Generation Y: Retail Trendsetters. M. Leanne Lachman Lachman Associates May 16, 2013
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1 Generation Y: Retail Trendsetters M. Leanne Lachman Lachman Associates May 16, 2013
2 Great Retail News 37% of Gen Y loves to shop 48% enjoys shopping 12% say it s a chore they can handle 4% hates shopping Totals may not add to 100% because of rounding
3 Challenging Corollaries 18- to 35-year-olds are easily bored Sensory experiences need to evolve frequently 45% spend >1 hour/day on retail web sites Comfortable with multi-channel shopping
4 Who is Gen Y? Silent Generation Depression & War Babies Baby Boom Gen X Gen Y Gen Next Source: U.S. Census Bureau, 2010
5 ULI s Gen Y Retail Survey Nationally representative sample: By age 18- to 35-year-olds By race/ethnicity By four U.S. regions Confidence level of + 3% n=1251 responses Conducted by Harris Interactive Service Bureau/Lachman Associates
6 Gen Y Profile Age Marital Status % Single 64% % Divorced/Widowed 2% % Married/Partnered 34% Race Living w/children <18 37% White 74% Black 16% Car Ownership 76% Other 10% Hispanic 20%
7 Gen Y s Pets Pet Owners 71.5% Dog(s) 53% Cat(s) 35% No Pets 28.5% n=1251
8 Gen-Yers Household Income 12% 22% 12% 23% 14% Under $25,000 $25,000 $34,999 $35,000 $49,999 $50,000 $74,999 $75,000 $99,999 $100, % n=1166
9 Current Gen Y Housing 5% Owners 37% 32% Live with Parents/Relatives Student Housing Renters 2% 24% Other, n= 1251
10 Gen Y Employment
11 Gen Y s Self Characterization I consider myself: 0% 10% 20% 30% 40% 50% City Person Suburbanite Small Town/Rural Person n=1251.
12 Gen Y Downtowners Only 14% of sample: 24% of Northeasterners vs. 16% for rest 28% of Southerners vs. 39% for rest 64% male vs. 47% for rest 51% age vs. 44% for rest 34% Hispanic vs. 18% for rest 23% Black vs. 15% for rest Gen Y s fashionistas
13 How can we know who we are when the best marketing consultants of our time don t know.
14 Shopping Center Patronage At Least Weekly Few Times/ Monthly Rarely/ Never Neighborhood/Community SCs Enclosed Malls 21% 53% 26% 14% 50% 36% Power Centers 12% 51% 38% Neighborhood Bus. District 13% 41% 46% Central Business District 12% 36% 53% Totals may not add to 100% because of rounding
15 Store Patronage At Least Weekly Few Times/ Monthly Rarely/ Never Discount Dept. Store/Warehouse Club 31% 60% 10% Full-Line Dept. Store Apparel-Oriented Dept. Store 12% 52% 35% 5% 32% 62% Chain Apparel Store 9% 49% 43% Totals may not add to 100% because of rounding
16 Typical Way to Shop for Clothes With Family Members 37% With Friends 28% Alone 35%
17 Non-Perishable Grocery Shopping Discount Dept. Store w/food Section 63% Supermarket 56% Warehouse Club 23% Discount Supermarket 20% Small Grocer 17% Drug Store 5% Online 1% Respondents could identify up to 3 venues
18 Next time we re shopping at Wal-Mart.
19 Fresh Grocery Shopping Supermarket 61% Discount Dept. Store w/food Section 49% Specialty Grocer 18% Small Grocer 17% Warehouse Club 16% Green Grocer/Farmer s Market 16% Respondents could identify up to 3 venues
20 Daily Time on Retail-Oriented Web Sites Men Women Total <1 Hour 52% 58% 55% 1-2 Hours 28% 29% 28% 2-3 Hours 12% 9% 11% >3 Hours 8% 4% 6% 100% 100% 100%
21 Gen Y s Online Shopping Electronics/Computer Equipment 44% Women 34% Men 54% Gifts 43% Personal Clothing 41% Women 47% Men 36% Books 39% CDs/DVDs 33% Items purchased online in prior six months; multiple responses permitted
22 Logistics/Warehouse Demand Fed Ex, UPS, USPS = big winners On-going need for cross-docked warehouses New demand for pick-and-pack facilities Retailers/malls encourage pick up/returns Promised delivery times are shrinking
23 Frequency of Dining Out At Least Weekly Few Times a Month Rarely/ Never Breakfast 22% 16% 62% Lunch 36% 35% 29% Dinner 38% 42% 20% Weekend Brunch 16% 17% 67%
24 Favorite Gathering Places with Friends Home: Mine or Theirs 66% Restaurant 59% Bar 30% Shopping Center 28% Coffee Shop 22% Park/Beach 20% Respondents could identify up to 3 venues
25 Real Estate Implications Huge logistics/warehouse demand Discount department stores/warehouse clubs popular Strong enclosed mall appeal Encourage social gathering Keep shopping experience fresh Restaurants are hot but Gen Y is fickle Online sales eroding brick-and-mortar need Underserved communities deserve attention Density and walkability attract Gen Y
26 And I think I speak for an entire generation when I remind my opponent that that was then and this is now.
27 Generation Y: Retail Trendsetters M. Leanne Lachman Lachman Associates May 16, 2013
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