Study also finds consumers, ages 45 and above, and older Millennials increased their share of off-price purchases.
Representing nearly two-thirds of all consumers, off-price buyers also represent 75 percent of apparel purchases across all retail channels, according to The NPD Group’s receipt mining service, Checkout Tracking.
Checkout Training, which analyzes receipts and follows consumer purchasing behavior over time, also found that off-price apparel buyers shop at multiple off-price retailers and other retail outlets.
Consumers, ages 45 and above, represent more than half of all off-price apparel buyers. This age group, in addition to older Millennials, ages 25 to 34, which represent 16 percent of off-price apparel buyers, both increased their share of off-price purchases.
“Off-price retailers are resonating with fashion and cost-conscious consumers alike, and are stealing department store business for good reason,” says Marshal Cohen, chief industry analyst, The NPD Group. “Off-price is second only to the online channel in terms of growth rate.”
Additionally, visits to off-price retail stores–whether anything was purchased or not–increased by 4 percent in the year ending April 2016 compared to the same period last year. During the same period, off-price retailers converted 50 percent of their locations to a purchase, according to NPD’s Shopper Insights Service, which tracks where and how consumers shop including traffic, shopping conversion, demographics and more.
“Consumers are clearly looking for better deals and they know if they shop at an off-price retailer they will get them,” says Cohen. “Apparel shoppers are finding just what they want at off-price retailers at the right time and the at the right place, and that isn’t always the case with department stores.”