While American retailers find themselves in a slump, off-price retail outlets, which offer items at much lower price than their typically physical or on-line counterparts, are becoming increasingly popular among consumers, a leading global information company reported.
Nearly two thirds of all buyers shop at off-price stores. They also happen to be hardcore clothing buyers and represent 75 % of apparel purchases across all retail channels, according to NPD's receipt mining service, Checkout Tracking.
“Off-price retailers are resonating with fashion and cost-conscious consumers alike, and are stealing department store business for good reason,” said Marshal Cohen, chief industry analyst, The NPD Group, Inc.
Also, off-price apparel buyers are not a particularly loyal group, and shop at multiple off-price retailers as well as other retail outlets, NPD said in a release adding that “Off-price is second only to the online channel in terms of growth rate.”
Consumers above 45 years of age represent more than 50% of off-price apparel buyers. This age group, along with older millennials, aged 25 to 34 years, which represent 16 % of off-price apparel buyers, both increased their share of off-price apparel purchases, NPD's Checkout Tracking found.
Shopping visits made to off-price retail stores — whether a consumer made a purchase or not—increased by 4 % in the year ending April 2016 compared to same period last year. In the same period, off-price retailers converted 50 % of footfalls into a purchase, according to NPD's Shopper Insights Service, which tracks where and how consumers shop, including traffic, shopping conversion, demographics, and more.
Consumers are clearly looking for better deals and they know if they shop at an off-price retailer they will get them, noted Cohen. “Apparel shoppers are finding just what they want at off-price retailers at the right time and at the right price, and that isn't always the case with department stores,” he said. (SH)
Fibre2Fashion News Desk – India