My “What’s in Store” column from Aug. 5, 2013.
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Historically, at least, Generation Y has been an age group retailers have struggled to reach.
But since they are armed with the digital prowess and market savvy of most plugged-in millennials, retail chains have been forced to find a way to reach the 21st century’s first true digital generation. Old-school print catalogs and mail-in coupons just won’t do it anymore. But that doesn’t mean they aren’t trying.
Macy’s announced this month that it will expand its line of Gen Y brands in spring, the second consecutive year the department store chain has added to offerings aimed at the teen-to-twenties age group to reach its next generation of shoppers. Among those new brands are Maison Jules and QMack, which will be available in 150 stores across the country this month.
The retailer also has honed its “Mstylelab” and “Impulse” departments as of late, which focuses on shoppers aged 13 to 22 and 19 to 30 age groups.
Like many retailers, Macy’s doesn’t want to ignore millennials, because their math is pretty compelling: There are roughly 80 million in the U.S. (including me), and collectively, we spend about $600 billion a year, according to St. Petersburg consulting firm Accenture. If projections hold, that spending will grow to $1.4 trillion annually by 2020.
But the problem for Macy’s and others is we don’t fit a mold.
Not all of us shop online. Accenture’s survey notes we still like to shop in malls and actually like to see and feel the products we buy. But nearly half engage in “showrooming,” where they go to a store to check out an item, then search online for a better price. (Most millennials expect prices in stores and online to be similar, or identical).
From the retailers’ perspective, too, there are concerns that Gen. Y shoppers lack brand loyalty. In a survey, nearly 40 percent of retail industry leaders said it’s their biggest concern about the demographic.
Read more here.