Survey: 80% of consumers actively looking for rebates
LEWISVILLE, Texas — Ninety-five percent of consumers are interested in products that come with rebates, while 80% of consumers actively seek out rebates, according to an annual consumer survey by rebate provider Parago.
The survey found that consumer preference for rebates versus instant discounts is growing. And while economic recovery may be on its way by the numbers, consumer sentiments around spending are still timid.
"With our third annual study of consumer shopping behavior, we have seen sustained sensitivity to price and willingness to hunt for bargains," Parago president and CEO Juli Spottiswood said. "Price perception is king, and consumers are indifferent to how that price point is achieved, whether through rebate, coupon, club or sale."
However, Spottiswood added, because consumers understand that rebates offer deeper discounts than other sales, there is a strong interest in the promotions and shoppers actively are looking for rebates before and during the shopping experience.
"As such, marketers are able to leverage rebates to drive lower price perception while gaining high value customer information during the redemption process," she said.
The rebate research was conducted independently through online delivery and surveyed more than 1,000 consumers. Key findings include:
Consumers’ preference for higher value rebates versus instant discounts grew;
80% of consumerssaid they look for rebates;
Because rebates are only offered for a specific period of time, they make 54% of shoppers feel like they caught an exclusive sale; and
57% of consumers feel that rebates nowadays are easy to redeem.
Target Clinic to open locations in Virginia, North Carolina
MINNEAPOLIS — Target has announced its plans to open new Target Clinic locations at four Target stores in northern Virginia and four Target stores in North Carolina, marking the first Target Clinics to open in these states.
The new clinics currently are under construction and will open on July 29.
“We are excited to introduce the Target Clinic experience in Virginia and North Carolina, which will provide convenient access to healthcare products and medical expertise,” said José Barra, SVP health and beauty at Target. “With our new Target Clinic locations, guests will now be able to conveniently seek medical treatment for minor illnesses, fill a prescription at Target Pharmacy and shop for other wellness needs, all during the same shopping trip.”
Along with increased access to quality healthcare services, the clinic openings also will bring new job opportunities to the communities. Hiring at the new locations currently is under way with open positions varying by store.
In addition to the new openings in Virginia and North Carolina, Target Clinic also will expand in Illinois and Minnesota. Target Clinic currently operates 44 locations throughout Minnesota, Maryland, Illinois and Florida. By the end of October, there will be 54 Target Clinics in a total of six states.
Walmart Q1 comps gain 2.6%
BENTONVILLE, Ark. — First-quarter profits at Walmart exceeded analysts’ estimates as same-store sales increased 2.6% and the company said its strategy of low prices on a broad merchandise assortment is resonating again with shoppers.
Sales for the quarter increased 8.6% to $112.3 billion, compared with $103.4 billion in the first quarter last year. The results would have been even stronger except for an approximately $800 million headwind related to a negative currency exchange rate. Earnings per share of $1.09 were a nickel ahead of analysts’ estimates and three cents higher than the top end of the company’s guidance of $1.01 to $1.06.
“Our overall performance reflects the success of Walmart’s business model: driving the productivity loop, leveraging expenses and investing in price leadership,” Wal-Mart Stores president and CEO Mike Duke said. “We believe that the momentum throughout our business positions us very well for the rest of the year.”
Strength was evident across all three of the company’s business segments, but it was the performance of the U.S. group that stood out, thanks to a 2.6% same-store sales increase that exceeded the company’s flat to 2% guidance range and marked the third consecutive quarter of U.S. comp improvement. Total U.S. sales increased 5.9% to $66.3 billion.
“In a highly competitive retail environment, Walmart U.S. is increasing price separation across categories and driving increased traffic to both the grocery and general merchandise areas of our stores,” Duke said.
Walmart U.S. president and CEO took things a step further with comments about the effectiveness of a clear U.S. strategy.
“Our merchants are focused on increasing sales through the right assortment at the right time and for the lowest price,” Simon said. “We will continue to invest in price to lower costs for our customers by enhancing leverage initiatives and managing expenses.”
The U.S. sales improvement resulted from larger transaction sizes and increased traffic to stores and also benefitted somewhat from an easy prior year comparison when comps declined 1.1%. A similar comparison situation exists in the second quarter with last year’s comp down 0.9%, but Simon this year’s second-quarter comps are expected to increase between 1% and 3%.
Sam’s got in on the act as well and saw its sales increase 7.9% to $13.8 billion. A same-store sales increase of 5.3%, excluding fuel, was significant considering Sam’s was up against a 4.2% prior year comparison.
“Sam’s Club is off to a great start this year, with continued strength in traffic and ticket. Membership engagement scores are at record highs, membership income is growing, and renewals and upgrades are strong,” Duke said.
Sam’s expect second-quarter comps to increase in the range of 4% to 6% on top of last year’s 5% increase.
Sales grew the fastest at Walmart international where roughly $1.9 billion in acquisition-related volume was offset by a negative $800 million currency exchange rate. On a constant currency basis, international sales increased 10.9% to $31 billion.
“Walmart International delivered strong sales growth in the first quarter and operating income grew faster than sales, increasing more than 20%,” Duke said. “We are very focused on improving profitability and returns, and with greater transitions to everyday low price in more markets, we have stronger customer traffic, which contributed to net sales growth.”