August 29, 2012
Seniors In Retailers’ Sights?
Dealing (in every sense of the word) with an aging population is a hot topic globally. One of Aeon’s malls in Asia has recently found new ways to make shopping easier, and more attractive, to seniors. In addition to stores with products, services and displays aimed at older people, essential amenities such as escalators have been modified to improve accessibility.
At Funabashi, near Tokyo, discounts may be offered on pension day. Clinics and leisure activities are located among more familiar retailers. Speaking to the Financial Times, Jerry Black, Aeon’s executive vice-president and chief strategy officer, describes older Japanese people as "the wealthiest, most active, healthiest and longest-living retirement generation in the history of the world."
In Europe, Kaiser’s German supermarkets feature magnifying glasses on trolleys and shelves, bright lights, non-slip floors, emergency call buttons and aisles wide enough for mobility scooters.
Accommodating older shoppers seems logical. According to the Financial Times, "Daiichi Life Research Institute estimates that the over-60s account for 40 percent of Japan’s consumption spending" while Boston Consulting Group calculates "globally, those over 55 — called ‘the Silver Sector’ — will account for more than half the consumer spending growth in developed markets over the next two decades."
Japan Daily Press reported on Funabashi in April, pointing to Aeon’s shift in emphasis from families to what it says is a "diversified and increasingly active senior population." Japan Times added that products dedicated to their target market include bifocals that can be delivered the day they’re ordered and "a new brand of products for women in their 40s or older created by a major South Korean cosmetics company." Signs are also larger than are generally used.
As for letting older people know what’s available, there is work to be done. Dick Boer, chief executive of Netherlands-based retailer, Ahold, observes that "advertising always reaches young people." Unfortunately, however, as information and measurement company, Nielsen, points out, "those over 65 watch the most television in the U.S. but are targeted by only five percent of advertisers."
BrainTrust
Recent Discussions
Discussion Questions
Are U.S. retailers taking steps to ensure they are accommodating older shoppers? What steps should retailers be preparing for in the near-term and long-term?
Poll
The answer to the first question is: “Not fast enough.” It’s hardly any secret that Baby Boomers represent a huge population bubble with plenty of spending power as they age, even as they reach eligibility for Medicare and Social Security. Yet most retailers gear their merchandising and marketing toward the 35-55 age group or even younger, in the elusive hunt for the “aspirational.” This extends to store design, too, with many retailers failing to take steps to make signs more readable or merchandise more accessible. Most retailers remain behind the curve on this issue.
This topic made me sit back and think about my recent shopping experiences since I qualify as a senior shopper. I do not like shopping for shopping’s sake. I am one who has a destination and objective. Get there, find it, buy it and leave.
Back to the senior question. I have to say no, retailers do not think of catering to seniors as much as they think of them as an afterthought. Most retailers don’t realize the spending power of seniors. If they did, their marketing strategy would change.
Nielsen’s data indicates seniors are watching the most television. Retailers should consider tailoring their TV spots to communicate customer service and personal assistance.
There was a RetailWire article recently about self-checkout and whether retailers should consider stressing personal service or technology solutions. Seniors (by and large) would like to know there are knowledgeable people in the store to service their needs.
When companies think about creating an engaging shopping experience, they most often think about how to create that experience for millennials. That may not be the best experience for seniors. What aspects of the experience could or should appeal to both? What aspects would appeal to your most valuable consumers? What products appeal to both or either group? The lack of a mass market continues to become more extreme, making the job of creating products, experience, and safety an increasing challenge for manufacturers and retailers.
U.S. retailers have been doing several things to meet the needs of older shoppers. These include smaller sizes (some of which has also been driven by the desire to maintain or secure a lower price point in this economy), larger print on signage, wider aisles (again also helps meet ADA requirements), senior discounts (some based time of day, special meals), etc.
The issue in the U.S. is that everyone has always chased the younger shopper. There are lots of reasons for the youth focus. They were the aspirational shoppers, get them while they are young and secure them for life, etc. Unfortunately, between the higher unemployment in the younger segments of the population and the impact the economy has had on their incomes, this population segment no longer has the disposable funds it used to have. With this being the new reality, I expect the emphasis placed on the older shopper to increase.
Why, oh, why, would a retailer spend capital to accommodate a demographic that will spend less money every year and eventually die? A retailer would be considerably wiser to spend capital on accommodating the obese. They are younger, they are of an age group that continues to spend more money each year. Or better yet, spend to further develop online business, where the future really is.
When you are spending capital, follow the money, and spend it on the future, not the dying breed.
I shop with my 84-year-old mother. It’s much easier for her if price tags are readable, there are shopping carts (her walk is unsteady), sales associates are nearby to help, and handicapped parking is close by. One recommendation to quick serve restaurants — can you make the type size on your signs a little bigger?
