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how the recession

has impacted consumer shopping habits

2009S H O P P I N G H A B I T S R E P O R T

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table of contents

Introduction .......................................................................................................................................3

1. Key Findings ..................................................................................................................................4

2. Respondent Profle ....................................................................................................................6

Demographic Characteristics ........................................... ........................................... ......................6

Shopper Tpe ........................................... ........................................... ............................................ .......7

Current Financia Situation ................................................................................................................8

Future Financia Situation ...................................................................................................................9

3. Shopping Habits ........................................... ........................................... ................................. 10

Visit Frequenc ....................................... ........................................... ............................................ .... 10

Venues Visited ......................................... ........................................... ............................................ .... 13

Main Shopping Venue ............................................ ........................................... ................................. 15

Changes In Frequenc O Use ......................................... ........................................... ................... 17

Reasons For Cutting Back .......................................... ........................................... .......................... 18

Expected Future Changes .......................................... ........................................... .......................... 19

Changes In Spending ......................................................... ........................................... ................... 20

Retai Expectations/Motivations ...................................... ........................................... ................... 21

Desired Ma Additions ......................................... ........................................... ................................. 22

4. Loyalty Programs ........................................ ........................................... ................................. 24

Participation ..................................... ........................................... ........................................... ............ 24

Shopping Frequenc ..................................... ............................................ ........................................ 25

Reason For Participation ..................................... ........................................... ................................. 26

5. Special Events ....................................... ............................................ ........................................ 27

Event Visitation ....................................... ........................................... ............................................ .... 27

Event Productivit ......................................... ............................................ ........................................ 29

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3

introduction

BACKG ROUN D

Both consumers and businesses have deat with a great dea o uncertaint in 2009. Most o this ear has been marked b

consumers reigning in discretionar spending, whie retaiers and shopping center owners want to know what it wi take to

get consumers shopping again.

Some o the ke questions the industr stakehoders have are: When the econom improves wi consumers return to their

od shopping habits and haunts or have their spending patterns been irreversib atered b the recession? Ater the recession,

where wi the consumer want to shop? And what actors wi infuence their buing decisions?

This stud represents Phase 1 o a quarter tracking stud. The data in this stud wi be used to provide some insight into

the changes in consumer behavior and attitudes over the past ear, as we as providing a benchmark or tracking behavior

and attitudes going orward.

RE S E ARCH OBJE CTIVE S

Ascertainconsumersperceptionregardingtheircurrentnancialsituationandfutureexpectations

Determinecurrentshoppinghabits,measureareasofchangeduringthepast12monthsandexpectationsforthefuture

Understandconsumerinterestinanduseofretailloyaltyprograms

Determineconsumerinterestinanduseofmalleventsandactivities

ME THODOLOG Y

An on-ine surve was conducted with over 2,500 consumers. The surve was administered according to the oowing criteria:

2,063interviewswerecompletedwithUSresidentsand513interviewswerecompletedwithCanadianresidents.The

number o surves competed per state and province was proportiona to the popuation counts or each.

Theinterviewswereconductedwithmenandwomenage18andolder,whowereresponsibleforatleastsomeofthe

appare, git or genera shopping or their househod. Consumers who did not do an shopping or the househod were

not incuded in the stud.

TheinterviewswereconductedfromOctober14toOctober18,2009.Therespondentswererecruitedfromanational

on-ine pane.

Thesurveyhasamarginoferrorofplusorminus2percentagepointsfortheentiresample.FortheUSsample,the

margin o error is pus or minus 2 percentage points, and or the Canadian sampe the margin o error is pus or minus 4percentage points.

ThequestionnaireforthisprojectwasdesignedbyICSC,whileTheResearchShopwasresponsiblefortheproject

management,elding,dataprocessingandpreparingthissummaryanalysis.

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4

1 . KEY F I NDI NGS

FINANCIAl SITUATION & PERCEPTIONS

WhilethemajorityofconsumersinNorthAmericaratedtheircurrentnancialsituationasgood(35%),fair(40%)or

excellent(7%)only18%ratedtheirnancialsituationaspoor.

Consumersaresomewhatoptimisticregardingthenext12months.Over40%believetheirnancialsituationwill

improveoverthenext12months,while47%believeitwillstaythesameandonly11%saytheirsituationwillgetworse.

FinancialperceptionsandexpectationsaresimilarbetweenUSandCanadianshoppers.ResidentsoftheMidwestand

Southregionstendtoreportaweakernancialposition,whileWestresidentsaremostoptimistic.

