《Placer.ai:2023年连锁服装折扣店的持久成功秘诀深度研究报告(英文版)(15页).pdf》由会员分享,可在线阅读,更多相关《Placer.ai:2023年连锁服装折扣店的持久成功秘诀深度研究报告(英文版)(15页).pdf(15页珍藏版)》请在三个皮匠报告上搜索。
1、August 2023The Enduring Successof Off-Price ApparelChainsDiscover the shopping patterns driving steady visit increases inthe off-price apparel segment and find out which factors arelikely to drive further growth in 2023 and beyond.1Table of ContentsA Deep Dive into the Thriving Off-Price Sector3Off-
2、Price is Still Going Strong3Success Rates Vary by State With Potential for Growth4Off-Price Growth Strongest in Northeast and Midwest4Determined Bargain Hunters Navigating Multiple Chains for Deals5Larger Store Fleets,More Crowded Stores6Cross-Shopping Between Off-Price Brands on the Rise6Different
3、Behaviors,Different Consumers8The Link Between Later Visits and Longer Dwell Times8Different Audiences for Different Off-Price Chains9Luxury Off-Price Chains Pull Ahead of Their Full-Price Sister Stores11Off-Price Luxury Pulling Ahead11Different Shopping Journeys for Luxury and Off-Price Luxury12Off
4、-Prices Consistent Strength13Key Takeaways13 2023 Placer Labs,Inc.|More insights at placer.ai|2A Deep Dive into the Thriving Off-Price SectorThe past few years have been good to off-price apparel brands.The segment quicklybounced back following the initial pandemic closures,and 2021 visits to leadin
5、gchains such as Burlington,Ross,and T.J.Maxx were generally higher than they were in2019.And although Omicron,rising gas prices,and inflation,slowed down growth in2022,data from H1 2023 indicates that visits to the off-price segment are back on therise.So what is driving off-price visits?Which marke
6、ts saw the most off-price growth?Whatcan cross-shopping reveal about off-price consumers shopping preferences?Andwhere does off-price luxury fit into the mix?Leveraging location intelligence tools toanalyze the state of the off-price segment can answer these questions and provide acurrent snapshot o
7、f the segment on the rise.Off-Price is Still Going StrongYear-over-year(YoY)visits to the apparel category(excluding off-price)fell in H1 2023as rising costs led many consumers to cut back on non-essentials.And although thevisit gap narrowed in June perhaps thanks to the increase in consumer confide
8、nce visits to the apparel category(excluding off-price)remained below 2022 levels andunderperformed the wider retail average.Meanwhile,H1 2023 foot traffic to theoff-price segment skyrocketed,with June 2023 visits up 13.3%YoY.The current success is likely due to a confluence of factors.The off-price
9、 segment hastraditionally maintained a minimal e-commerce presence,so a larger share ofoff-price shopping takes place in brick-and-mortar venues when compared to otherapparel categories.Rising costs have also led many consumers to trade down or seekout affordable luxuries,while other consumers may b
10、e attracted to the“treasurehunt”aspect of off-price shopping.The slow return to office and the normalization ofhybrid work may also be driving visits,as consumers refresh their office wardrobewith off-price pieces that will only be worn a couple days a week.Finally,some of the visit increase is like
11、ly due to families needing to buy shoes andclothes for their growing children without breaking the bank which may also explainthe stronger YoY growth in June and July,with Back-to-School season underway.2023 Placer Labs,Inc.|More insights at placer.ai|3Success Rates Vary by State With Potential forG
12、rowthWhile off-price chains as a whole performed well in the first half of 2023,divingdeeper into the regional data can uncover markets with particularly strong growthpotential.Off-Price Growth Strongest in Northeast and MidwestOff-price foot traffic was strong nationwide in H1 2023,with every state
13、 seeing a YoYincrease in off-price visits.Certain large states,including Texas and California,saw adouble-digit increase in off-price foot traffic YoY an impressive feat given the size ofthese markets.But the trend was even more pronounced in the smaller markets of the Midwest andNortheast,with off-
14、price traffic in states such as Iowa,Nebraska,South Dakota,andVermont up by over 20%YoY.Of course,some of the growth in these regions wasdriven by expansion even one new store can lead to a spike in visits in states withrelatively few off-price venues.But YoY visits per venue were also generally ele
15、vated 2023 Placer Labs,Inc.|More insights at placer.ai|4in these states,which suggests that both new and old stores in these markets arereceiving more visits and that these states may have potential for even furthergrowth.Determined Bargain Hunters Navigating MultipleChains for DealsAnalyzing the ch
16、ains leading the off-price segment provides further insight into theshopping behaviors and demand driving visit growth in 2023.2023 Placer Labs,Inc.|More insights at placer.ai|5Larger Store Fleets,More Crowded StoresRoss,Burlington,and TJX-owned Marshalls and T.J.Maxx have all expanded their storefo
