OC&C Announces Results of Survey Ranking Largest U.S. Retailers

As U.S. Enters Holiday Shopping Season, Survey Provides Insight into Consumer Perceptions on Value, Service and Quality

Amazon.com Comes Out on Top

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Oct 04, 2010, 08:30 ET

NEW YORK, Oct. 4 /PRNewswire/ -- OC&C Strategy Consultants, a global strategy consulting firm, announced today the results of its 2010 consumer survey of leading U.S. retailers. The study, the OC&C Proposition Strength Index (the "Index"), surveyed over 2,700 U.S. consumers in an effort to understand consumer sentiment toward 50 of the country's leading retailers.

The Index rates how consumers view core elements of a retailer's value proposition – such as Value for Money, Customer Service, Product Selection and Product Quality. The results will likely provide a preview on how these companies will fare as the U.S. enters the holiday shopping season and retailers continue to find themselves in intense competition for consumers' limited discretionary spending.

The Index found that the top-five U.S. retailers as rated by consumers are:

Amazon.com
Barnes & Noble
Costco
Lowe's
Apple Store

Online retailer Amazon.com ranked first in the Index overall and dominated most of the proposition dimensions rated by each consumer. Amazon scored number one in the following categories: Product Breadth, "Products That Are Suited To Me," Value for Money, and Trust. In all other categories relevant to non-fashion online retail, namely Price, Product Quality and Service, Amazon placed in the top three.

While Amazon topped the overall survey, other retailers emerged stronger in specific areas. For example, the Apple Store placed first for Product Quality, Service and Store Look & Feel – indicating that current customers recognize and appreciate Apple's unique approach to brick and mortar retailing. In terms of price perception, Dollar Tree ranked first in the category of Low Price, edging out the country's largest discount retailer, Walmart.

"The economy has had varying degrees of impact on the top performers in our survey," said Keri Aivazis, partner, OC&C Strategy Consultants. "Broadly speaking, the retailers at the top of our Index maintain a strong competitive position and are poised to reap the benefits as discretionary spending behaviors return. For example, Amazon's dominant position in our Index is consistent with its growth through the recent economic crisis. Amazon is reaping the benefits of a loyal and growing customer base which now turns to the retailer more frequently and for a diverse set of purchases."

Other findings from the 2010 OC&C Proposition Strength Index include:

•	Universally popular retailers have earned strong consumer respect
	Amazon, Best Buy, Costco and Toys "R" Us were all consistently ranked near the top of the Index across gender, age and income variations. The consistent positioning of these retailers is a reflection of their success in creating a proposition and brand identity which is relevant and appealing to one of the most demographically diverse customer bases in the world.
•	Trust matters
	The results indicate that consumer trust in a retailer is most closely correlated to their overall opinion of the proposition that the retailer is putting forth. All of the top-five retailers in the overall ranking placed in the top-five on Trust.
•	Demographic differences highlight potential untapped markets
	According to the Index, age difference, versus household income and gender, provided the strongest demographic polarization of the survey's results. As retailers look for top-line growth opportunities, they need to explore strategies for expanding their customer base beyond their traditional demographic core. iTunes for instance, appears in the top-five among the over-55 age group, indicating an important demographic trend for online music.
•	View of non-customers offers insight into reputation
	The perceptions of non-active customers about certain retailers provide insights into the strength of retail brands. Walmart, for example, placed solidly in the top 10 by active customers, but finished near the bottom among non-active shoppers. In contrast, retailers like Barnes &Noble, Lowe's, Best Buy, and Toys "R" Us ranked in the top 10 by both active and non-active customers. These companies will likely have an easier time attracting new customers when discretionary spending eases and the right buying occasion occurs.

OC&C's Proposition Strength Index was formed from surveys of more than 2,700 U.S. consumers. The Index results were based on responses from consumers who had all visited or bought from the retailers they rated in the past three months. For each retailer, participants gave an overall rating from one to five stars, and then gave star ratings for different core elements of the retailer's proposition including Value for Money, Customer Service, Trust, Product Selection and Product Quality. This five-star scoring was then turned into an index of between 0-100 to give each retailer its combined scores.

A presentation containing a more detailed overview of the data and survey methodology is available by emailing [email protected].

About OC&C

Founded in 1987, OC&C is a leading global strategy consulting firm that brings clear thinking to the most complex issues facing today's management teams. With 13 offices across 9 countries, OC&C's client roster includes some of the world's most respected companies throughout the retail, consumer goods, media, industrial, private equity, financial and business services sectors. Please visit www.occstrategy.com for more information.

SOURCE OC&C Strategy Consultants