Springing Forward Into Sustained Growth
Presented by:
Laura Kennedy, Principal Analyst
Doug Hermanson, Senior Economist
Erin Kennedy, Analyst
Home Improvement Webinar
Series
May 9, 2014
Agenda
• Macroeconomic Conditions
–Shopper DNA: Have and Have Nots
• Ahead for Spring: Early Indicators of Shoppers’ Plans
• The Role of the Home Improvement Store
–Home improvement in the context of spring merchandising trends
–The future of home improvement retail
© Copyright 2014 Kantar Retail
2
Macroeconomic Conditions
© Copyright 2014 Kantar Retail
3
The Housing Market: A Key Recovery Driver
Existing home sales led the winter slowdown, but severe weather
not only to blame
Housing Market Measures*
• Leading indicators—
pending home sales,
mortgage apps.—
have only improved
modestly
• Eventually recovery
should be revived by
job/income gains and
added home supplies
• Rates will rise, but
remain affordable as
long as job and
income gains persist
1.6
Indices, 1990=1.00
100
New & Existing
Home Sales
1.4
1.2
90
80
70
1.0
60
0.8
Housing
Starts
0.6
50
40
30
0.4
20
0.2
10
0.0
0
* Starts and sales are through March
Source: U.S. Department of Commerce, National Association of Realtors, and Kantar Retail
© Copyright 2014 Kantar Retail
4
Now There Are Too Few Homes on the Market?
Current homeowners are cautious or unable to “trade up”
• Six months supply
consistent with the
“right” level
Existing Home Inventories
Months Supply of Homes (through March 2014)
• Inventories recovered
from spike that was fed
by foreclosures
• Low inventories good for
home prices, but
potentially bad for
existing home sales
• Low inventories will
boost homebuilding
Source: National Association of Realtors
© Copyright 2014 Kantar Retail
5
Interest Rates Key to Housing/Investment Outlook
Rates will remain relatively low even as they begin to rise
Interest Rates Over Time Periods
(Average Mortgage Rate and Fed Funds Rate)
• Higher rates will
not extinguish
recovery
• Will remain low
enough to sustain
investment and
to drive persisting
job, income gains
13.4
Rising
how
much
more?
9.2
6.8
4.8
11.1
Rising
when
& how
fast?
6.0
3.5
4.3
4.0
0.6 0.25 0.25
Fixed 30-Year Mortgage Rate
Fed Funds Rate
Long-Term Rates
Short-Term Rates
1978-1985
1996-2007
1986-1995
2008-2012
Low Point 2012-2013*
From June 2013
* Low point = June 2012 to May 2013
Source: U.S. Federal Reserve Board and Kantar Retail
© Copyright 2014 Kantar Retail
6
Housing Market: Driving State/Local Conditions
Home prices are key market indicator of jobs and wealth gains
States by Recovery in Jobs & Home Prices
17%
• Home prices back
above pre-recession
peak in 11 states
(including D.C.)
• Still other states
seeing sizeable jump
in home prices from
recession low
• Especially in West
and key states (AZ,
CA, FL, MI, NV)
16%
57%
16%
23%
29%
41%
14%
24%
12%
11%
24%
20%
8%
8%
36%
D.C
45%
Alaska Hawaii
6%
17%
24%
24%
Jobs Recovery by State*
Unrecovered
Partly Recovered
Recovered
* Recovered states have gained back
nearly all or more than all jobs lost during
recession; unrecovered states have
gained back less than half of jobs lost
34%
17%
Home Price Recovery by State**
At or above pre-recession peak
Still below peak, but growing fast
**Measures current home prices (through Q42013)
relative to recession low point (% is increase from low)
Source: U.S. Bureau of Labor Statistics, Federal Housing Finance Agency, and Kantar Retail
© Copyright 2014 Kantar Retail
7
“...we are looking at
household formation.
Candidly, it was pretty weak,
but…why was it so weak? It
goes back to credit availability.
