STORES Magazine - June 2008 - (Page 29)

U-Boomers will account for almost 25% of total U.S. consumption by 2015 more money online over the next three months than they did at this time last year. Whether they shop online or in stores, boomer grandparents scoop up plenty of toys. When the grandkids get older, grandparents opt for gift cards. Prior to the 2007 holiday shopping season, 81 percent were planning to buy gift cards, compared with 78 percent of all adults. B oomer Project Buzz: Grandparents are active and involved with their grandkids, and marketers need to appreciate their role. Why hasn’t anyone created a grandparent/grandchild menu or designated a “grandparent’s night?” How about a grandparent pass to kidfriendly events? They may not want to ride the rollercoaster, but they do want to see the kids’ smiles. Target the Pepsi-Turned-Pepcid Generation Sandwiched between 10 million well-to-do mature Americans and some 11 million disadvantaged households are 24 million baby boomers that are largely ignored by marketers. This segment is described by consultants at McKinsey as “financially unprepared” yet undaunted and uncompromising in its desire for consumer products and services. McKinsey researchers coined the phrase “U-Boomers” to describe this segment and say few companies are gearing up to meet their needs. That’s a big mistake. While they can’t match the Mercedes lifestyle of their wealthier counterparts, U-Boomers will account for almost 25 percent of total U.S. consumption by 2015: That’s a massive untapped market for products and services that meet discriminating 5 tastes and budgets. An article about UBoomers in Forbes makes this key point for marketers: “As the economic clout of the cash-constrained, highly discriminating U-Boomers grows, companies will need to rethink how they deliver services while keeping prices down. Web-based tools that lower delivery costs while retaining a sense of personalization and high-end service are part of the solution. One of the fastest-growing usage segments for Skype's Internet videoconferencing is grandparents talking to their grandchildren.” The McKinsey research calls for ditching the idea that older people prefer smaller specialty stores. Two-thirds of U-Boomers prefer to shop at bigger stores with lower prices, it says, and roughly half prefer doing all their shopping at one store. oomer Project Buzz: U-Boomers value good experiences and good pricing. Take a peek inside a cooking class: guess who you’ll see.? Such classes provide opportunities to learn, to socialize . . . and to buy. And it may be time to remind sales associates that being over 45 doesn’t mean customers have one foot in the grave. B StORES STORES / JUNE 2008 29 WWW.STORES.ORG http://WWW.STORES.ORG

Table of Contents Feed for the Digital Edition of STORES Magazine - June 2008

STORES Magazine - June 2008 Contents Executive Editor's Page President's Page Tesco Tests Carbon Labels What Shoppers Think 10 Things You May Have Missed Numbers Worth Counting Full Price/Markdown Retail People Cover Story: Boom - or Bust Green Retailing Concept2Watch Online Marketing Building Traffic Water Management Branding Digital Marketing Loyalty Programs Special Report: Taking on Teens Supply Chain - Robo Crop Human Resources Supply Chain - Directory Assistance Loeb Retail Letter Arts Update Point of View NRF News Retail Crossword Retail Industry Calendar Last Laugh

STORES Magazine - June 2008

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