Consumersage18-44tendtobemoreoptimisticthanthoseage45+.

SHOPPING HABITS

Overthree-fourthsoftheshoppersreportthattheyhavecutbackinsomewayoverthepast12months.Overhalf

reportedcuttingbackonnedining,casualdining,movietheaterattendanceandsalon/spaservices.Between40%-50%

reported cutting back in most retai categories. The categories east ike to be aected were visits to discount stores

and grocer stores, and purchases o necessities.

Shoppersweresomewhatmorelikelytoattributetheirchangeinshoppingbehaviortoprecautionarymeasuresand

concernsingeneral,thantoeconomicreasons(suchasajoblossorwagereduction).

Shoppersperceptionoftheirnancialsituationhadabiggerimpactontheirshoppingbehaviorsthandidtheirincome.

Amongthosewhoratedtheirnancialsituationasexcellentonlyhalfreportedcuttingbackinthelast12months.

Incomparison,75%ofthosewithincomesof$100,000+reportedcuttingback.

TherewerealsosignicantdifferencesbasedongenderandUSversusCanadianshoppers.Althoughmenandwomen

havesimilarnancialperceptionsandexpectations,womenweremuchmorelikelytoreportthattheyhadcutbackon

their shopping. This ma be due to the act that women are tpica responsibe or a arger share o the househod

shopping.

WhileUSandCanadianshoppershadsimilarnancialperceptions,USshoppersweremorereactionary(29%of

Canadiansdidnotcutbackversus19%ofUSshoppers).USshoppersweremorelikelytociteawageorsalary

reduction as the reason or their cut backs.

Canadiansaremoreavidshoppersingeneral,reportinghighervisitfrequencyandvisitingawidervarietyof

shoppingvenues.Themostsignicantdifferenceisintermsofenclosedmallsvisitation.Canadiansreportedvisiting

encosed mas near twice as oten as US shoppers.

While80%ofconsumersreportedcuttingbackoverthelast12months,only40%reportthattheyexpecttoincrease

their shopping behavior when the econom improves. The areas with the greatest ikeihood o increased use were

shopping trips in genera, department store visits and purchase o discretionar goods.

AlthoughUSshoppersweremorelikelytocutback,theywerealsomorelikelytoanticipateareturntoincreased

shopping(44%versus33%ofCanadianshoppers).

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5

lOyAlTy PROGRAMS

Abouthalfoftheshoppersreportthattheybelongtoaloyaltyorrewardsprogramforaretailerorshoppingcenter.

Groceryprogramsarebyfarthemostpopulartypeofretailerprogram(37%),followeddrugstore(19%),department

store(17%),discounter(14%),dining/restaurant(14%)andbookstore(12%).Only2%reportedthattheybelongtoa

ma or shopping center program.

Canadianshoppersreporthigherparticipationinloyaltyprograms(64%versus51%forUS).Thisismainlyduetohigher

participation in drug store, department store and movie theater programs.

Themainreasonforbelongingtoarewardprogramisbecauseofthespecial/extradiscountsgiventorewardmembers

or the rewards earned based on purchases. Gits, reebies, advanced notice o saes and specia access or members are

ar ess important.

SPECIAl EVENTS

Fortypercentofshoppersreporttheyhaveattendedaspecialeventoractivityatashoppingcenterwithinthepast12

months.Anadditional25%indicatethatalthoughtheydidnotattendaspecialeventduringthepast12months,theyare

interested in these tpes o activities and woud ike their shopping center to oer more options.

Themostwidelyattended/populartypesofeventsarefarmersmarkets,craftfairs,andmusicevents/concerts.

Overhalfoftheeventattendeesreportthattheyalsoshoppedormadeafoodpurchaseinthemallwhentheyattended

theirlastspecialevent(58%).

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2 . RES PONDENT PROF I L E

DEMOGRAPHIC CHARACTERISTICS

ThissectionidentiesthekeycharacteristicsofrespondentssurveyedacrosseachoftheICSCregions.Figure2.1compares

thedemographicproletotheUSandCanadiancensusestimates.

Therespondentprolecloselyparallelstheage,incomeandhouseholdcompositionfortheUSandCanada.The18-24age

group is somewhat underrepresented. This is ike due to the requirement that the respondents needed to be responsibeor at east some o the shopping or their househod in order to quai or the stud.

2.1 RESPONDENT PROFILE TABLE

* Source or US demographics: Caritas Site Reports

** Source or Canadian demographics: MapIno Canada

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SHOPPER TyPE

On persons who did at east some o the shopping or their househod were incuded in this surve. Figure 2.2 summarizes

the amount o househod shopping the are responsibe or.