So we need to get those
millennials into a home…”
-Carol Tomé - The Home Depot EVP, Corporate Services & CFO
Gen Y
Boomers
and Seniors
Delaying household formation
as job and income gains lag
Benefiting most from rebound
in wealth—home prices and
stock market
First time home buyers
squeezed more by recent
decrease in home affordability
More savings and home equity
in previous home to make new
home purchase
Hurt more by tight lending
standards
© Copyright 2014 Kantar Retail
Source: Kantar Retail research and analysis; Company reports
8
Income Effects Will Boost 2014 Sales Growth
Calendar turns on temporary tax impact of 2013
• After-tax income gains
were about 1 PPT
lower in 2013
Growth Rate of After-Tax Household Income
Not Adjusted for Inflation
Net Income Growth
End of Social Security payroll tax cut
Likely Sequester impact
• Decrease mostly due
to the end of the
Social Security tax
cut—sequester impact
was less than feared
• Sustained jobs
recovery points to
stronger income gains
in the longer term
PreRecession
Trend
Source: U.S. Department of Commerce, U.S. Congressional Budget Office, and Kantar Retail
© Copyright 2014 Kantar Retail
9
Persisting Job Gains Key to Growth Pickup
Recent trend has been stronger than conventional wisdom
Monthly U.S. Job Growth
• April posts strong job
gains after weather
dampened some winter
hiring
Average Month-to-Month Change in Jobs in Thousands
• Trend that emerged in
2012-2013 suggests jobs
have returned to prerecession growth
• Gains likely to persist
given positive trends in
jobless claims and
investment
Source: U.S. Department of Labor and Kantar Retail
PreRecession
Trend
© Copyright 2014 Kantar Retail
10
Confidence vs. Spending Intentions: Caution Metrics
For retail, spending intentions are a less volatile indicator
• Confidence has
rebounded from Oct.Nov. lows, but dipped
slightly in April
• Spending intentions for
home improvement
shoppers moved up in
March
• Spending intentions for
all shoppers that are
available for April
indicate further
improvement
1
2
Confidence is through April 2014 as reported by the Conference Board
Spending Intentions of home improvement shoppers from Kantar Retail ShopperScape® is through
March 2014; represents sum of % of planning to spend about the same or more at all of retail in the
coming month compared to a year ago
Source: Conference Board, and Kantar Retail ShopperScape®
© Copyright 2014 Kantar Retail
11
More Households Plan to Spend Similar
An improvement or deterioration depending on perspective
• Home improvement
households moving
toward spending about
the same as a year
ago at all retailers
• Suggests strong
growth in homegoods
partly at the expense
of other categories
• Shift is from fewer
Have Not households
cutting back and fewer
Have households
planning to spend
more
Source: Kantar Retail ShopperScape®
Home Improvement Shoppers’ Spending Intentions
Percent of Shoppers Planning to Spend in the Coming Month
(through March 2014)
Plans to spend about
the same
Plans to
spend less
+4.6%
-3.4%
Plans to spend more
-1.2%
Represents sum of percentage of primary household home improvement and hardware store shoppers
planning to spend in the coming month at all retail, not just home improvement
© Copyright 2014 Kantar Retail
12
Shopper DNA: Have and Have Nots
© Copyright 2014 Kantar Retail
13
Shaped by What Defines and Divides Them
External forces further divide Haves and Have Nots
Haves:
Have Nots:
“The US is experiencing
Gaining share of income Losing share of income
bifurcation of income with
the middle class shrinking...
[T]his bifurcation will challenge
Have Nots…
Haves…
the traditional thinking about
Inflation
line structures and it could
• Part of large older
Haves…
Have Nots…
•
Part
of
large
younger,
provide opportunity for us on
cohort nearing
working-age
cohort
both ends.”
