Shopping Center Business

MAY 2015

Shopping Center Business is the leading monthly business magazine for the retail real estate industry.

Issue link: https://shoppingcenterbusiness.epubxp.com/i/502572

Contents of this Issue

Navigation

Page 333 of 342

MAY 2015 • SHOPPING CENTER BUSINESS • 329 Jill Bensley Retail must target fve generations with different needs and wants. Targeting Multiple Generations M ost retailers are fans of the new- est consumers to come of age, the Millennials. These young adults, who are now aged 19 to 33 and number almost 70 million, are the dar- lings of the marketing world. But in their rush to capture the hearts and minds of these young consumers, who are now forming their first real households, many brands are forgetting about the other generations. To help our colleagues drive sales to adults in various life stages, we created an easy chart to start the conversation. Each generation has a special way it likes to be approached, and each re- sponds differently to messaging. For ex- ample, Boomers still shop in department stores, although certainly not as much as when the oldest boomers, now 69, were kids. Gen Y rarely shops in department stores unless it is one of the "cool" ones, which include Nordstrom or Barney's, or when they are shopping for their parents' Christmas gifts, so they can be easily re- turned to a convenient location. In terms of amount spent per visit to the mall and department store, the 45 to 54 age group cuts across two genera- tions, Gen X and Baby Boomers. De- partment store spending, however, is highest among Boomers, while all other spending in highest again across Gen Y and Boomers. Teenagers visit the mall most frequently, but understandably, do not spend very much per visit. In terms of wealth, an interesting analysis indicates that Gen X, a sector largely ignored by great brands, is a real contender when it comes to income and net worth and wealth. The difference be- tween income and wealth is that income is what you earn every year, and wealth is the totality of your assets minus your liabilities. In terms of net wealth, Baby Boomers hold the highest percentage of net worth dollars at 34 percent and the highest share of total income dollars, at 39 percent (see chart next page). The second highest is held by Gen X at 29 percent of net worth dollars and 31 percent of total income dollars. Millennials hold 21 percent of net worth, and about 18 percent of total income dollars. Again, markets with the most money are Boomers and Gen-X. But that is because Gen Y is young, and on their way to being the consumer heavy weight in the next 20 years. Some salient characteristics of each of the largest buying generations, Boomers and Gen-X include the following: • Gen-Xers have money. They make Swing and World War II • Born between 1909-1945 • 33.7 million • 69 or older • 14 percent of adults • Health care consumers • "Grandchildren" spending • Delayed gratification • Moderation • Discipline Baby Boomers • Born between 1946 – 1964 • 74.9 million • Ages: 50 – 68 • 32 percent of adults • Multi-generational consumers • Drivers of growth in leisure/hospitality • Still individualistic and "rebels" • Starting to think about retirement • Forever young • 45 million grandparents Gen X • Born between 1965 - 1980 • 60.4 million • Ages: 34 – 49 • 25 percent of adults • Boomer parents • Divorced parents • Insecure • Practical in consumption • Diversity • Responsible • Use web extensively Gen Y / Millennials • Born between 1981 - 1995 • 67.9 million • Ages: 19 – 33 • 29 percent of adults • Ethnically diverse • Tech savvy • Multi-taskers • Need lots of input • Prefer health to wealth • Prefer mobile communication • Omni-cultural GENERATIONAL MARKET SEGMENTS Gen Z • Born between 1996 – 2010 • 46 million • Ages: 5 – 18 • Structured schedules • Over managed • Info in short grabs • Multi-taskers • Tech savvy/omni-cultural • The "I" generation Source: JB Research Company

Articles in this issue

Archives of this issue

view archives of Shopping Center Business - MAY 2015