Overall,two-thirdsofthesurveyrespondentsreportedthattheydoallornearlyalloftheshoppingfortheirhousehold.

Thisproportiondifferssignicantlybasedongender.Thevastmajorityofwomenindicatethattheyareresponsiblefor

mostoftheirhouseholdsshopping,whilemaleinvolvementwasmixed.

Signifcant dierences:

Therewasnosignicantdifferencebyregionorincome.Theonlydifferencebyagewasobservedamongthe18-24age

group.Thisagegroupwasmorelikelytodohalf(34%)orlessthanhalf(30%)oftheshoppingfortheirhousehold.

2.2 HOw mucH OF THE APPAREL, gIFT AND HOuSEHOLD SHOPPINg DO yOu DO FOR yOuR FAmILy?

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CURRENT FINANCIAl SITUATION

Consumerswereaskedtoratetheircurrentnancialsituationandwhethertheythinktheirnancialsituationwillchange

overthenext12months.Figure2.3summarizestheirperceptionsregardingtheircurrentnancialsituation.

While most consumers rated their fnancial situation as air or good, the overall tone was somewhat

more negative than positive. Overhalfratedtheirsituationasfairtopoor,whilejustover40%ratedtheirsituation

as good or exceent.

Signifcant dierences:

Notsurprisingly,nancialperceptionsaredirectlyrelatedtoincome.Amongconsumerswhohaveahouseholdincome

of$100,000+,only26%ratedtheirnancialsituationasfairtopoor.Thisgureincreasesasincomedecreases(75%of

thosewithincomeslessthan$50,000ratetheirsituationasfairtopoor).

Agehadamoderateimpactonnancialperceptions.Personsage18-54aremorelikelytoratetheirsituationasfairor

poor(60%+)thanthoseage55+(50%).

Geographiclocationalsohasamoderateimpactonnancialsituation.WhileUSandCanadianshoppershadfairlysimilar

perceptionsregardingtheirnancialsituation,consumerslivingintheMidwestandSoutharemostlikelytoratetheir

nancialsituationasfairtopoor(63%-versus55%inotherregions).

Therewaslittledifferenceinperceptionsbetweenmenandwomen.

2.3 HOw wOuLD yOu RATE yOuR FINANcIAL SITuATION TODAy?

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FUTURE FINANCIAl SITUATION

Figure2.4summarizesconsumerexpectationsregardingtheirfuturenancialsituation.

Consumersaresomewhatoptimisticregardingthenext12months,as40%expecttheirsituationtoimprove,whilehalf

expectittostaythesameandonly10%expectittogetworse.However,theiroptimismissomewhatguardedasthey

aremorelikelytoexpectmodestimprovementsratherthanasignicantchange.

Signifcant dierences:

Futureexpectationsaremorestronglyimpactedbyperceptionsregardingcurrentnancialsituationthanbyactualin-

come. Those who rate their current situation as exceent are aso most ike to expect improvements over the next 12

months(49%versus40%forothers).Amongthosewhoratetheirsituationasfairtopoor,15%expecttheirsituation

to get worse.

Consumersage18-44tendtobemoreoptimisticthanolderconsumers(50%ofthoseage18-44expectnancial

improvementversus35%ofthoseage45+).Futureexpectationsweresimilarbetweenmenandwomen.

USandCanadianexpectationswerefairlysimilar.PersonslivingintheWestregionaremoreoptimisticthanother

regions(48%expectimprovement).

2.4 OvER THE NExT 12 mONTHS, DO yOu THINk yOuR FINANcIAL SITuATION wILL:

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3 . S HOPPI NG HABI TS

VISIT FREQUENCy

Figure 3.1 compares the requenc with which consumers visit a variet o shopping venues. The chart beow shows both

thecategoricalinformation,aswellastheaverageannualnumberofvisitscalculatedfromthisdata(shownintheparenthesis

behindeachbar).

Over three-ourths o the respondents report that they shop at strip centers or enclosed malls. Strip

centers however, generate higher trip requency(with32%visitingstripcentersmorethanonceamonth).

The estimated average number o visits per ear to strip centers is 16.6 versus 10.1 ma visits per ear.

Outletcenters,lifestylecentersanddowntownshoppingareasattractedsimilarvisitationlevels,as60%-70%ofthe

respondents visited each o these shopping destinations. Consumers report an average o 6-7 visits per ear to each

o these venues.