retirement
• Some wealth
• Little
wealth
-Craig Menear, The Home Depot
• Some•wealth
A college degree
• No college
• Little degree
wealth
• A college
degree
• Married/couple
Unmarried/divorced
•• No
college degree
• Married/couple
• Plan to retire late
• Plan to retire early
• Unmarried/divorced
• An urban resident
• Plan to
retire late
Source: Kantar Retail analysis
• A non-urban resident
Government
• Plan to
Austerity
retire early
© Copyright 2014 Kantar Retail
14
Government Aid = About 1/3 of Have Not Income
Grown significantly in 40 years, especially last few years
“Haves”
“Have Nots”
40% of households
60% households
~25% income
 < $62,000 Per Year
34%
33%
31%
$
28%
~75% of income
> $62,000 Per Year Household Income
28%
65%
20%
1971
35%
1991
2001
2011
69%
72%
72%
74%
1971
1981
1991
2001
2011
2020FC
26%
80%
1981
66%
67%
2020FC
Government Entitlement, Assistance Programs
Sources: U.S. Department of Commerce, and Kantar Retail analysis
97%
3%
92%8%
© Copyright 2014 Kantar Retail
15
Where do Have & Have Nots Spend the Most?
Where Shoppers Spend the Most on Home
Improvement Products
All
Shoppers
Have Nots
Haves
66%
60%
73%
The Home Depot
33%
28%
37%
Low e's
28%
25%
30%
Menard's
6%
6%
5%
Other home improvement center
1%
1%
1%
Hardw are Stores
5%
6%
4%
Ace Hardw are
3%
4%
3%
True Value
1%
1%
1%
Sears Hardw are
0%
0%
0%
Do it Best
0%
0%
0%
Other hardw are store (e.g. Do it Best)
1%
1%
1%
14%
19%
9%
Walmart/Walmart Supercenter
10%
14%
5%
Target/SuperTarget
3%
3%
3%
Kmart
1%
1%
1%
Other discount store/supercenter
0%
1%
0%
Amazon.com
1%
1%
1%
Sears
1%
1%
1%
Warehouse club retailer
1%
1%
1%
Value discounter/dollar store
1%
1%
0%
eBay.com
0%
0%
0%
Tractor Supply Company
0%
0%
0%
Other retailer not listed
9%
9%
8%
Hom e Im provem ent Centers
Mass Retailers
Haves more likely to spend
the most at Lowe’s and The
Home Depot than Have Nots
Have Nots more likely to spend
the most at Hardware Stores
and Walmart than Have
households
Highlighting indicates significant difference between Haves and Have Nots
Source: Kantar Retail ShopperScape®, January 2013–March 2014
© Copyright 2014 Kantar Retail
16
What Appeals to Have & Have Nots
Why Shoppers Choose the Retailer Where They
Spend the Most on Home Improvement Products
All
Shoppers
Have Nots
Haves
Convenient location
50%
47%
54%
Better price(s) for the item(s) I need
42%
44%
40%
Better selection of products
29%
27%
31%
More likely to have w hat I need in stock
20%
19%
20%
Faster/easier shopping experience
12%
12%
13%
Higher quality products
10%
10%
11%
More helpful/know ledgeable associates
10%
10%
10%
Item on sale/better sale prices
10%
11%
10%
Better able to one-stop shop for many categories
10%
10%
10%
Had specific item/brand I w anted or needed
9%
9%
9%
Better return policy
8%
8%
7%
Store credit card/rew ards program
Had gift card/gift certificate redeemable at this
retailer
5%
5%
5%
3%
3%
4%
Better/more convenient delivery/installation services
3%
3%
4%
Had store coupon, rebate or other promotional offer
3%
3%
3%
Availability of how -to clinics
2%
3%
2%
More/better options to finance my purchase
Recommended/purchased by
contractor/builder/designer
2%
3%
2%
2%
2%
2%
Other
4%
4%
5%
No real reason -- bought on impulse
4%
6%
2%
Convenience most important
for both segments, but more
so for Haves
Selection, quality, and shopping
experience more likely to
influence where Haves spend
the most
Have Nots most likely to be
focused on price when
choosing a retailer
Highlighting indicates significant difference between Haves and Have Nots
Source: Kantar Retail ShopperScape®, January 2013–March 2014
© Copyright 2014 Kantar Retail
17
Shopper DNA: Most Important Factors When
Shopping
How age-income segments differ from shared factors of
importance
Source: Kantar Retail ShopperScape®, January and February 2014, and Kantar Retail analysis
© Copyright 2014 Kantar Retail
18
Retailers' Shopper Mix Relative to Overall
Shopper Mix*
Youngest Have Not households will grow ~ 2% per year; 15% in total by 2020;
Oldest Have Not households will grow ~ 3.8% per year; 30% in total by 2020;
3 Oldest Have households will grow ~ 1.6% per year; 12% in total by 2020;
4 Youngest Have housholds may show little or no household growth;
*Have households=income greater than $60,000 per year for U.S. households
**Have Not households = income less than $60,000 per year for U.S. households
1
2
Source: Kantar Retail ShopperScape®, January-December 2013, and Kantar Retail analysis
*For 2013, Based on Past-Four Week Shoppers
© Copyright 2014 Kantar Retail
19
Key Macroeconomic Takeaways
• Macroeconomic Conditions.
