Terms
Generations are discussed within this report, and they are defined as:
| World War II /Swing generation | Members of the WWII generation were born in 1932 or before and are aged 83 or older in 2015. Members of the Swing Generation were born between 1933 and 1945 and are aged 70-82 in 2015. |
| Baby Boomers | The generation born between 1946 and 1964. In 2015, Baby Boomers are between the ages of 51 and 69. |
| Generation X | The generation born between 1965 and 1976. In 2015, Gen Xers are between the ages of 39 and 50. |
| Millennials* | The generation born between 1977 and 1994. In 2015, Millennials are between the ages of 21 and 38. |
| iGeneration | The generation born between 1995 and 2007. In 2015, iGens are between the ages of 8 and 20. |
| Emerging generation | The newest generation began in 2008 as the annual number of births declined sharply with the recession. In 2015 members of this as-yet unnamed generation are younger than age 8. |
* also known as Generation Y or Echo Boomers.
In order to provide an inflation-adjusted price value for markets, Mintel uses the CPI to deflate current prices. The CPI is defined as follows:
| CPI | The Consumer Price Index is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.
The CPI and its components are typically used to adjust other economic series for price changes and to translate these series into inflation-free dollars. Examples of series adjusted by the CPI include retail sales, hourly and weekly earnings, and components of the national income and product accounts. In addition, and in Mintel reports, the CPI is used as a deflator of the value of the consumer’s dollar to find its purchasing power. The purchasing power of the consumer's dollar measures the change in the value to the consumer of goods and services that a dollar will buy at different dates. The CPI is generally the best measure for adjusting payments to consumers when the intent is to allow consumers to purchase, at today’s prices, a market basket of goods and services equivalent to one that they could purchase in an earlier period. It is also the best measure to use to translate retail sales into real or inflation-free dollars. Based on Bureau of Labor Statistics definition. |
