Age isn’t anything but a number — with dollar signs.
According to recent data cited by CPExecutive.com, the senior age group — 55 and older — have more spending power than their younger counterparts. Research found that seniors spent $25,952 in average expenditures per capita in 2010, compared to the 55 and younger age group that spent an average of $16,518 per capita that same year.
The 55-and-older demographic is a fairly significant channel and retailers really should be catering to them. Their incomes are projected to grow faster in the next five years than the younger generations. Many consumers who are 55 and older are the ones with the disposable income. But it’s the younger crowd that get all the attention.
Besides having the spending power, Baby Boomers have unique shopping characteristics that retailers should pay attention to:
- Many seniors prefer to shop in person. They need to touch and feel the product first-hand because that’s how they have been shopping most of their lives.
- Aging baby boomers develop brand loyalty by shopping in the stores. When a retail property combines multiple uses like healthcare and retail, it gives seniors more reasons to come more often.
- A recent survey identified the top retail spending categories for seniors. They included health and personal care, garden supplies and home centers. Retailers who sell these products could benefit from building a store in areas with a higher population of seniors.
- Research shows that seniors don’t like the larger stores, and they also prefer to be able to park closer to the store. Retailers should think about how merchandising and store locations play with this age group.
Source: Commercial Property Executive, May 2012