o Winter slowdown due to reduced home affordability and tight home
inventories, as well as severe weather
o Job gains will alleviate or offset any softness in home sales in 2014,
keeping home improvement spending growing at a solid pace
• Have and Have Nots.
o Understanding how younger and older shoppers shape Have and Have
Not shopping trends will be key for the home improvement channel
o Older Haves that are currently the largest shopping base for
home improvement are expected to grow in numbers, but will
have different needs and wants
o The biggest growth in households will be among Have Nots.
Appealing to the differentiating needs of young and old Have
Nots will be needed to sustain solid-to-strong growth in the
channel
© Copyright 2014 Kantar Retail
20
Ahead for Spring: Early Indicators of
Shoppers’ Plans
© Copyright 2014 Kantar Retail
21
Home Improvement Shopper Penetration Picks Up
But still down from the same time last year
Shopper Penetration
(Percentage of shoppers who shopped retailer in past four weeks)
35.0%
30.3%
30.0%
24.9%
27.9%
25.0%
22.9%
20.0%
15.4%
15.0%
12.0%
10.0%
8.7%
5.0%
4.7%
0.0%
The Home Depot
Lowe's
Source: Kantar Retail ShopperScape®, March 2012-March 2014
Hardware stores
Specialty HI retailers
© Copyright 2014 Kantar Retail
22
Will Take Two Drive Traffic in Q2?
Lowe’s, Home Depot intensify spring promotions
April 7, 2014
Source: Kantar Retail store visits; company websites
May 7, 2014
© Copyright 2014 Kantar Retail
23
Younger Shoppers Could Drive Spending This
Year
Home Improvement Project Spending Plans
(Among all shoppers)
A lot/little
more
About the
same
A little/lot
less
All Shoppers
21%
47%
31%
Generation Y
23%
51%
26%
Generation X
22%
51%
27%
Baby Boomers
21%
46%
32%
Seniors
17%
37%
45%
Children <19 at home
24%
49%
27%
No children <19 at home
20%
47%
33%
Haves
26%
49%
25%
Have Nots
18%
46%
36%
Plan to spend…
Looking to maintain
or boost HI spending
versus last year; less
likely to spend less
Note: Bolded red percentages are significantly lower than all shoppers at 90% confidence, and
bolded green percentages are significantly higher than all shoppers at 90% confidence
Source: Kantar Retail ShopperScape®, March 2014
© Copyright 2014 Kantar Retail
24
Households Plan Painting, Minor Projects
Flooring tops bigger-ticket projects on shoppers’ lists
Types of Home Improvement Projects That Shoppers Will
Spend on This Spring
(Among all shoppers)
19%
Paint or faux finish an interior room
12%
Minor plumbing (e.g., replace a faucet)
9%
Minor electrical (e.g., install a ceiling fan or light fixture)
Install new carpet, flooring, or tile
9%
Paint exterior of residence
9%
9%
Install new window treatments (e.g., blinds, curtains, drapes)
Install organization/storage system (e.g. in closet, bedroom, kitchen,…
8%
Renovate a bathroom
7%
Make energy-efficient upgrades
7%
5%
Replace roof, siding, or windows
Renovate a kitchen
4%
Build a deck or patio
4%
Set up a nursery/child's room
Finish a basement
Room addition
Source: Kantar Retail ShopperScape®, March 2014
2%
2%
2%
© Copyright 2014 Kantar Retail
25
Haves Lean Toward Bigger-Ticket Projects
Home Improvement Project Type
(Among shoppers who plan to complete at least one project)
Home Improvement Project Type
What does this
difference say
about Have vs.
