The age group of the Millennials — with persons ages 20-39 — has been blamed for killing all sorts of industries. To stay thriving in the economy with a new kind of consumer, retail stores have to change their approach to stay relevant and cater to the younger generation’s shopping habits.
A recent report by Coresight Research, a global research firm, suggests that the age gap between the Millennial generation has a deep divide when it comes to “attitudes and behaviors.”
The research published by Coresight April 15 suggests that younger Millenials prefer to shop at mass merchandisers focusing their purchasing on well-being and fitness products while maintaining frugality. Millenials ages 30 and up tend to check for savings as well, shopping at traditional supermarkets, buying groceries online and being labeled as “sensible, settled and digital shoppers,” according to Coresight’s report.
“Millennials under 30 are the peak age group for buying groceries at mass merchandisers Walmart and Target,” the report states. “Older millennials tend to be the peak demographic for traditional-format supermarkets, such as Kroger and Albertsons, as well as for buying groceries online.”
According to the Pew Research Center, as U.S. society has undergone several cultural shifts, Millennials tend to be better educated than generations before them, although there is a sharp divide in “economic fortunes” of those who have and don’t have a college education. Pew Research states that Millennial’s consist of more racial and ethnic diversity than previous generations and, like their Generation X counterparts, are more likely to work than stay home.
The American Baker’s Association recently released a study regarding how to attract more Millennial and Gen Z customers to purchase baked goods.
“Millennials are now the trend drivers in the baked goods category,” said Jason Dorsey, President of the Center for Generational Kinetics and the report’s author. “This is true from grocery stores to food service. Accurately uncovering, understanding, and explaining Millennials at this critical time in their consumer evolution will help to drive the growth of the baked goods category and bust through myths about the generation. The study not only exposed surprising insights but also revealed that baked goods have a promising future with Millennials as their spending and influence is poised to only increase.” And with this study, the news is good for those in the baked goods industry. Millenials and Gen Z still have an appetite for sweets and baked goods, despite focusing their purchasing power on health food items. According to the study by the American Bakers Association, about 73 percent of Gen Z and Millenials eat carbs regularly and incorporate them into their diet.
“Across all product categories, Gen Z and Millennials in the study say the most important nutritional descriptors for baked goods are ‘whole grains,’ ‘freshness’ and ‘natural ingredients,’” the ABA wrote.