Signifcant dierences:

Consumers perception o their fnancial situation had a stronger impact on shopping visitation and

requency than all other actorsincludinghouseholdincome,ageandgender.Personswhoratedtheirnancial

situation as exceent visited the widest variet o shopping venues and aso reported the most requent trips.

Thechartsandtablesonthefollowingpagesdetaildifferencesbasedongeography,ageandincome.

3.1 HOw OFTEN DO yOu vISIT THE FOLLOwINg TyPES OF SHOPPINg vENuES?

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VISIT FREQUENCy

ShoppingvisitationandfrequencydifferedsignicantlybetweenUSandCanadianresidents.Figures3.2and3.3breakout

shopping requenc b venue or US and Canadian residents.

Canadianshoppersreportmakingmorefrequentshoppingtripsingeneral,thandoUSshoppers.Themostsignicant

differenceisthatCanadiansreportamuchhigheruseofenclosedmalls(withvisitfrequencynearlydoublethatobserved

fortheUSshoppers).Intotal90%ofCanadiansvisitenclosedmalls,withnearly30%visitingmallsmorethanoncea

month.Theyreportanaverageof15.7mallvisitsperyear,versusanaverageof8.7reportedbyUSshoppers).

Canadiansalsoreporthigheruseofdowntownareas,outletcentersandlifestylecenters.

3.2 SHOPPINg FREquENcy FOR uS RESIDENTS

3.3 SHOPPINg FREquENcy FOR cANADIAN RESIDENTS

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VISIT FREQUENCy

Figure3.4summarizestheannualnumberofvisitsconsumersmaketoeachshoppingvenueandhighlightssignicantdifferences

between the ke demographic and attitudina segments.

Signifcant dierences:

Frequencyofvisitisfairlysimilarbyage.Thepersonswhodiffermostarethoseage18-24.Thisagegrouphasabove

average use o encosed mas and downtown areas.

Financialsituationhasabiggerimpactonshoppingbehaviorthandoesincome.Shopperswhodescribetheirnancial

situation as exceent aso report the most requent visits to a shopping venues. Converse, househod incomes under

$35,000reportbelowaveragevisitationofallshoppingvenues(exceptoutletcenters).

Shoppingvisitationandvisitfrequencywassurprisinglysimilarbygender(thismaybebecausemenwhodidnoshopping

wereexcludedfromthisstudy).Theonlydifferenceobservedbygenderisthatmenweremorelikelytovisitdowntown

areas(whichislikelytiedtotheirworkhabits/locations).

3.4 ANNuAL NumBER OF vISITS TO EAcH SHOPPINg vENuE

Bold=Signicantdifference

(By AgE)

(By INcOmE)

(By cuRRENT FINANcIAL SITuATION)

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SHOPPING VENUES VISITED WITHIN lAST 60 DAyS

These consumers were aso asked which shopping venues the visited within the ast 60 das. Figure 3.5 summarizes the

share o consumers visiting each tpe o venue and compares US shoppers versus Canadian shoppers.

Nearly60%oftheshoppersvisitedanenclosedmallorstripcenterwithinthepast60days.Canadianshoppershowever

reported much higher use o encosed mas than did US shoppers.

Between25%-30%ofUSshoppersreportedvisitingoutletcenters,lifestylecenters,ordowntownareas.Canadianshop-

pershadhighervisitationtoallthreeoftheseformats(especiallydowntownareas).

Signifcant dierences: Themaindifferencesbasedongeographyare:Northeastresidentsreportaboveaverageuseofenclosedmalls(61%)

anddowntownareas(27%).TheSouthandWesthavethehighestlifestylevisitation(30%+),whilealargerthanaverage

shareofSouthernresidentsalsoreportshoppingdowntownareas(28%).

Visitationandthetypeofvenueusedvariedsomewhatbyage,incomeandnancialsituation.Thetablesonthefollowing

page summarize these dierences.

3.5 wHIcH OF THE FOLLOwINg SHOPPINg vENuES HAvE yOu vISITED wITHIN THE LAST 60 DAyS?

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SHOPPING VENUES VISITED WITHIN lAST 60 DAyS

Figure 3.6 highights how shopping visitation diers b age, income and geograph.

Signifcant dierences:Recentshoppinghabitsarefairlysimilaramongpersonsage35andolder.Thepersonswhodiffermostarethoseage18-24.

This age group has beow average use o strip centers and ieste centers, and above average use o downtown areas.

Whenitcomestoincome,personswithhouseholdincomesunder$35,000reportbelowaveragevisitationofallshopping

venues. The highest income consumers report especia strong use o encosed mas.