Have Not
values?
Have Nots
Haves
Paint or faux finish an interior room
28%
32%
Minor plumbing (e.g., replace a faucet)
18%
19%
Paint exterior of residence
15%
13%
Minor electrical (e.g., install a ceiling fan or light fixture)
14%
16%
Install new window treatments (e.g., blinds, curtains)
Install organization/storage system (e.g. in closet,
bedroom, kitchen, bathroom, garage, etc.)
Install new carpet, flooring, or tile
13%
14%
12%
13%
12%
17%
Make energy-efficient upgrades
10%
11%
Replace roof, siding, or windows
9%
7%
Renovate a bathroom
9%
13%
Build a deck or patio
6%
7%
Renovate a kitchen
6%
7%
Set up a nursery/child's room
4%
3%
Room addition
3%
3%
Finish a basement
2%
4%
Only project type
that Have Nots
outnumber Haves
Note: Bolded red percentages are significantly lower than all shoppers at 90% confidence, and
bolded green percentages are significantly higher than all shoppers at 90% confidence
© Copyright 2014 Kantar Retail
Source: Kantar Retail ShopperScape®, March 2014
26
Painting Projects Rank Higher for Have Nots
Have Nots Project Ranking*
Haves Project Ranking*
Paint or faux finish an interior room
1
Paint or faux finish an interior room
Minor plumbing
2
Minor plumbing
Install new carpet, flooring, or tile
3
Paint exterior of residence
Minor electrical
4
Minor electrical
Install new window treatments
5
Install new window treatments
Install organization/storage system
6
Install organization/storage system
Paint exterior of residence
7
Install new carpet, flooring, or tile
Renovate a bathroom
8
Make energy-efficient upgrades
Make energy-efficient upgrades
9
Replace roof, siding, or windows
Replace roof, siding, or windows
10
Renovate a bathroom
*Rank was determined by ordering the percentage of people who plan to complete the project from highest to lowest.
Source: Kantar Retail ShopperScape®, March 2014
© Copyright 2014 Kantar Retail
27
Difference in Rankings Among Generations
Reflect Life Stage Priorities
Gen Y’s Ranking
Boomers’ Ranking
Paint or faux finish an interior room 1
Paint or faux finish an interior room
Install organization/storage system 2
Minor plumbing
Install new window treatments 3
Cheap, least
invasive
Paint exterior of residence
Minor electrical 4
Minor electrical
Minor plumbing 5
Install new carpet, flooring, or tile
Renovate a bathroom 6
Paint exterior of residence 7
Install new carpet, flooring, or tile 8
Make energy-efficient upgrades 9
Set up a nursery/child's room 10
Install new window treatments
Renovate a bathroom
Make energy-efficient upgrades
Install organization/storage system
Replace roof, siding, or windows
*Rank was determined by ordering the percentage of people who plan to complete the project from highest to lowest.
Source: Kantar Retail ShopperScape®, March 2014
© Copyright 2014 Kantar Retail
28
Households Focused Most on Lawn Care
More discretionary gardening projects also part of spring plans
Types of Gardening and Landscaping Projects That
Shoppers Will Spend on This Spring
(Among all shoppers)
Maintain/improve lawn (re-seed, repair
problem areas, remove weeds, etc.)
