For our first report of 2019, we wanted to get a closer look at a highly sought after consumer segment for retail stores - Deal Seekers. While Retailers may have insights into their own customers, there's more to the saving-savvy deal seeker than just coupon clipping when it comes to shopping behavior and interests. Most traditional retailers may already be targeting Deal Seekers in some way, but there is plenty of untapped potential and they definitely shouldn't be considered an afterthought.
As it turns out, Deal Seekers are very focused on home improvement. They enjoy having their home reflect their personality, while considering functionality the most important quality when shopping for apparel. Big discount department stores like Target and Walmart are undoubtedly high on the list for any consumer, but home improvement stores like Home Depot and Lowe's are also in the top 5 stores for Deal Seekers. Although Deal Seekers aren't as fashion-forward, this still leaves a lot of opportunity for retail brands (& grocery chains) to expand their Deal Seeker market share - for some, like Marshalls and Old Navy, there's the potential to even double Deal Seekers.
In our report, we also take a look at the best way for these brands to reach and capture Deal Seekers. Shopping for home improvement items is definitely more of an in-store activity; so while Deal Seekers head out to stores for what really interest them, they tend to shop online for their apparel and other items. From beauty products to pet care goods, they rely on the recent popularity of online retail subscriptions to get everything else they need. Taking a cue from disruptors in the retail subscription trend (such as Stitch Fix), traditional apparel retailers could attract more Deal Seekers by offering new, low-effort shopping options like a subscription service. In several instances - explained further in the report - retailers can more than DOUBLE their base of Deal Seeking customers, given what we know about their attitudes and habits. It's just a matter of taking Deal Seekers seriously, and finding ways to fit into their convenience-focused lifestyle.
You can download the full report with complete analysis here.