Over-55s the shoppers of tomorrow
Published on 08 February 2013 11:30 AM
A new report suggests that the over-55s are set to dominate shopping centres in the future and that the majority of retailers need to adapt to attract them.
The ongoing switch to online shopping, plus relatively low growth, will result in a 10% drop in store shoppers according to retail market research company Conlumino.
However, as the baby boom generation heads into retirement it is predicted they will contribute nearly two-thirds of retail sales growth over the next decade, with the ageing population fuelling a growth of 2.4% - reaching a total of £377bn by 2022.
Despite the potential sales from the older generation, rather than relying on a credit-fuelled boom, retailers will have to up their game to win sales according to Conlumino's analysts.
Spokesman Neil Saunders highlighted the point that the older shopper of tomorrow is expected to be more savvy and demanding, particularly in terms of customer services.
They are also more tuned-in to fashion trends which they want adapted to their age bracket. The key is for brands to get that formula right and take advantage of the opportunity, rather than continuing to create products simply for the 'Miss Marple generation'.
Shopping centres of the future
The report was commissioned by shopping centre developer Hammerson, whose chief executive David Atkins says it intends to respond to the ageing population by increasing car parking space and adding more restaurants and leisure facilities such as cinemas.
This will enable shoppers to make more of 'a day' of it, and break up the shopping experience with more relaxing family activities.
Atkins claims these are experiences that shopping centres can provide more readily than high streets. He also expects to see bigger stores in the future to allow shoppers to see more products on display and to enable collection points to be installed for goods bought online.
This kind of expansion will see the number of retail outlets in the UK fall, according to Conlumino, but the amount of utilised retail floor space will only drop by around 5%.
Copyright Press Association 2013