Theonlydifferenceobservedbygenderismenweremorelikelytovisitdowntownareas(32%ofmenversus25%ofwomen).

3.6 wHIcH OF THE FOLLOwINg SHOPPINg vENuES HAvE yOu vISITED wITHIN THE LAST 60 DAyS?

Bold=Signicantdifference

(By AgE)

(By INcOmE)

(By cuRRENT FINANcIAL S ITuATION)

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MAIN SHOPPING VENUE

Consumers were aso asked which ONE shopping venue the use most oten or their househod shopping.

Figure 3.7 summarizes consumer preerences and compares US shoppers versus Canadian shoppers.

ShoppingpreferencesdifferedsignicantlybetweenUSandCanadianshoppers.ForCanadianshoppers,enclosedmalls

arebyfarthemostpreferredshoppingvenue(59%ofCanadianshoppersdomostoftheirshoppingatamall).

PreferencesamongUSshoppersaresplitbetweenenclosedmallsandstripcenters.

Themaindifferencesbasedongeographyare:Northeastresidentsreportaboveaverageuseofenclosedmallsanddown-

town areas. The South and West have the highest ieste visitation, whie Midwest and South residents show a stronger

preerence or strip centers over mas.

3.7 wHIcH ONE TyPE OF SHOPPINg vENuE DO yOu uSE mOST OFTEN FOR ITEmS SucH AS APPAREL, HOuSEHOLD

gOODS AND gIFTS?

Consumerswerealsoaskedoncetherecessionisover,willyoustilldomostofyourshoppingatthesamevenue?

Thevastmajorityofshoppers(76%)indicatedthattheywouldcontinuetodomostoftheirshoppingatthesamevenue

theyarecurrentlyusing(21%wereuncertainandonly4%expectedtoswitchwhentheeconomygetsbetter).

FutureexpectationsweresimilarbetweenUSandCanadianshoppers,andacrossthevariousshoppingvenues.

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MAIN SHOPPING VENUE

Figure 3.8 highights how shopping visitation diers b age, income and geograph.

Signifcant dierences:

Mostpersonsindicatethatenclosedmallsaretheirmainsourceforapparel,householdgoodsandgifts.Theexception

to this is the 35-54 age group. This age group is more ike to do most o their shopping at strip centers rather than mas.

Whenitcomestoincome,personswithhouseholdincomesunder$35,000aremostlikelytocitestripcentersastheir

main shopping venue, whie a other income groups are most ike to re on encosed mas.

3.8 wHIcH ONE TyPE OF SHOPPINg vENuE DO yOu uSE mOST OFTEN FOR ITEmS SucH AS APPAREL, HOuSEHOLD

gOODS AND gIFTS?

Bold=Signicantdifference

(By AgE)

(By INcOmE)

(By cuRRENT FINANcIAL SITuATION)

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CHANGES IN FREQUENCy OF USE

Shoppers were asked i the had changed their shopping habits within the past 12 months. Figure 3.9 summarizes where the

made changes.

Overall,21%oftheshopperssaidtheydidnotcutbackatallduringthelast12months.Theareaswhereshopperswere

most ike to make changes were decreased number o shopping trips in genera, as we as decreased shopping trips to

uxur stores, speciat appare stores, department stores and decreased purchasing o discretionar goods.

Conversely,shoppersweremostlikelytoreportincreaseduseofcouponsanddiscountstores.

Signifcant dierences:

Canadianshopperswereleastlikelytomakechangesoverthepast12months.InnearlyeverycategoryCanadianshoppers

were 10 to 15 percentage points beow US shoppers in reporting that the had decreased their shopping behaviors.

Theshoppersperceptionoftheirnancialsituationhadabiggerimpactontheirbehaviorchangesthandidtheiractual

income.Amongtheshopperswhoratedtheirnancialsituationasexcellent,halfreportedthattheydidnotcutback

atall,versus25%ofthosewhoratedtheirnancialsituationasgood,and10%-15%whoratedtheirsituationasfairto

poor.Thedifferenceinbehaviorbasedonactualincomewaslesssignicant.Only25%ofthosewhoreportedincomes

of$100,000+indicatedtheyhadnotcutback,versus17%ofthosewithincomesoflessthan$35,000.

Womenweremorelikelytoreportdecreasedbehavior(5%-20%higherthanmen).

Therewaslittledifferenceinbehaviorbasedonage,incomeorgeography.

