The opening lyrics to ABBA’s hit song “Money, Money, Money” harmonize, “I work all night, I work all day to pay bills I have to pay/Ain’t it sad?/And still there never seems to be a single penny left for me.”

As consumers today work to pay their bills and buy groceries, data shows that mass merchandisers are serving as a go-to channel to stretch their dollars.

The No. 1 reason consumers shop at mass merchandisers is for their affordable prices. Consumers know that the quantity and quality of options available will be worth the price without having to break their budgets.

In Chicago-based Mintel’s December 2023 report titled “Mass Merchandisers – US,” author Katie Hansen, senior analyst of retail and eCommerce, notes that affordable prices, private label selections and curated product options have made mass merchandisers an attractive option for consumers.

“The No. 1 reason consumers shop at mass merchandisers is for their affordable prices,” the report states. “Consumers know that the quantity and quality of options available will be worth the price without having to break their budgets. This will continue to be key for retailers as consumers aim to steady their financial footing.”

The report highlights that although inflation has cooled, increased prices are influencing consumer shopping decisions. One way consumers are combating this is by opting for private label products.

“More consumers are switching to private label items and focusing on price when shopping at mass merchandisers,” the report states. “Retailers will need to show value to shoppers in various ways in order to keep them coming back.”

However, Mintel’s report notes that just because consumers are opting for private label in their shopping baskets, they still expect more from these products.

“Nearly half of consumers want retailers to continue to improve their private label brand offerings,” the report states. “In doing so, mass merchandisers will stay competitive in a growing market and look to acquire new customers.”

Partnering for success

Another way that mass merchandisers are connecting with consumers today is through partnerships across a range of categories.

“These partnerships can result in new product options and concepts, new brands and fun ways to shop for consumers,” Mintel’s report states. “This should continue to be a focus for mass merchandisers as they look to attract consumers to their stores, online and offline.”

Recently, Target Corp., Minneapolis, announced a collaboration with Universal Pictures’ “Wicked” this fall. In the lead-up to the film’s Nov. 22 release, Target will offer more than 150 movie-inspired products in most stores and on Target.com. Nearly 70% of the items will only be available at Target, including an apparel and accessories line created by the film’s costume designer Paul Tazewell, Mattel's Elphaba Singing Doll & Fiyero Fashion Doll, limited-edition Stanley Quenchers, a special version of the soundtrack on vinyl, and more.

And last year, Target deepened its partnership with Starbucks Corp., Seattle, when it announced that guests nationwide are able to add Starbucks menu items to a Drive Up order and have it delivered to their car at stores offering the retailer’s free Drive Up service.

“Our guests have long told us Drive Up is a game-changer, adding convenience to their daily life, especially when they’re short on time,” stated Mark Schindele, executive vice president and chief stores officer at Target, in an August 2023 release. “We’ve continued listening to our guests, who’ve told us overwhelmingly that Drive Up with Starbucks would bring even more ease and joy to every Target run. This one-of-a-kind service — available only at Target — is the latest example of how we’re innovating every day to meet the needs of our guests.”

The Drive Up with Starbucks service builds upon Target’s more than 20-year partnership with Starbucks, which has more than 1,700 Cafés in Target stores across the country, the company says.

Walmart Inc. Bentonville, Ark., also is expanding its partnerships through its digital properties. Earlier this year, the company announced that Walmart+ and Miami-based Burger King joined forces to introduce an exclusive dining benefit for Walmart+ members, enhancing the value and convenience of the membership program, the company says.

Walmart+ members can redeem 25% off any Burger King digital order every day at participating restaurants through digital orders placed on the BK App or bk.com for BK Royal Perks and Walmart+ members only. Additionally, members can receive a free flame-grilled Whopper every three months with any purchase at participating restaurants through digital orders placed in the BK App or bk.com for BK Royal Perks and Walmart+ members only.

“The inclusion of a Burger King benefit in our Walmart+ membership portfolio is exciting,” said Venessa Yates, senior vice president and general manager of Walmart+, in a statement. “We consistently strive to offer benefits that focus on our members, aligning with our commitment to deliver undeniable value and convenience. We’re confident our members will welcome the additional savings, and we're thrilled to collaborate with a trusted brand like Burger King to offer this benefit.”

As consumers embrace omnichannel shopping, mass merchandisers will be more inclined to deepen partnerships as well as elevate their private label offerings to draw in shoppers.