Gen X Spends Most on Groceries, Millennials the Least
September 11, 2013
JACKSONVILLE, Fla.—Gen Xers spend more on groceries per month than any other generation, an average $323.10, while Millennials spend the least with an average monthly output of $252.60, according to a new market research report from Acosta Sales & Marketing.
The report, examines the unique shopping habits of the four distinct generations in grocery stores today—Millennials, Gen X, Baby Boomers and the Silent Generation. It also offers strategic recommendations on how brands and retailers can effectively engage each and maintain relevancy across generational divides.
Each generation has a distinct shopping style. Millennials are heavily influenced by friends and social/community and shop the store perimeter. Gen Xers are knowledgeable shoppers who use information to guide their decisions. Boomers are fairly brand loyal, and respond to products and retailers that address the “What’s in it for me?" question. Silents are brand loyalists who buy what they have bought before.
Millennials shop most frequently, making an average of 4.1 routine trips per month. Baby Boomers and the Silent Generation both average 3.6 routine shopping trips while Gen X frequents stores an average of 3.9 times.
The Silent Generation is the most loyal to branded products, with only 26% buying more store brands to save money, while Millennials are the least loyal to branded products, with 42% buying more store brands to save money.
Channel preference varies among generations. Millennials are making more trips to club and drug channels, while Gen Xers are frequenting grocery and dollar channels most often. Baby Boomers are shopping more at grocery and club channels, while Silents are going to drug and dollar channels most frequently.
“Understanding the unique characteristics and shopping habits of each group is now more important than ever as consumers are living and shopping longer than in previous years, which has led to an unprecedented number of active generations in the marketplace. With more generations in the mix, the key for brands and retailers is striking a balance of engaging one generation without alienating the others," said Colin Stewart, senior vice president of AMG Strategic Advisors, Acosta’s growth strategy consulting unit that compiled the report.
A report released last month by Packaged Facts found a trend of major changes in grocery retailing. According to the report, the greatest competition to supermarkets and grocery stores is from supersized stores like supercenters and warehouse clubs, however other retail channels like drugstores, dollar stores, limited assortment chains and online grocery shopping also pose a great threat. Data also showed 83% of shoppers cited being satisfied with the store(s) where they usually shop for groceries, 56% enjoy grocery shopping and 18% actively dislike grocery shopping. This suggests that retailers have room to improve in making grocery shopping easier, less burdensome and enjoyable for a significant amount of their customers.