40%
Plant flowers or bulbs
35%
Grow or maintain a vegetable/herb
garden
30%
Grow or maintain a flower garden
26%
Other
Grow or maintain a "container garden"
Plant trees/shrubs
Source: Kantar Retail ShopperScape®, March 2014
20%
17%
13%
© Copyright 2014 Kantar Retail
29
The Role of the Home Improvement Store:
Spring Merchandising Trends
© Copyright 2014 Kantar Retail
30
Home Depot Focuses on Savings, Lowe’s
Focuses on Occasions
Source: Kantar Retail store visit
© Copyright 2014 Kantar Retail
31
Spring Trends Across Channels
How home improvement retailers fit into the landscape
Shopper Engagement
•
•
•
Pre-trip planning
Savings/loyalty
In-store experience
Source: Kantar Retail analysis
Vibrant Marketing
•
•
In-store
Online
Springtime Solutions
• Easter/Holiday
• Spring Cleaning
• Outdoor living
© Copyright 2014 Kantar Retail
32
Shopper Engagement
Home Depot and Lowe’s Acknowledge Pre-Trip
Planning Online
Home Depot engages
with shoppers via
social media sites,
project guides on
HomeDepot.com
An email from
Lowe’s offers tips
for springtime
projects
Source: Kantar Retail Analysis, Company website, Company Twitter, Facebook
© Copyright 2014 Kantar Retail
33
Shopper Engagement
Lowe’s Leverages NCAA March Madness as a
“Microseason” Leading Up to Spring
LG’s “Let’s Do Game Day
Right” promotion is featured
among Lowe’s kitchen displays
Source: Kantar Retail store visits
Lowe’s teamed with Scotts to
offer March Madness
promotion
© Copyright 2014 Kantar Retail
34
Vibrant Marketing
Lowe’s and Home Depot Create a Bright and
Festive Experience
Colorful duct tape
brightens aisles
and builds baskets
at Lowe’s
Bright “spring is
calling” signs set
the mood at Lowe’s
Balloons create
a pleasant and
festive shopping
experience at
Home Depot
Source: Kantar Retail store visits
© Copyright 2014 Kantar Retail
35
Springtime Solutions
Lowe’s Emphasizes Spring Cleaning and Home
Refresh
Lowe’s uses colorful displays to promote spring cleaning and painting;
Drop zones and end caps build baskets by providing shoppers with all of the
necessary supplies to take on a cleaning or painting project
Source: Kantar Retail analysis & store visits
© Copyright 2014 Kantar Retail
36
Springtime Solutions
Home Depot Solutions Focus on Outdoors
Co-branded entertainment solutions, plus gardening projects
Spring Black Friday
signage features
grilling solutions and
patio furniture
Pre-packaged
gardening set offers
solution for new
gardeners
In the Garden Center,
directing shoppers
online; prominence of
branded guidance
Source: Kantar Retail research and store visits
© Copyright 2014 Kantar Retail
37
Springtime Solutions
Healthy Lifestyles Gain Prominence in Garden
Center
Lowe’s features
an entire display
of fruit and
vegetable seeds
Organic plant food
sits in front of
Lowe’s “healthy
life” display
Home Depot
offers window sill
gardens for urban
shoppers
Source: Kantar Retail research and store visits
© Copyright 2014 Kantar Retail
38
Springtime Solutions
Walmart’s Outdoor Event Aims to Drive Seasonal
Traffic
A seed display frames
gardening as the way
to a healthy lifestyle
Walmart’s lawn and
garden section is
equipped with
grilling solutions
Co-branded
Burpee display
with Scotts
Source: Kantar Retail store visits
© Copyright 2014 Kantar Retail
39
The Role of the Home Improvement Store:
Store of the Future
© Copyright 2014 Kantar Retail
40
Given the Impact of Digital…What Role Will the
Store Play Going Forward?
The store is just one touchpoint with the shopper
Source: Kantar Retail research and analysis
© Copyright 2014 Kantar Retail
41
Going Forward, the Store Must Seize Its Role
Education
Navigation
Inspiration
Where are we
seeing glimmers
of this now?
Source: Kantar Retail analysis
© Copyright 2014 Kantar Retail
42
Guiding the Shopper Through the Shelf is Simple,
But Inconsistent
Elsewhere, brands provide the
guidance
?
