Millennials Driving Retail Industry to Revisit In-Store Sales Strategies0 Comment
Retailers and mall owners have their in-store sales strategies centered right on Millennials, the generation ages 18 to 34. This fast-growing consumer segment totals 80 million Americans who spend approximately $600 billion annually. Knowing how to attract Millennials’ money is the name of the game for retailers and retail owners and investors attending the International Council of Shopping Centers(ICSC) Real Estate Conference (RECon) this week in Las Vegas, as they must stay ahead of both in-store and online channels to capture cash from the millennial shopper.
JLL’s Director of Retail Property Marketing Julie Rickey specializes in capturing the millennial buyer segment through innovative marketing techniques, and says the key is understanding their shopping behavior. “Nearly half of Millennials research products online and then they buy them in-store. They certainly use their comfort with technology to their advantage and it’s often to compare prices, learn about the latest trends and capture the best deal possible before they walk into a physical retail space,” says Rickey. She says Millennials are all about the best deals, and retailers know they can influence them with a range of visual and direct marketing techniques.
JLL Retail has identified 10 actions retailers or landlords can take to attract Millennials. Read JLL Retail’s full report, Millennial Consumers: What You Need to Know to Reach Them on how Millennials are impacting commercial real estate.
JLL research found that thirty-eight percent of Millennials are influenced by signs or displays in the store, versus 28 percent of all shoppers. Retailers are now revisiting their in-store strategies to add more visual enticement and loyalty programs as fifty percent of this young shopper segment are influenced by these programs, versus 40 percent of the general population.
It makes sense that this young cohort is particularly sensitive to bargains and e-coupons given the effective (U-6) unemployment rate for 18-29 year olds is 15.5 percent (NSA).Many Millennials remain underemployed or unemployed; and their household income varies, 23 percent earn less than $25,000 while nearly the same amount, 24 percent, earn more than $75,000.
“For Millennials it’s all about value, they are highly price sensitive and will continue to put a greater emphasis on price and value. Those core values are not going to change anytime soon, so it’s up to the retail industry to adapt to this shift in consumer demand,” added Rickey.
While they do want a good deal, Millennials still represent an enormous amount of buying power. By 2020, Millennials are expected to spend $1.4 trillion, representing 30 percent of total retail sales. This is leaving retailers, marketers and brands trying to keep pace with the fastest growing consumer segment. Watch JLL Retails’ news report to hear the industry’s leading experts describe their strategies to attract Millennials