17、otprint recently while still seeing consistent YoY growth in visits-per-venue in H12023.Even Ross which did see a dip in YoY visits-per-venue between March and May2023 as the chain expanded more aggressively than its peers returned tovisits-per-venue growth in June and July.The almost across-the-boa
18、rd growth in visits-per-venue means that,on average,off-price venues are receiving more visits than last year,even though the chains areoperating with larger store fleets.These trends indicate that the expansions areanswering an existing and potentially growing demand for off-price apparel and thatn
19、ew stores are filling up quickly.Cross-Shopping Between Off-Price Brands on the RiseLooking at cross-shopping patterns(what percentage of visitors to chain A also visitedchain B in a given time period)may help to explain consumers current attraction to 2023 Placer Labs,Inc.|More insights at placer.a
20、i|6the off-price concept.Between H1 2022 and H1 2023,the share of cross-shoppingbetween the various off-price leaders increased,as shoppers at Ross,Marshalls,T.J.Maxx,and Burlington visited more than one off-price leader more frequently.The increase in cross-visitation speaks to the determination of
21、 off-price shoppers tofind the best deals.Shopping at an off-price apparel store can be hit or miss,anddifferent chains even different stores within the same chain may have verydifferent inventories during the same period.The traffic data indicates that off-priceshoppers seem determined to unearth t
22、he best bargains,even if it means visitingmultiple retailers to find the perfect product at the most attractive price.The rise in the rates of visitors visiting more than one off-price chain also speaks tothe allure of the treasure-hunt experience.Some of these retailers specifically Rossand Burling
23、ton have an extremely limited online presence,so consumers wanting toshop the latest bargains need to visit the physical store.And the cross-shopping dataindicates that shoppers are ready and willing to make a real-life trip to these brandsbrick-and-mortar outlets and compare prices and products in
24、person in the hopes offinding a particularly valuable offer.2023 Placer Labs,Inc.|More insights at placer.ai|7 2023 Placer Labs,Inc.|More insights at placer.ai|8Different Behaviors,Different ConsumersDespite the substantial similarities between the four off-price leaders,the chains alsoexhibit certa
25、in differences.The Link Between Later Visits and Longer Dwell TimesTJX chains Marshalls and T.J.Maxx receive a larger share of visits earlier in the day,with over 30%of visits to the chains taking place between 12 and 3 PM.Meanwhile,Ross and Burlington tend to see a comparatively larger share of eve
26、ning visits 18.2%and 19.0%,respectively,compared to just 14.8%and 15.8%for T.J.Maxx andMarshalls,respectively.Ross and Burlington also have slightly longer in-store dwelltime than Maramaxx perhaps thanks to Ross and Burlingtons relatively large shareof evening visits.The difference in hourly visit d
27、istribution may be partially due to differences inopening hours.T.J.Maxx and Marshalls stores typically close around 9 or 9:30 PM,while many Ross and Burlington stores remain open until 10:30 or 11 PM.This meansthat Ross and Burlington visitors have more time to shop in the evening,after thedays obl
28、igations are done.Conversely,T.J.Maxx and Marshalls shoppers who arestopping by during their lunch break likely have less time to browse and theseshoppers may also be engaging in shorter post-work visits due to these chainsshorter opening hours.2023 Placer Labs,Inc.|More insights at placer.ai|9Diffe
29、rent Audiences for Different Off-Price ChainsBut diving deeper into the psychographic makeup of each chains visitor baseindicates that the differences in visit times may also reflect more fundamentaldifferences between the off-price chains audience profiles.Analyzing the True TradeArea for Ross,Burl
30、ington,T.J.Maxx,and Marshalls using the Experian:Mosaic datasetreveals that T.J.Maxx and Marshalls,with their shorter,earlier-in-the-day visits,served a relatively large share of suburban families in H1 2023.Meanwhile,Ross andBurlington,with their larger share of evening visits,attracted a larger sh
31、are of youngurban singles who may have an easier time shopping at night without worryingabout leaving children unattended.These psychographic differences could explain the differences in dwell time betweenthe chains.Parents may have a harder time taking their children on lengthy shoppingtrips,while
32、older consumers may not have the patience to take the time to gothrough each rack in the hope of discovering a gem.It seems,then,that retailers looking to increase in-store dwell time might focus onattracting urban singles,who may be more likely to visit stores in the evening when 2023 Placer Labs,I
33、nc.|More insights at placer.ai|10they can browse for longer.On the other hand,chains looking to cater to families andchildren may choose to save the costs associated with an extra hour or two ofoperations,since this visitor profile is less likely to visit late at night.Luxury Off-Price Chains Pull A
