America’s Favorite Home Furnishings Retailer May Surprise You
Nope, it’s not IKEA!
Published Jul 17, 2017 5:00 AM
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If you don’t already, here’s a reason to shop at Costco: A new study found that the wholesale giant is the number one retailer for home furnishings in the United States. According to Market Force Information, a customer experience management company, Costco accrued a loyalty score of 72%, beating out both IKEA (70%) and Target (68%) for the top spot.
Market Force surveyed nearly 3,500 American consumers to determine both customer satisfaction and the likelihood that those customers would recommend a store to others, configuring the sum into one composite loyalty score. Other companies who made the list include T.J. Maxx (64%), Kohl’s (63%), Home Goods (62%), and Bed, Bath & Beyond (56%).
The survey also dug deeper to examine the specific factors that determined the overall satisfaction score. Interestingly enough, while Costco scored a higher percentage overall, the only individual attribute it scored highest in was staff availability, weighing in at 65% and followed by T.J. Maxx at 60%. Target and IKEA took first place in every other category, including value for price (IKEA at 72%) and overall service (Target at 75%).
The report also looked at loyalty programs and credit cards customers held within each store. 17% of survey participants owned a home furnishings store-brand credit card and 24% participate in a store’s loyalty program. Kohl’s scored top marks in both categories, achieving 55% and 61%, respectively.
In addition to home furnishings, Market Force released a ranking of the top home improvement retailers. In this category, Ace Hardware scored first, with a loyalty score of 63%. Menards follows closely with a score of 60%. According to the data, these numbers are important as more and more consumers favor a DIY approach to home improvement versus buying materials and paying for outside help.
“Home improvement could be a bright light in the retail sector, with remodeling projects on the rise and consumers more confident about investing in their homes. Our research shows that retailers must continue to focus on the customer experience to differentiate their offer and capture a greater share of the growing market, said Market Force CEO Ray Walsh.
So, the next time you’re thinking about doing an at-home renovation, opt for Ace Hardware and steer clear of the Home Depot, which ranked last consistently across service categories.