Over the past few weeks the Webloyalty team has been discussing insights taken from a recent research report looking at the future of retail.
Today we would like to introduce the next section, looking at the findings.
According to the retail report, while the consumer economy is set to experience a relative recovery up until 2022, we will not see an even distribution across all consumer segments.
Changes in demographic spending offers opportunities for retailers, however they need to ensure that they are also flexible enough to respond to the changes in their audience’s behaviours.
Interestingly, one of the most significant opportunities over the medium term is said to be seen from older consumers. Over the next ten years it is predicted that we will see an explosion in growth amongst older age cohorts. It is said that the number of 65-74’s in the UK will grow by 13% over the next ten years and numbers in the over 75’s will grow by 30%.
The older generation
Population growth among other demographic groups is expected to be at a far lower rate. In addition, it is predicted that we will see lower birth rates and longer life expectancy. As a result, over the next ten years, almost two-thirds of all retail spending growth is set to come from those aged over 55.
Whilst this sector is likely to grow, retailers will need to work hard to persuade older shoppers to spend. Even though older consumers in the UK were initially insulated from the recession, because many owned their own homes and had higher levels of savings, over the past few years this generation has also had their income eroded by a number of factors, including low interest rates. The older generation therefore have become more cautious when it comes to spending.
But how will retailers react to these changes?
Have retailers been previously guilty of being too focused on younger generations and how will they adapt to take advantage of this new opportunity?
Source: The Future of Retail Report – free download