Shifters spend more – but at the competitor

A new, valuable category of consumers called the “Shifters” — shoppers who move their purchases to new retailers — which will open up new windows of opportunity for retailers.

 A new IBM national survey of 30,000
U.S. consumers found they are changing their shopping habits to deal
with shifting budgets and incomes. The study shows that tighter
budgets and lower confidence have fundamentally changed consumer
behavior. Two-thirds of consumers surveyed said they are postponing
purchases or buying fewer items overall, while 60 percent of
consumers indicated they are shopping more often for products on sale
and using coupons more often. In light of this new shopping paradigm,
the report warns retailers against relying solely on past purchase
patterns to forecast future consumer demand.

The survey also
revealed that, on average, consumers will drop allegiance to
retailers after an average of 3.1 negative experiences. Market
conditions and high expectations have made consumers more impatient,
so retailers must stay focused on consistently delivering a superior
shopping experience for customers.

IBM has found 45
percent of Shifters have increased spend at their primary retailer
within the past year, and overall Shifters are spending more
year-to-year. Shifters are significantly more valuable than other
consumer segments because of their monthly spend and average basket
size. Shifters spend 37 percent more on average per month and 32
percent more during each shopping trip than non-Shifters. Shifters
also have a higher average household income than non-Shifters, and
more Shifters have more discretionary spend this year versus last
year. This class of consumers is also more discerning, consciously
sacrificing spending yet making more shopping trips. The top three
reasons Shifters bought products from new retailers were
price/promotion, convenience and product availability/assortment.