InMarket Report: Walmart Leads Retailers in Customer Loyalty
A new report from InMarket has identified the top 10 retailers in the second quarter based on loyalty – average return visits per customer. Walmart received the highest score for customer loyalty, in part because of its massive footprint within 10 miles of 90% of the US population.
Walmart earned a loyalty score of 3.22, much better than the 1.33 average for the retail industry.
As the U.S. economy fully reopened, a rise in concerns over COVID-19 Delta variant cases weighed on loyalty readings which were down sharply from the first quarter of the year. Walmart retained its top spot in the second quarter and InMarket Researchers said the retail giant’s omnichannel strategy has served it well during the pandemic and the recent surge in cases.
Analysts said Walmart has also established price differentials against some of its major competitors and, due to its large scale, has done a better job than most fast-moving consumables stocks that are on offer. generally shorter. The report said retailer Fred Meyer also showed resilience in the second quarter, edging out other retailers to take second place. Kroger-owned Fred Meyer is also being recognized for its efforts to entice consumers to get vaccinated at its premises with a top prize of $1 million for five winners and free races for a year. Fred Meyer scored 2.62 on the Loyalty Chart for the quarter ending June 30.
Midwestern grocery giant Meijer was third on the loyalty chart at 2.58 and Target was fourth with a score of 2.14. InMarket said there were no surprises at the top 4 retailers except that Fred Meyer moved his game up from fifth to second place from Q1 to Q2. Nordstom was the only department store to make the top 10 with a loyalty rating of 1.73 for the quarter ending June 30.
Lowe’s and The Home Depot also saw higher than average repeat visits, with the home improvement chains each spending more than $1 billion to upgrade technology, expand distribution networks and further expand omnichannel offerings. such as curbside pickup and delivery to attract more regular consumers. Lowe’s recorded a 25.9% increase in consolidated comparable sales and Home Depot recorded a 31% increase in comparable sales over the same quarter a year earlier. Lowe’s had a loyalty rating of 2.04 and The Home Depot was sixth with a rating of 2.03.
Wholesale Clubs Costco and Sam’s Club also have a loyal following due to their membership models. Costco had a second quarter loyalty rating of 1.93 and Sam’s Club’s rating was 1.88. InMarket said value appears to be a priority for consumers as warehouse clubs increase memberships. Costco dues revenue increased 10.6% to $901 million, total sales increased 21.7% and same store sales increased 13.8%.
Sam’s Club reported triple-digit growth in curbside orders, an 8.7% increase in comparable sales and a 12.9% increase in member revenue – the strongest growth in 6 months. Sam’s also added 200 national brands like Beyond Meat, Casper and Kola, improved its contactless technology advancements like Scan & Go and remodeled 56 stores. Despite all these efforts, Dollar General edged out Sam’s Club for 8th place on the list with a loyalty rating of 1.92.
Point-of-sale-centric retailers like Jockey, OshKosh and Saks Off 5th each had lower loyalty scores during the period. Bass Pro Shops also saw lower loyalty scores, which InMarket says may be related to a change in how returns are processed directly through fulfillment centers rather than in stores. The specialty retailer said yields were up 20%, representing less store traffic and missed opportunities to capture impulse purchases.