Information, but no real
guidance
Source: Kantar Retail store visits
© Copyright 2014 Kantar Retail
43
Lowe’s Garden Center Showcases More
Shelf Guidance
Source: Kantar Retail store visit
© Copyright 2014 Kantar Retail
44
Garden Centers Continue to Highlight HI
Retailers’ Educational Capabilities
Plus provides crossbranded solutions
Source: Kantar Retail store visits
© Copyright 2014 Kantar Retail
45
Home Depot Focuses on Branded Education in
Garden
Source: Kantar Retail store visits
© Copyright 2014 Kantar Retail
46
Spelling Out Project Steps Creates a
Shopping List
But there is such a
thing as too much
information…
Source: Kantar Retail store visits
© Copyright 2014 Kantar Retail
47
Are These Bathroom Displays the “Pods” of
the New Customer Experience?
Accessories (PL and
national brands)
displayed adjacent
Source: Kantar Retail store visit
“[Shoppers] told us they wanted to
visualize the results of this
project…they want to understand
what it looks like in end use, but they
also wanted the touch and feel of the
projects, with the different products.”
–Greg Bridgeford, February 2014
Each element of the design
is identified, priced;
encouraged to shop on
Lowes.com
© Copyright 2014 Kantar Retail
48
Home Depot Builds Online into Its Solutions
Source: Kantar Retail store visits
© Copyright 2014 Kantar Retail
49
From Other Channels, Future Store Takes Shape
Education
Navigation
Inspiration
Source: Kantar Retail analysis
© Copyright 2014 Kantar Retail
50
Kroger Recipe Stations Provide Instant Solutions
Could HI project ideas be digitized?
Present shoppers with a
multitude of meal solutions based
off of season, type of meal,
prep/cook time.
Source: Kantar Retail store visit
© Copyright 2014 Kantar Retail
51
Sam’s Club Automates Free Samples w/ Freeosk
How could sampling be integrated with new products?
Freeosk allows shoppers
to learn about a product,
try it, and grab a full size
all in one place
Source: Kantar Retail store visit
A digital screen displays
an ad for the product.
Shoppers scan their
loyalty card for a sample
Bright orange “FREE
SAMPLE” sign will attract
shoppers
© Copyright 2014 Kantar Retail
52
Drugstores Offer Pharmacy Services Online
Could more on-demand services be on the way for DIY?
Source:
© Copyright 2014 Kantar Retail
53
Closing Considerations: Seize the Chance to
Shape the New HI Experience
Find opportunities to:
–Help shoppers navigate the store—including online. This will
require working with retailers to create signage and other
informational material. Identifying opportunities to co-merchandise
and provide solutions will also be helpful.
–Educate shoppers, as well as associates and your retailer partners.
At times, it will be necessary to build both the category and your
brand. Emphasize the importance of the in-store associate to this
mission. And remember that cost remains a concern for shoppers at
all ends, so explaining the value of your product will be crucial.
–Inspire shoppers to build baskets—and retailers to create
projects. Here is where data will be crucial. Determining shoppers’
paths to purchase and pinpointing where you can build loyalty for
both your brand and the retailer’s will help keep shoppers from falling
down “chutes” created by digital.
Source: Kantar Retail research and analysis
© Copyright 2014 Kantar Retail
54
June 4–5 in Chicago, IL or June 18–19 in New York, NY
New Planning Coordinates: Navigating The Multichannel World
Mid Year
Forum
Join Kantar Retail thought leaders for our signature Mid Year Forum aimed at ensuring you
formulate future plans that are strategically vital, predictively accurate, and closely aligned
against your most important customers.
Please email events@kantarretail.com for more information.
Contact:
Laura Kennedy
Principal Analyst
Laura.Kennedy@kantarretail.com
Doug Hermanson
Senior Economist
Doug.Hermanson@kantarretail.com
617.912.2851
www.kantarretailiQ.com
614.355.4044
www.kantarretailiQ.com
Erin Kennedy
Analyst
Erin.Kennedy@kantarretail.com
617.912.2849
www.kantarretailiQ.com
© Copyright 2014 Kantar Retail