The 2013 holiday shopping season ─ the annual make or break point for many retailers nationwide ─ is over and the returns are in for several of the biggest retailers in the U.S. Only three retailers retained 70% or more of their respective customer bases in the past year, according to America Research Group and Inmar’s retail report.
What’s more, the report shows that 12 retailers gave up more than 40% of their shoppers in the past year. America’s Research Group is one of the nation’s foremost consumer research and strategic marketing firms.
The report focused was derived from 1,000 consumer interviews conducted via phone between Dec. 20 and Dec. 22, 2013. Of all retailers, only three retained 70% or more of the customer base they acquired during the past year.
Of the 24 retailers surveyed, Walmart topped the list at 88.1% (customer retention rate compared to holiday 2012) followed by Dollar Tree at 80.4%, and Target at 72.1%. The bottom five retailers on this year’s list are Lowe’s (56%), Toys R Us (53.1%), Marshalls (50%), Costco (49.4%), and Barnes & Noble (43.9%).
“The key to retailing success is retaining at least 70% or more customer base,” Britt Beemer, Chairman and CEO of America’s Research Group, said in the report. “The research shows that most retailers did a lousy job of keeping their customers home this year. In fact, only two, Walmart and Dollar Tree, did an exceptional job this season.”
In previous years, Beemer said seven or more retailers performed very well.
“If you’re losing 50% of your customers, you’re in grave trouble and your long-term future is doubtful,” she added. “Two-thirds of retailers got failing grades this year and had better seriously review their merchandising and advertising strategies if they want to stay in the game.”
Here is America’s Research Group’s complete ranking of retail winners and losers during the 2013 holiday shopping season (percentages represent retained customer base):
TOP FIVE
1 WALMART - 88.1%
2 DOLLAR TREE - 80.4%
3 TARGET - 72.1%
4 WALGREENS - 69.3%
5 MACY’S - 68.2%
6 SEARS - 67.8%
7 BIG LOTS - 66.3%
8 KOHL’S - 64.5%
9 ROSS - 64.0%
10 CVS - 63.4%
11 J.C. PENNEY - 61.4%
11 AMAZON - 61.4%
13 THE GAP - 59.6%
14 SAM’S CLUB - 58.8%
15 T.J. MAXX - 58.4%
15 HOME DEPOT - 58.4%
17 AMERICAN EAGLE - 57.9%
18 OLD NAVY - 57.2%
19 BEST BUY - 56.6%
BOTTOM FIVE
20 LOWE’S - 56.0%
21 TOYS R US - 53.1%
22 MARSHALLS - 50.0%
23 COSTCO - 49.4%
24 BARNES & NOBLE - 43.9%