Older shoppers represent one of the greatest un-tapped business opportunities of our time, yet retailers remain obsessed with youth.
According to a recent study by Hitachi Consulting, almost three-quarters (74%) of retail stores in the UK are increasingly focusing their services on 19-38-year-olds.
That’s just nuts.
Numerous reports confirm that older shoppers will be the main drivers of consumption growth across the developed world in the decades to come and yet research from the UK indicates that 49% say they actively avoid brands and retailers, who are in turn ignoring them (Gransnet and Mumset).
This article in The Drum suggests correctly, that many older shoppers (defined here as 55+) are buying everything they have always wanted, they have disposable income and they are actively seeking new things.
Fore example, in Japan when baby boomers started to retire, sales of electric guitars spiked massively.
“Brands and retailers need to embrace this older demographic and take their needs and behaviours into consideration in order to give themselves an opportunity to grow.”The Drum
It’s not an either/or strategic discussion.
The Drum article summarises the issue well, “the retail journey needs to be optimised to work for both (older and younger consumers), add value for both or at least consider both. We call this Lifetime Customer Experience.
This increasingly wealthy and growing older generation represents a big opportunity for consumer businesses and retailers, and one they should continue to pursue with interest.