Acumen Insights

Tweaking Retail Strategy for Millennials

By March 13, 2017 No Comments

Millennials (or Gen Y) are often stereotyped as being a completely new type of consumer. However, research by Mizuho on 1500 Millennials found that they behave similarly to other demographics. What separates Millennials are their unique preferences. Results from the research revealed:

Millennials are not that different. Millennials will soon become the largest group of consumers in the United States. Despite media claims that suggest the 2008 recession heavily impacted millennial shopping behavior, Millennials’ behavior is closely aligned with other demographic groups. For example, Millennials are similar to other generations in that they still delay home purchases but still save for them, still purchase cars despite rideshare popularity, and defer marriage and children in the same manner as the general population.

Millennials still shop in physical stores. Despite doing many things digitally, 54 percent of Millennials continue to shop at brick-and-mortar stores. Millennials place high value on “experiences”. Being in a mall or store allows them to have an “experience” and allows them to touch and feel products. When it comes to purchasing decisions, Millennials value price, quality, availability, and shorter delivery times.

Millennials still stop at specialty retailers. The preferred specialty brands of Millennials include: Nike, Adidas, Old Navy, Bath and Body Works, Victoria’s Secret, American Eagle Outfitters, and Under Armour. Over 43 percent of Millennials preferred luxury specialty brands that are easily accessible.

Millennials prioritize brands that focus on healthy lifestyles and exercise. Approximately 70 percent of Millennials indicated that health/fitness is “important” or “very important” to them. Further, 80+ percent reported working out weekly. In the upcoming year, 70 percent plan to spend more on athletic apparel and footwear. Their preferred brands include: Nike, Adidas, Under Armour, and Puma.