Are Big Box Stores Worth It? Apparently, Yes.
A recent study by King Retail Solutions (KRS) surveying over 1,200 consumers, made up of millennials, baby boomers, and Generation X, found that consumers are increasingly turning to non-traditional retailers for goods and services from food, groceries and prepared meals, to medical services and even haircuts.
Retailers like Whole Foods Market and Trader Joe’s are playing less of a role in consumer purchasing decisions – especially as “Big Box” retailers like Walmart, Costco, and Target offer a “one-stop-shop” for a variety of goods and services, including fresh produce, groceries and fresh meals.
According to KRS executive vice president, Andrew Swedenborg, “It can’t all be about one-stop-shop, but if it’s a retailer they appreciate, they are going to shop there and if new, non-traditional items are available for sale, they are going to buy those items…”
Of the respondents to the survey, 77% said that they bought groceries from non-traditional retailers in 2013. Of the non-traditional grocery retailers, Target and Walmart were ranked one and two, respectively, while Walgreen’s, CVS, and Costco rounded out the top five.
Surprisingly, higher income houesholds were more inclined to shop at non-traditional grocers. Of the respondents, 83% making over $150,000 a year purchased groceries from a non-traditional grocer, while 73% of those making less than $25,000 did so.
As 96% of the respondents said they would be purchasing groceries at big-box retailers in the coming year, the trend seems to only be growing as convenience and affordability out-weigh quality.