Survey says shoppers favor department stores
By Andrew Gomes
Advertiser Staff Writer
Hawai'i residents may love the value of shopping at giant discount stores, but they still visit department and specialty stores more often, according to a new survey.
The study, by local consulting firm SMS Research, showed that consumers most often rely on department or specialty stores for 20 out of 25 major merchandise categories, including clothing, jewelry, appliances, electronics and auto parts.
Discount stores were not the primary outlet for any of the categories, but their growing market share has been dramatic over the past 10 years, according to Hersh Singer, SMS chairman.
The survey was based on where people shop, not on how much they spend at different types of stores, leading some industry observers to question the message of survey results that suggest business at department stores is busier than at discount chains.
"It seems to me this is not what's trending nationally if you look at the popularity of Wal-Mart," said Carol Pregill, executive director of the Retail Merchants of Hawaii trade association.
"You go to Costco, and you go there twice a month and stock up on stuff," she said. "But if you go to a department store or the mall every weekend, maybe you pick up a present or a few items. You would be there more often as opposed to spending more."
Retail consultant Stephany Sofos said she would be surprised if Hawai'i shoppers buy more from department stores than from big-box retailers, though she agreed with the survey results that residents shop more often at department and specialty stores because of convenience.
"The first thing with shoppers is convenience and the second thing is pricing," she said. "But if given the opportunity that value retailing is within a convenient area, nine out of 10 will go to the value retailer."
The survey, which excluded shopping for food and automobiles, concluded that discount warehouse stores such as Costco, Wal-Mart and Home Depot have significantly altered shopping patterns, especially for smaller retailers of computers, electronics, furniture, hardware and appliances.
The trend, SMS said, will continue to change shopping behaviors with the addition of more stores such as a Wal-Mart and Sam's Club under construction in the center of Honolulu.
SMS also concluded that Internet-based shopping is still relatively minor with the exception of computers and magazines. Factory outlets also have relatively little impact on the market, though they are popular for shoppers of teen clothing.
When shopping for all merchandise categories, 23 percent of shoppers visited department stores, followed by 20 percent who shopped at specialty stores. That compared with 17 percent who shopped at smaller discount retailers, and 13 percent who went to discount warehouses.
The survey also found 27 percent of residents shopped for electronics at department stores, followed by discount warehouses at 23 percent and specialty stores at 18 percent.
Department stores and smaller discount retailers tied as the primary outlet for toy and game shopping at 20 percent, followed by specialty stores at 19 percent, the survey said.
Among other survey findings:
• Residents still shop at drug stores for camera and photo equipment more than at discount retailers or department stores by 6 or 7 percentage points.
• Nearly two-thirds of consumers shop for jewelry at specialty or department stores.
• Shoppers equally visited specialty stores and smaller discount stores for garden supplies.
The survey, conducted in the first three months of the year, was based on about 2,500 random interviews from a sample of statewide residents who were 18 years or older and statistically balanced to reflect the state's population based on variables such as income, age and island of residence. The survey's margin of error was less than 1 percent, SMS said.
Reach Andrew Gomes at agomes@honoluluadvertiser.com or 525-8065.
• • •
