Satisfaction up for discount department stores

New research from Roy Morgan shows that in the 12 months to May 2018, 87.3% of customers of discount department stores were satisfied, an increase of 0.6% points over the year. The biggest improvements came from Target Country which rose 3.3% points year on year to 84.8% and Big W which increased by 1.0% points to 86.6%.

These are the latest results from Roy Morgan’s ‘Discount Department Store Satisfaction Report’ which is based on in-depth personal interviews conducted face-to-face with over 50,000 Australians per annum in their own homes, including over 9,000 interviews with people who have shopped at a discount department store in the last four weeks.

Kmart and Target the best performers

The highest customer satisfaction ratings among discount department stores over the year were for Kmart and Target, both currently on 88.2%. Kmart improved by 0.7% points over the last 12 months and Target was up by 0.6% points. In third place was Costco with 87.0%, followed by Big W (86.6%), Best & Less (86.0%), Target Country (84.8%) and Harris Scarfe (83.3%). The only stores to decline in satisfaction over the last 12 months were Harris Scarfe (down 5.2% points) and Costco (down 2.1% points).

Discount Department Store Customer Satisfaction

Source: Roy Morgan Single Source (Australia), 12 months ended May 2017, n = 50,026; 12 months ended May 2018, n=50,046.
Base: Australians 14+ who purchased from a discount department store in the last four weeks, 12 months to May 2017, n=9,070 and 12 months to May 2018, n=9,805.

Norman Morris, Industry Communications Director, Roy Morgan says:

“Like all retailers, discount department stores are facing increasing competition in a difficult market. They have many competitors, not only from other discount department stores but from the big two department stores, specialist retailers and new online players such as Amazon. In this highly competitive environment it is a positive outcome that over the last 12 months, discount department stores have been able to increase customer satisfaction. This is in contrast to Myer and David Jones with a combined satisfaction rating currently of 85.9%, having fallen by 1.9% points over the last year, to now have a lower rating than the 87.3% for discount department stores.

“The data used here is only a small part of what Roy Morgan has been collecting and analysing on a wide range of retailers and their customers for many years. As a result we have a database covering all major retail sectors and brands which is uniquely suited to tracking and understanding consumer behaviour and attitudes in this fast changing industry. To understand more about the retail market, ask Roy Morgan.”