Let’s face it, marketers: we live in an era of continual transformation when it comes to consumer shopping behaviors. In the midst of rising interest rates for businesses and the widespread adoption of remote work, retailers are grappling with the repercussions of shifting consumer behaviors, especially managing dwindling foot traffic, leading to permanent closures for the unlucky few. Yes, the impact on the retail industry is undeniable, but there’s still a world of opportunity waiting for savvy marketing pros like you!
According to famed telephone inventor Alexander Graham Bell, “When one door closes, another opens.” Retail is no exception. When a retailer shuts its doors, it doesn’t mean the foot traffic simply vanishes. Those customers, seeking to fulfill their purchasing needs, will find their way to other places.
For example, after Bed Bath & Beyond declared bankruptcy and began widespread store closures, their customers began to steer towards the competition. According to GroundTruth data, On the Saturday (4/29) after The Container Store and Big Lots announced they were accepting Bed Bath & Beyond coupons, Big Lots saw a 66% increase in foot traffic and The Container Store saw an 83% increase in foot traffic — 40% higher than typical foot traffic the previous 3 Saturdays. In total, the brands that won over wandering Bed Bath & Beyond shoppers were Walmart, Target, Walgreens, CVS Pharmacy, and Dollar Tree.
So, as marketers, how should you react when a competitor’s store closes their doors? Here’s a few tips on how to make one retailer’s loss your brand’s gain!
Don’t Discount the Value of Discount Marketing
As consumers continue to tighten their purse strings this year, the demand for additional discount and off-price store options is on the rise. So, to drive your fallen competitor’s customers to your brand’s doorstep, it’s time to cater to their thrifty needs! GroundTruth research reveals an interesting trend: 61% of Bed Bath & Beyond visitors also frequent Walmart Supercenter, highlighting shoppers’ quest for budget-friendly finds. We’re also witnessing a surge of new off-price and discount stores opening doors in 2023. In fact, these stores experienced a 10% boost in driving foot traffic from December 2022 to January 2023. Catch the discount marketing wave — affordability is driving consumers to your business!
Seize Key Seasonal Moments
What’s another way to transform a retailer’s setback into your marketing advantage? Capitalize on special seasonal moments! By crafting strategic tactics and engaging campaigns that tap into the excitement of seasonal shopping days, your brand can grab the attention of your collapsed rival’s customers, enticing them to flock to your store and prolong their shopping experience. GroundTruth research uncovered the key holidays that witness a significant surge in foot traffic include Black Friday (79%), Winter Holidays (64%), Valentine’s Day (53%), and Memorial Day Weekend (51%). So, get in the festive spirit and leverage the power of seasonal celebrations.
Embrace the Byte and Brick Balance
In an increasingly interconnected world, the secret to winning over the masses lies in the hands of marketers who understand how consumers navigate the digital and physical shopping landscape. While it may be tempting for some to focus solely on their online presence, the crucial element here is finding the right balance. Although it seems like everyone is shopping online, the vast majority of retail sales actually start and end in-store. In fact, according to research by GroundTruth, not only do 56% of shoppers visit a store before making a purchase online but also 85% of retail sales occur in stores. So, as a savvy marketer, embracing this harmony between the e-world and real world is the key to driving foot traffic from closed stores and achieving brand success.
Don’t find yourself unprepared for a rival’s fallout! Through leveraging discount deals, and utilizing discount marketing opportunities, including seasonal campaigns in your marketing plans, and considering the relationship of your online and offline presence, you can win over your competitions’ following. To the victor goes the spoils, marketers!
Looking to capture your competitor’s audience and drive them straight to your doorstep? GroundTruth is here to provide you with invaluable insights into real-world behaviors, positioning your business for success in winning over shoppers. With our data-driven approach, you’ll gain a deeper understanding of consumer behaviors that can truly make a difference in achieving real-world business results. Don’t miss out on the opportunity to utilize consumer insights in your next marketing campaign. Get in touch with us today!