Most retailers and CPG manufacturers in the US are doing an appallingly bad job of accomodating older shoppers. What’s so hard to understand when you look at the disposable income and overall wealth held by the Boomer generation? For retailers, there’s absolutely no reason not to put more thought and action into better merchandising, just to start; and don’t even ask about the stores that run pallet-jacks up and down all their aisles to restock mid-morning on Saturdays! What’s the intended shopper experience in this? Or is it “off the radar” altogether?
Given the size of the Boomers, it would be a mistake to ignore the opportunity that this age group offers. They are different than the generation before them as they age and although there was financial loss felt during the downturn by this group, there is still spending power. I think it is a mixed bag in terms of taking enough steps to accommodate older shoppers — some retailers are paying attention while others are ignoring the needs of this shopper group.
I do all the grocery shopping. I am always struck by how poorly laid out a supermarket is for seniors with products on high shelves and junk in the aisle at all hours at the place I shop most, Waldbaums.
Seniors expect a higher standard of courtesy and time to make decisions on their purchases. A minimum wage flunky reciting canned speech will turn them off. Savvy stores will gauge the need for more than one-on coverage in mornings and during the times that seniors like to shop.
Not according to a recent exchange with a Fortune 50 retailer. This particular retailer proudly promoted a 10% discount on purchases made by our military veterans. The father and honored WWII veteran of a colleague recently visited this particular retailer and purchased some items. At the check out, this gentlemen reached into his wallet and proudly presented his laminated military card from the ’40s! Unfortunately both the checkout employee and the manager of the store questioned the validity of the identification and only after pressure was applied, did they honor the discount.
They retailer had not done their research with regard to “our greatest generation” and what the military had issued in the ’40s and included that into their overall policy. Even after bringing this to the attention of executives at the retailer along with their ‘fire drill’ attention to correct the situation, not only did they never contact the gentlemen and issue an apology, the same thing happened on a subsequent visit!
This is a classic case of corporate policy getting in the way of doing the right thing for the customer. Retailers: make sure you do homework and are thorough before crowing too loudly about your promotions, especially when it touches your veteran and senior customers.
Seniors are a nasty proposition. In a retail world that’s avidly and energetically moving to new ways and new media to reach consumers, seniors stubbornly watch television and feel uneasy with new media. And that’s not a situation that’s really subject to change.
That said, there are plenty of simple tactics that retailers can deploy to attract seniors. It’s important to remember that for many with fixed income, price is an extremely sensitive issue, and retailers that emphasize price are more likely to pull seniors into their stores. In addition, since seniors do not make the huge basic purchases of life’s necessities, manageable sizes make more sense to them. But making signs seeable, explanations crystal clear on such things as self-checkout and other simple things like that are ways to attract the elderly.
It’s not just the retailers, but the manufacturers too. Both are focused on the perceived high spend value of the family and lose sight of the true value of customer loyalty.
Understand your loyal customer/consumer and meet their needs…whatever their age!
No. This is one of the largest opportunities (marketing to seniors) which retailers still do not understand. Simple marketing efforts like special senior discounts, and then marketing these, are a great start. Accomodating seniors also means embracing their lifestyle choices, product choices and personal issues. These include magnified text and prices, products which reflect a “senior” lifestyle, as well as stores which are easier to navigate, communicate and embrace this segment (no tall shelves), easy to read product placement and POS, etc.
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The answer to the first question is: “Not fast enough.” It’s hardly any secret that Baby Boomers represent a huge population bubble with plenty of spending power as they age, even as they reach eligibility for Medicare and Social Security. Yet most retailers gear their merchandising and marketing toward the 35-55 age group or even younger, in the elusive hunt for the “aspirational.” This extends to store design, too, with many retailers failing to take steps to make signs more readable or merchandise more accessible. Most retailers remain behind the curve on this issue.
This topic made me sit back and think about my recent shopping experiences since I qualify as a senior shopper. I do not like shopping for shopping’s sake. I am one who has a destination and objective. Get there, find it, buy it and leave.
Back to the senior question. I have to say no, retailers do not think of catering to seniors as much as they think of them as an afterthought. Most retailers don’t realize the spending power of seniors. If they did, their marketing strategy would change.
Nielsen’s data indicates seniors are watching the most television. Retailers should consider tailoring their TV spots to communicate customer service and personal assistance.
There was a RetailWire article recently about self-checkout and whether retailers should consider stressing personal service or technology solutions. Seniors (by and large) would like to know there are knowledgeable people in the store to service their needs.
When companies think about creating an engaging shopping experience, they most often think about how to create that experience for millennials. That may not be the best experience for seniors. What aspects of the experience could or should appeal to both? What aspects would appeal to your most valuable consumers? What products appeal to both or either group? The lack of a mass market continues to become more extreme, making the job of creating products, experience, and safety an increasing challenge for manufacturers and retailers.
