Tuesday, April 24th, 2012
Over the last two years, Kmart’s ‘Low Prices’ message has gained considerable traction among consumers with a 9% point increase (to 54%) in the perception that they are associated with low prices, These are the latest findings from the Roy Morgan Research Retail Store Survey.
Between February 2010 and 2012, Kmart was the only discount store to improve its association with having ‘low prices’, with a  9% point increase to 54%, making it equal to Big W and well ahead of Target (35%).

‘Low prices’ association with Discount Stores

Source: Roy Morgan Single Source Sept 2009 - Feb 2010, n=8443, Sept 2011 – Feb 2012, n=8744.

While Kmart and Big W are winning the war for ‘low prices’, Target is comfortably ahead of both Kmart and Big W for being associated with having ‘good quality products’. However, this has dropped for all three discount stores over the last two years.

‘Good quality products’ associated with Discount Stores

Source: Roy Morgan Single Source Sept 2009 - Feb 2010, n=8443, Sept 2011 – Feb 2012, n=8744.

Norman Morris, Industry Communications Director, Roy Morgan Research, says:
“It’s evident that Kmart’s advertising and reduced prices have had the desired effect in lifting perception of them as a discount retailer, and raising it to that of rival Big W. This increase in price association over the last two years is also complimented by an increase in visitation to Kmart, with Roy Morgan Single Source revealing that annually Kmart has increased the number of customer purchase occasions by 12%. This is a good success story for Kmart at a time when most traditional retailers are losing customers.

"What is also apparent is a decline for all three retailers in perception for stocking ‘Good quality products’. This is an area that Target has historically been strongly associated with, and for a long time been the differentiator that positions Target away from Kmart and Big W. With recent advertising placing a renewed focus on quality with the tagline of ‘Target tested, it will be interesting to see whether this will not only improve their image, but increase purchase occasions for Target as ‘Low prices’ has done for Kmart.”


Our extensive range of Discount and Department Retail Store Customer Profiles includes Kmart, Target, Best and Less, Big W and many more. These profiles provide a broad understanding of the target audience, in terms of demographics, attitudes, activities and media usage in Australia.

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Roy Morgan Research

Roy Morgan Research is Australia’s best known and longest established market research and public opinion survey company. Roy Morgan Single Source is thorough, accurate, and provides comprehensive, directly applicable information about current and future customers. It is unique in that it directs all the questions to each individual from a base survey sample of around 55,000 interviews in Australia and 15,000 interviews in New Zealand annually - the largest Single Source databases in the world. The questions asked relate to lifestyle and attitudes, media consumption habits (including TV, radio, newspapers, magazines, cinema, catalogues, pay TV and the Internet), brand and product usage, purchase intentions, retail visitations, service provider preferences, financial information and recreation and leisure activities. This lead product is supported by a nationally networked, consultancy-orientated market research capability.
Shaun Ellis
P: 03 9224 5332
W: www.roymorgan.com


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