Up to this point, we’ve been discussing which retailers are best positioned to win over the long-term, in the US market in general. However, we recognize that some consumers may prioritize savings more than others, and some may prioritize quality over savings.

In our study, we directly asked customers how important different dimensions of the value proposition were to them, for purposes of identifying different consumer needs based segments. Some of those statements for three segments were identified are shown in the graphic.

One big takeaway from this exercise is that, while quality driven and savings driven consumers do seek what drives them most often, neither segment completely disregards the other side of the value equation. Example, the majority of Quality Driven customers still say prices are important to them. Even if Quality drives them, there is a point at which any sacrifice on Savings becomes too much.

Some retailers may attempt to build a value proposition that resonates more with one consumer segment than another, while some have value propositions that have broader appeal.

Many retailers in the 1st Quartile overall appeal to multiple segments, some even to all three up and down the quality vs savings spectrum. These retailers have a value proposition that truly have something for everyone. Others are driving success with a value proposition focused to resonate more with a particular segment.

H-E-B, Costco, Aldi, Amazon, Sam’s Club, Walmart Neighborhood and Meijer are the 7 retailers in the U.S. who are in the top quartile not just overall, but they are in the top quartile for each consumer segment as well.

Trader Joe’s, Wegmans and Publix resonate most with the Quality-First and Balanced Quality/Savings consumers.

Walmart, Walmart Neighborhood Market and Kroger appeal to Savings-First and Balanced Quality/Savings consumers.

Market Basket and WinCo, interestingly, appeal to Quality First and Savings First consumers, but they aren’t as strongly positioned with the middle. Each of these retailers are market leaders in savings and solid on quality perception, but they are laggards in Speed/Convenience and Digital. These pillars together are more important with Balanced Quality/Savings consumers than for other consumers, so if retailers don’t deliver on one or both, they’re going to have a harder time appealing to the Balanced Quality/Savings consumer.

Just because a retailer isn’t in the 1st Quartile overall doesn’t mean they aren’t positioned for growth or success. We saw earlier that 2nd Quartile retailers still experience growth over the long-term even if not at the same rate as 1st Quartile retailers, and we even saw that 2nd Quartile retailers are just as effective as 1st Quartile retailers in securing a strong individual customer share of wallet.

Additionally, some retailers do have a 1st Quartile appeal, they just appeal particularly strongly to a specific segment.

Hy-Vee, Fresh Thyme and Stater Bros., for instance, would be a 1st Quartile retailer if we examined results for just Quality-Driven consumers. Food Lion and King Soopers make the leap for Balanced Quality/Savings consumers, and a handful of additional regional supermarkets would make the cut if we focused this study on just Savings-Driven Consumers.