U.S. retailers have been doing several things to meet the needs of older shoppers. These include smaller sizes (some of which has also been driven by the desire to maintain or secure a lower price point in this economy), larger print on signage, wider aisles (again also helps meet ADA requirements), senior discounts (some based time of day, special meals), etc.
The issue in the U.S. is that everyone has always chased the younger shopper. There are lots of reasons for the youth focus. They were the aspirational shoppers, get them while they are young and secure them for life, etc. Unfortunately, between the higher unemployment in the younger segments of the population and the impact the economy has had on their incomes, this population segment no longer has the disposable funds it used to have. With this being the new reality, I expect the emphasis placed on the older shopper to increase.
Why, oh, why, would a retailer spend capital to accommodate a demographic that will spend less money every year and eventually die? A retailer would be considerably wiser to spend capital on accommodating the obese. They are younger, they are of an age group that continues to spend more money each year. Or better yet, spend to further develop online business, where the future really is.
When you are spending capital, follow the money, and spend it on the future, not the dying breed.
I shop with my 84-year-old mother. It’s much easier for her if price tags are readable, there are shopping carts (her walk is unsteady), sales associates are nearby to help, and handicapped parking is close by. One recommendation to quick serve restaurants — can you make the type size on your signs a little bigger?
Most retailers and CPG manufacturers in the US are doing an appallingly bad job of accomodating older shoppers. What’s so hard to understand when you look at the disposable income and overall wealth held by the Boomer generation? For retailers, there’s absolutely no reason not to put more thought and action into better merchandising, just to start; and don’t even ask about the stores that run pallet-jacks up and down all their aisles to restock mid-morning on Saturdays! What’s the intended shopper experience in this? Or is it “off the radar” altogether?
Given the size of the Boomers, it would be a mistake to ignore the opportunity that this age group offers. They are different than the generation before them as they age and although there was financial loss felt during the downturn by this group, there is still spending power. I think it is a mixed bag in terms of taking enough steps to accommodate older shoppers — some retailers are paying attention while others are ignoring the needs of this shopper group.
I do all the grocery shopping. I am always struck by how poorly laid out a supermarket is for seniors with products on high shelves and junk in the aisle at all hours at the place I shop most, Waldbaums.
Seniors expect a higher standard of courtesy and time to make decisions on their purchases. A minimum wage flunky reciting canned speech will turn them off. Savvy stores will gauge the need for more than one-on coverage in mornings and during the times that seniors like to shop.
Not according to a recent exchange with a Fortune 50 retailer. This particular retailer proudly promoted a 10% discount on purchases made by our military veterans. The father and honored WWII veteran of a colleague recently visited this particular retailer and purchased some items. At the check out, this gentlemen reached into his wallet and proudly presented his laminated military card from the ’40s! Unfortunately both the checkout employee and the manager of the store questioned the validity of the identification and only after pressure was applied, did they honor the discount.
They retailer had not done their research with regard to “our greatest generation” and what the military had issued in the ’40s and included that into their overall policy. Even after bringing this to the attention of executives at the retailer along with their ‘fire drill’ attention to correct the situation, not only did they never contact the gentlemen and issue an apology, the same thing happened on a subsequent visit!
This is a classic case of corporate policy getting in the way of doing the right thing for the customer. Retailers: make sure you do homework and are thorough before crowing too loudly about your promotions, especially when it touches your veteran and senior customers.
Seniors are a nasty proposition. In a retail world that’s avidly and energetically moving to new ways and new media to reach consumers, seniors stubbornly watch television and feel uneasy with new media. And that’s not a situation that’s really subject to change.
That said, there are plenty of simple tactics that retailers can deploy to attract seniors. It’s important to remember that for many with fixed income, price is an extremely sensitive issue, and retailers that emphasize price are more likely to pull seniors into their stores. In addition, since seniors do not make the huge basic purchases of life’s necessities, manageable sizes make more sense to them. But making signs seeable, explanations crystal clear on such things as self-checkout and other simple things like that are ways to attract the elderly.
It’s not just the retailers, but the manufacturers too. Both are focused on the perceived high spend value of the family and lose sight of the true value of customer loyalty.
Understand your loyal customer/consumer and meet their needs…whatever their age!
No. This is one of the largest opportunities (marketing to seniors) which retailers still do not understand. Simple marketing efforts like special senior discounts, and then marketing these, are a great start. Accomodating seniors also means embracing their lifestyle choices, product choices and personal issues. These include magnified text and prices, products which reflect a “senior” lifestyle, as well as stores which are easier to navigate, communicate and embrace this segment (no tall shelves), easy to read product placement and POS, etc.