• by Jack Loechner , Staff Writer @mp_research, February 2, 2005

Customer Loyalty Doesn't Guarantee Retail Exclusivity

According to a recent analysis of customers from the BIGresearch's December Consumer Intentions and Actions survey, "The idea of customer loyalty, where consumers shop exclusively at a particular retail store, ceased to exist long ago," said Gary Drenik of BIGresearch. Loyalty has been replaced by cross shopping. Your 'customers' are also your competitor's customers," he said.

The report shows that while 11.6 million consumers say they shop most often for women's clothing at JC Penney, 8 million of their best women's clothing customers also shop most often at Wal-Mart for some other merchandise category. 69% of JC Penney's best women's clothing customers have a relationship with Wal-Mart and could be at risk particularly if Wal-Mart refines their apparel merchandise selection.

Other leading retailers who share a majority of their best customers with Wal-Mart include:

		Percent of best customers shared with Wal-Mart
Shoes:	Payless	71%
Electronics:	Best Buy	62%
Linens & Bedding:	Bed, Bath & Beyond	54%
Home Improvement	Home Depot	64%
Prescriptions:	Walgreens	71%
Groceries:	Kroger	65%

The report "When Customers Cross Shop" examines competitive cross shopping for 12 lines of merchandise including:
Women's Clothing, Men's Clothing, Children's Clothing, Children's Toys, Shoes, Electronics, Major Appliances, Linens and Bedding, Home Improvement/Hardware, Prescription Drugs, Groceries andHealth & Beauty Aids.

The complete report may be purchased from BIGresearch.