3.9 IN THE PAST 12 mONTHS, HAvE yOu cHANgED yOuR HABITS IN ANy OF THE FOLLOwINg AREAS:

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REASONS FOR CUTTING BACK

Shoppers who had cut back in their shopping habits were asked the reasons wh the cut back. Figure 3.10 summarizes

their comments.

Shoppersweresomewhatmorelikelytoattributetheircutbackstoprecautionarymeasuresorconcerningeneral,than

toajoblossorsalaryreduction.

Signifcant dierences:

AlthoughCanadianshoppersweremorelikelytoreportthattheydidnotmakeacutback(29%versus19%ofUS

shoppers),thereasonstheygaveforcuttingbackweresimilartoUSshoppers.Theonlysignicantdifferencewasthat

US shoppers were more ike to cite a saar or wage reduction as their reason or cutting back.

Personswhoratedtheirnancialsituationaspoorweremostlikelytocutbackbecauseofajoblossorsalary/wage

reduction, whie those who rate their situation as good or air were most ike to cut back as precautionar measure

or because o genera concern.

Reasonsweresimilarbasedongeographiclocation.ThemaindifferenceisthatWestresidentsweremostlikelytocite

lossofjoborsalaryreductionasareasonforcuttingback.

Therewaslittledifferenceinbehaviorbasedonageorincome.

3.10 IF yOu HAvE cuT BAck ON SHOPPINg, wHAT ARE THE REASONS? (BASE: ALL SHOPPERS)

Note:doesnotaddupto100%duetomultipleresponses

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EXPECTED FUTURE CHANGES

Shoppers were aso asked i/how the expected their shopping habits to change when the econom is on an upswing again.

Figure 3.11 summarizes the share o shoppers who expect to increase their use o each categor.

Intotal,40%ofshoppersindicatetheyexpecttoincreasetheirshoppingbehaviorastheeconomyimproves.(However,

80%reportedthattheyareshoppinglessofteninatleastonearea).

Shoppersweremostlikelytoreportexpectedincreasesforshoppingingeneral,departmentstorevisitsanddiscretionary

purchases,whileonly10%expectedtoincreasetheiruseofluxuryorspecialtyapparelstores.

Signifcant dierences:

WhileUSshoppersweremostlikelytoreportcuttingbackontheirshopping,theywerealsomorelikelytoanticipate

increasedshoppingbehaviorswhentheeconomyimproves(44%expectedtoincreaseshoppingversus33%ofCanadian

shoppers).

Althoughwomenweremorelikelytocutbackontheirshopping,menandwomenwereequallylikelytoanticipate

increased shopping when the econom improves.

3.11 wHEN THE EcONOmy IS ON AN uPSwINg, DO yOu ExPEcT ANy cHANgES TO yOuR cuRRENT SHOPPINg

PATTERNS IN THE FOLLOwINg AREAS: (% OF cONSumERS wHO ExPEcT INcREASED uSE)

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CHANGES IN SPENDING

In addition to tracking changes in shopping habits, consumers were aso asked how the had changed their spending habits in

ke consumer categories. Figure 3.12 indicates their spending changes.

Ingeneral,abouthalfoftheshoppersreportedspendinglessineachofthesecategories.Thecategoryleastaffectedwas

groceries, as on one-ourth reported spending ess on these goods.

Signifcant dierences:

Thesamepatternsofsignicantdifferencesappear.USshoppersweremorelikelytocutbackthanCanadianshoppers

(USshoppershada5-10percentagepointdifferenceinmostcategories).

Shopperswithincomeslessthan$35,000weresignicantlymorelikelythanotherincomesgroupstoreducetheir

spending in a categories.

Again,womenweremorelikelythanmentoreportdecreasedspending.

3.12 IN THE LAST 12 mONTHS, HAvE yOu mADE SPENDINg cHANgES IN ANy OF THE FOLLOwINg AREAS:

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RETAIl EXPECTATIONS/MOTIVATION

Shoppers were given a ist o attributes and asked to rate the importance o each in terms o determining where the do their

househod shopping. Figure 3.13 summarizes the importance o each attribute.

Pricerankedasthesinglemostimportantattribute,withmerchandiseselectionandgoodcustomerserviceranking

second Convenience actors such as ocation and parking ranked third, with avaiabiit o dining or entertainment

deemed as being east important.

Signifcant dierences:

USandCanadianshoppersplacedasimilarlevelofimportanceoneachattribute.Theonlyexceptionislowprice

whichwasmuchmoreimportanttoUSshoppers(45%critical)thanCanadianshoppers(33%critical).