34、head of Their Full-PriceSister StoresSo far,weve focused on classic off-price brands that sell apparel and accessoriesfrom department stores and DTC brands at a discount.But the off-price segment alsoincludes luxury off-price chains such as Saks OFF 5th and Nordstrom Rack,whichstarted out as outlets
35、 for their full-price sister chains(in this case,Saks Fifth Avenueand Nordstrom,respectively).2023 Placer Labs,Inc.|More insights at placer.ai|11Off-Price Luxury Pulling AheadRecent foot traffic trends indicate that,in the same way that off-price isoutperforming the wider apparel category,luxury off
36、-price chains are also pullingahead of their full-priced sister chains.Comparing monthly visits in 2023 to a January2023 baseline reveals that visit growth to Nordstrom Rack and Saks OFF 5th outpacedvisit growth to Nordstrom and Saks Fifth Avenue,respectively,almost every monththis year.The one exce
37、ption was July,when the Nordstrom Anniversary Sale drovevisit spikes to Nordstrom and highlighted the current appetite for promotions evenamong luxury apparel consumers.Some of the visit trends are due to the full-price chain rightsizing while the off-pricesister chain expands.But the store fleet ad
38、justments along with the foot trafficpatterns also point to the high demand for discounts and value-priced merchandiseat all levels of the income spectrum.2023 Placer Labs,Inc.|More insights at placer.ai|12Different Shopping Journeys for Luxury and Off-Price LuxuryDiving into the shopping journey fo
39、r luxury-offprice consumers provides somecontext for luxury off-prices recent success.When compared with their full-pricedsister brands,luxury off-price chains see a larger share of visitors coming from Shops&Services(our general retail category)or going to Shops&Services after their luxuryoff-price
40、 visit.The relatively casual atmosphere and lower prices of off-price luxury stores may beattracting consumers who are engaging in general shopping and visiting multiplestores in the hopes of finding something that catches their eye.On the other hand,full-priced luxury department stores with their o
41、pulent and pampering atmospheremay draw consumers specifically looking for that experience and are not treatingtheir luxury shopping as part of a larger trip to assorted retailers.2023 Placer Labs,Inc.|More insights at placer.ai|13Off-Prices Consistent StrengthThe off-price segment,with its affordab
42、le prices and thrill of the treasure-hunt,hasremained consistently strong amidst the retail roller coaster of the past years.Andwith some consumers still looking to stretch their budgets and others looking foraffordable luxuries that wont break the bank leading off-price retailers are wellpositioned
43、 to continue to thrive in 2023 and beyond.Key Takeaways1.Off-Price visits are on the rise:Visits to off-price apparel chains took offin2021 and are now back on the rise following a brief lull in 2022.With itsaffordable prices and treasure hunt experience,the off-price segmentoutperformed both the wi
44、der apparel category and the brick-and-mortar retailaverage in H1 2023.2.Off-Price traffic increased the most in the Midwest and Northeast:Off-price visits were up YoY nationwide,with some larger markets such asCalifornia and Texas seeing double-digit YoY visit increases.But the highestvisit increas
45、es went to smaller markets in the Midwest and Northeast,wheretraffic in states such as South Dakota and Vermont rose by more than 20%.3.Store fleets are getting larger and individual venues are attracting morevisits:Off-prices current strength is partially driven by recent expansions Ross,Burlington
46、,and the TJX Chains all opened new stores in recent years.Butthe average number of visits to individual off-price venues also increased,indicating that off-price brands may have even more room to grow.4.Off-Price shoppers are increasingly visiting more than one off-price chain:Cross-visitation data
47、points to a rise in cross-shopping within the off-pricesegment,as consumers look to stretch their apparel budget,splurge onaffordable luxuries,and tap into the thrill of the treasure hunt.In short,thecategory is seeing a significant boost.5.Different off-price chains attract different visitor segmen
48、ts:T.J.Maxx andMarshalls tend to appeal more to suburban families,while Ross and Burlington 2023 Placer Labs,Inc.|More insights at placer.ai|14draw a larger share of urban singles.These differences may also explain whyRoss and Burlington see a larger share of evening visits and why visits to T.J.Max
49、x and Marshalls tend to be slightly shorter.6.Off-Price luxury brands are outperforming their full-price sister chains:Luxury off-price retailers Nordstrom Rack and Saks OFF 5th are also seeingstronger traffic patterns than their full-priced sister chains highlighting theappetite for bargains across the retail apparel spectrum.2023 Placer Labs,Inc.|More insights at placer.ai|15