Walmart Continues Gaining Customers as Holidays Approach

So where will consumers be shopping for gifts in the upcoming holidays?

The obvious answer would be Walmart, and, in this case, the obvious answer would be correct. Yet, from apparel to toys, what’s remarkable is how dominant the retailer is and how the recession is propelling it to even greater strength.

It turns out that Target isn’t doing badly, either.

In a BIGresearch study, 22 percent of consumers interviewed during the first week of October said they have taken to shopping Walmart most often for children’s toys, up from 19 percent a year ago. While Toys“R”Us remains in second place, the 15 percent who now say they prefer to shop there have less company than the 18 percent who said the same at this time last year. Target at seven percent, Kmart, at just over one percent, and Amazon, at just under one percent, round out the top five.

When it comes to adult gifts such as HDTVs and other electronics, Best Buy and Walmart are the destinations of choice, named by 32 percent and 19 percent of consumers respectively, and more popular this year than last, BIGresearch stated. Target, at just over three percent, Amazon, at just under three percent, and Sears at two percent, trail.

In women’s clothing, Walmart ranks as the top retailer with 13 percent of consumers reporting that they shopping there most often, up a little over one point from a year ago. Kohl’s remains in second place at 10 percent, up from nine percent in 2008, and is followed by J.C. Penney at eight percent, Macy’s at seven percent and Target at three percent.

Men’s apparel is more of the same with the top three, Walmart at 16 percent, Kohl’s at 10 percent, and J.C. Penney at nine percent, all evincing year over year growth in consumer preference. They are followed by Macy’s at six percent, and, in a tie, Target and Sears at three percent.

The difference in children is that Target, at just under six percent, jumps into third place amid Walmart, 15 percent, Kohl’s, six percent, J.C. Penney, four percent, and Macy’s, two percent. Price is the main motivator in children’s clothing purchases, named a critical consideration by half of those responding to the study and far outstripping selection, 34 percent, quality, 27 percent, location, 24 percent, and availability of sizes, 20 percent.

The BIGresearch Consumer Migration Index indicated that the two big discounters have positioned themselves for long-term gains in children’s apparel sales. When indexing new shoppers stores have won in the past year against consumers who have departed a particular sales floor, BIGresearch determined that Walmart and Target are gaining new customers. Walmart’s advance was a bit over one point and Target’s one percent on the nose while J.C. Penney and Kmart lost customers at more than twice the rate they gained them.

Of those consumers changing stores, 13 percent said they were doing so due to high prices, while poor selection, six percent, decline of store appearance, four percent, poor quality, four percent, competitor ads, three percent, and long checkout or dressing room lines, three percent, also motivated switching.