Themostsignicantdifferenceswerebasedonshopperageandnancialsituation.Personswhoratetheircurrent

nancialsituationasexcellent,putlessimportanceonpriceandahigherlevelofimportanceontertiaryattributessuchas

parking,dining,andentertainment.Personsage55+putamuchhigherlevelofimportanceonparkingthandoyounger

shoppers. Converse, ounger shoppers put a higher eve o importance on entertainment.

Therewaslittledifferenceinimportanceratingsbasedongeographicregion,genderorincome.

3.13 HOw ImPORTANT ARE THE FOLLOwINg ATTRIBuTES IN DETERmININg wHERE yOu SHOP FOR ITEmS SucH AS

APPAREL, HOmE gOODS AND gIFTS?

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DESIRED MAll ADDITIONS

Figure 3.14 shows tpes o retaiers or services shoppers woud ike to see added to their oca ma.

Themostwidelyrequestedadditionwasmorediscountoptions.Nearlyhalfoftheshoppersindicatedtheywouldlike

toseemorediscounters(suchasTarget,Wal-Mart,Kmart,TJMaxx)attheirlocalmall.Theothertoprequestsinclude

more dining options, grocer, book stores, department stores and entertainment/movies.

Justover20%indicatedtheyweresatisedwiththecurrentofferingsattheirlocalmallanddidnotrequestanyadditions.

3.14 wHAT TyPE OF RETAILERS OR SERvIcES wOuLD yOu LIkE TO SEE mORE OF IN yOuR LOcAL mALL?

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DESIRED MAll ADDITIONS

The oowing tabes summarize the top requests b gender, age and income. There were ver ew dierences between USand Canadian shoppers or b region, so these groups are not incuded in the summar tabes.

Signifcant dierences:

Whilepersonswithmoderateincomesaremostlikelytorequestdiscounters,thisretailcategorytopsthelistfornearly

a customer segments. Grocers aso have a stronger appea among moderate income consumers than among those with

higher incomes. Persons age 18-24 and those with higher incomes requested the widest variet o ma additions.Requestsbetweenmenandwomenweresurprisinglysimilar.Thebiggestdifferencesarethatmenaremuchmorelikely

to request eectronic or sporting good stores, whie women are more ike to request home stores.

3.15 wHAT TyPE OF RETAILERS OR SERvIcES wOuLD yOu LIkE TO SEE mORE OF IN yOuR LOcAL mALL?

(By AgE)

(By INcOmE)

(By gENDER)

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4 . LOYALTY PROG RAM S

PARTICIPATION IN lOyAlTy PROGRAMS

Shoppers were asked about their participation in retaier and ma oat programs. Figure 4.1 shows the share o

shoppers who participate in a oat program, overa and b region.

About hal o the shoppers report that they belong to a loyalty or rewards program or a retailer or

shopping center.

Signifcant Dierences:

Participationwasfairlyconsistentacrossthevariousageandincomegroups.

Themostsignicantdifferenceswerebasedongeographyandgender.Canadianshoppersweremuchmorelikelyto

beong to these tpes o reward programs than were US shoppers. In addition, participation is strongest among

shoppers iving in the Northeast and West.

Womenweremorelikelytoparticipateintheserewardprogramsthanmen(57%versus45%ofmen).

4.1 DO yOu PARTIcIPATE IN ANy RETAILER OR SHOPPINg cENTER LOyALTy/AFFINITy PROgRAmS?

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SHOPPING FREQUENCy--DETAIl

Figure 4.2 summarizes what tpes o retaier programs consumers beong to.

Themostwidelyutilizedretailerloyaltyprogramsarethoseoperatedbygrocers.Nearly40%ofshoppersbelongtoa

grocer oat program.

Otherpopularretailloyaltyprogramsattractingmorethan10%oftheshoppersincludedrugstore,departmentstore,

discounter,restaurantandbookstoreprograms.Only2%reportedbelongingtoashoppingcenterloyaltyprogram.

Signifcant dierences:

ThestrongerCanadianparticipationismainlyduetostrongparticipationindrugstore,departmentstoreandmovie

theater programs. Converse, US shoppers have above average participation in restaurant programs.

4.2 wHAT TyPES OF RETAILER LOyALTy PROgRAmS DO yOu PARTIcIPATE IN?

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REASON FOR PARTICIPATION

The tabe beow summarizes wh shoppers beong to these oat programs.

Themainreasonforparticipatinginretailerloyaltyprogramsistoreceivespecial/extradiscountsortoearnrewards

basedonthecustomerspurchases.

