Thank heavens the days of zombies strolling cavernous malls seem to be waning.
It’s not just because the U.S. is experiencing a bout of retail retrenchment. In fact, those spaces just don’t have the appeal — especially to the prime millennial demographic (18-34) — that retailers need to create.
That’s the conclusion reached by JLL Research.
“With cash to spend, and the need to own the latest-and-greatest goods and gadgets, the youngest group of adult consumers, born between 1980 and 2000, already spends $ 600 billion a year in the United States alone,” according to the report summary shared with MMW. “It shows no signs of slowing. In fact, they’re on track to spend $ 1.4 trillion annually by 2020, accounting for roughly 30 percent of all retail sales.”
That’s a lot of goods and gadgets.
What can retailers (and the owners of retail spaces) do to grab that millennial moolah?
The latest research from JLL suggests these strategies for appealing to the 18 to 34 crowd:
1. “iMeet + e-shop = they spend. Meet Millennials online. From chat rooms to FaceTiming, and dial-up connections to 3G networks, Millennials came into the world as technologists. They connect with the world through mobile devices and when it comes time to shop, they research products, compare prices while shopping and consult with peers or online consumer reviews to aid their evaluations.”
2. Offer coupons and sales. “They like [and need]a good deal. Millennials wield great spending power, but many are unemployed or underemployed. In short: Push coupons and targeted promotions. Research shows that 38 percent of Millennials are influenced by savings-related signs and in-store displays, compared with 28 percent of all shoppers.
3. Get physical. “Four of five millennials prefer to buy in stores vs. online, and more than half make monthly visits to their favorite stores in most retail categories. JLL research shows they will seek out good deals in stores and online, but gravitate to gathering places and experiences that retail properties can offer.”
4. Hands-on is best. “Millennials need to play prior to purchasing. Stock stores with mobile coupon scanners and in-store kiosks that allow shoppers to test merchandise, as well as check the web for customer reviews in real-time. Millennials like to touch and try out products, know what their peers think, and will hesitate to purchase untried goods.”
5. Go green. “Millennials are defined by their affinity for change and their support for sustainability. With pop-up shops, which conjure a sense of newness and continual change while filling vacant space, retailers cater to Millennials’ desire for ever-evolving spaces with fun sensory experiences, and can feature refreshed showrooms and merchandise.”
To read JLL Research’s full report — “Millennial Consumers: What You Need to Know to Reach Them” – click here.