Secondarymotivatorsarespecialgiftsorfreebies(eitheratsign-uporthroughouttheprogram)orreceivingadvanced

noticeofsales.Theleastimportantbenetwasgainingaccesstospecialmember-onlyevents.

4.3 wHAT ARE THE mAIN REASONS yOu BELONg TO THESE LOyALTy PROgRAmS?

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5 . S P E C I A L E V E N T S

EVENT VISITATION

Shoppers were aso asked about their use o specia events at encosed mas and open-air shopping centers. The

chart beow summarizes past use o these events, as we as their eve o interest in participating in the uture.

Forty percent o the shoppers report that they have attended special events at a mall within the past 12

months. Howeveranadditional25%saidthatalthoughtheydidnotattendanyeventsduringthepast12months,they

woud ike to see more options at their oca ma. One-third o the shoppers said the did not have an interest in

events and had not attended an in the past 12 months.

Signifcant Dierences:

EventuseandinterestwassimilarbetweenUSandCanadianshoppers,andbygeographicregion.

Eventusewasalsosurprisinglysimilarbasedongender,ageandincome.Themostsignicantdifferenceisthatwhilethe

shareofmenandwomenwhohaveattendedaneventissimilar(41%each),womenwhohavenotattendedaneventare

morelikelytoindicatefutureinterest(27%)thanmen(20%).

5.1 EvENT uSE AND INTEREST

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EVENT VISITATION

The chart beow summarizes what tpes o events the have visited at shopping centers during the previous 12

months and what tpe o events the woud ike to see more o.

Farmersmarketswerethemostwidelyattendedevents,followedbycraftfairs,andmusicevents/concerts.Theseevents

aso topped consumer requests or what the woud ike to see more o.

Signifcant dierences:

Althoughthelevelofparticipationinspecialeventsdidnotdifferbasedondemographics,thetypeofeventsattended

does var.

Farmersmarketshavethebroadestappeal,attractingbothmenandwomen,aswellasshoppersfromallincomegroups

andaboveaverageattendanceamongthoseage55+.

Craftfairstendtoappealmorestronglytowomenandshoppersage45+.Musicevents/concerts,fashion/styleevents,

adies night out and ceebrit events tend to appea to ounger consumers.

Artshows,charityeventsandmusic/concertstendtoappealtotheupperincomeconsumers.

Amongtheshopperswhohavechildren,about20%attendedakidsevent(17%holidayeventand11%otherkidsevent),

andone-thirdoftheparentswouldliketoseemorechildrensevents.

5.2 IN THE PAST 12 mONTHS, wHIcH OF THE FOLLOwINg TyPES OF AcTIvITIES/SPEcIAL EvENTS HAvE yOu

ATTENDED AT AN ENcLOSED mALL OR OuTDOOR SHOPPINg cENTER? AND wHAT TyPE OF EvENTS wOuLD LIkE

TO SEE mORE OF AT yOuR LOcAL SHOPPINg cENTER?

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EVENT PRODUCTIVITy

Oneofthemainobjectivesofhostingspecialeventsistonotonlydrawtrafctotheshoppingcenter,buttoconvertthe

event trafc into sales for the shopping centers stores and restaurants.Tomeasure the level of event cross-over and

conversion, shoppers were asked to reca the ast event the attended and whether the aso shopped in the ma. Figure 5.3

summarizes the behavior o shoppers who attend events.

The majority o event attendees indicated that they visited other areas o the shopping center in addition

to attending the special event.

Personsattendingmusicevents/concerts,farmersmarketsorcharityeventswereleastlikelytovisitotherareasofthe

shoppingcenter(40%+onlyvisitedtheevent).Thisislikelyduetothefactthatmostofthesetypesofeventsareheld

outside the shopping center or ater hours.

Consumersattendingartshowsorfashion/styleeventsweremostlikelytocross-shop.

Signifcant dierences:

TherewasnosignicantdifferencebetweenUSandCanadianshoppers,andlittledifferencebasedongeographicregions

ordemographicfactors.Themostsignicantdifferenceisthatpersonsage55+aremostlikelytovisittheeventonlyand

not shop other areas o the center.

5.3 THINkINg ABOuT THE mOST REcENT SPEcIAL EvENT yOu ATTENDED AT A SHOPPINg cENTER, DID yOu ATTEND

ONLy THE EvENT OR vISIT OTHER AREAS OF THE cENTER AS wELL? (BASE: THOSE wHO ATTENDED AN EvENT IN

LAST 12 mONTHS)

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