©FatCamera via Canva.com
June 19, 2024
Are Grocers Ready for the Aging Population?
Recent research conducted by 84.51º, Kroger’s retail and data science, insights, and media arm, found that people over the age of 65 will outnumber those under 18 by 2034, suggesting adjustments may be required by brands and retailers to meet their needs.
By 2030, all Baby Boomers will be at least age 65.
In reaching the dietary needs of Baby Boomers, 84.51º’s research suggested:
- Fresh staples like milk and bananas are top sellers.
- This generation shows less interest in niche categories such as cider or products made with natural ingredients.
- Overall, prioritizing freshness, convenience, and familiar indulgences aligns with frequent purchases across generations.
In a separate blog entry, Katarina Weil, 84.51º’s lead solution design consultant – customer foundations, said that household sizes may become smaller for some older consumers as children grow up and couples face divorce or widowhood later in life. However, for other older customers, aging brings larger households from multi-generational cohabitation and as younger relatives take on caregiving roles.
An aging population is also expected to make fewer shopping trips, particularly if their household size shrinks. 84.51º’s research shows that shoppers between the ages of 19 and 24 make approximately 34.3% more grocery trips than shoppers ages 75 and up.
“For retailers, this makes in-store conversions increasingly important,” said Weil. “Management of basket sizes and enhancing ease of shopping for seniors should become priorities. For CPG brands, these demographic realities require rethinking product offerings to serve the needs of older adults. Packaging, labeling and ingredients all may need to adapt to changing physical abilities and health conditions. Marketing and advertising must speak to older consumers.”
In an opinion column for Ad Age, Pamela Millman, associate director of integrated marketing at AARP Media, wrote that the over-50 crowd remains “often-overlooked” by food marketers, although the group buys 54% of all groceries in the U.S. and has become more health-conscious and cooks more frequently since the pandemic.
Millman wrote, “Whether preparing meals at home or shopping for groceries at the store or online, 50+ adults are open to new ideas, experiences, products and services, which makes them highly receptive to marketing campaigns that attract their attention.”
University of Hertfordshire research found that older people are facing a “wide range of factors working against them when sourcing and purchasing food.” Beyond nutrition, food shopping’s benefits for older people include offering opportunities for social interaction as the risk of loneliness increases, the research noted.
Among the suggestions from the University of Hertfordshire was introducing “slow” or “relaxed” checkout lanes at set times, something that has been trialed in recent years by many U.K. grocers. The university’s study found that many older people don’t want to be rushed at checkout. The researchers stated, “Older people said they valued the chance to interact with staff or other shoppers.”
Other recommendations included:
- Provide more ample seating areas or rest points.
- Arrange lunch events aimed at older people in in-store cafés
- Invest in staff training or consider setting up “shopping buddy” schemes with volunteers to help shoppers who need help reaching items on shelves or carrying bags out the door.
- Offer some discount alternatives supporting smaller purchases to complement family-focused “BOGOF” deals.
- Provide more foods in smaller pack sizes without financial penalty.
- Address online shopping challenges for those who struggle to leave the house.
Professor Wendy Wills wrote in the study, “Supermarkets have an excellent opportunity to introduce practical and cost-effective measures that support older people to enjoy an affordable diet and maintain a positive relationship with food.”
Discussion Questions
What obvious and less obvious adjustments may be required by grocers and food vendors as the demographic makeup of the country shifts toward an older population?
How may the in-store food shopping experience have to be reimagined?
What suggestions would you add to those cited in the article?
Poll
Loading …BrainTrust
Lisa Goller
B2B Content Strategist
Nikki Baird
VP of Strategy, Aptos
John Karolefski
Editor-in-Chief, CPGmatters
Recent Discussions
More Discussions
How Can Retailers Crack the Gen Z ‘Riddle’?
Gen Z is becoming an increasingly important consumer demographic, but an elusive one to map. How…Does Bath & Body Works’ Scented Holiday Campaign Pass the Sniff Test?
Bath & Body Works is kicking off a new campaign with scent being at the fore…Which Tech Will Solve In-Store Inventory Woes?
Three major tech lineups are looking to solve retail inventory problems. Which is most suited?
An aging population profile will subtly change grocery habits. Smaller portions, a preference for more localized shopping, more navigable store formats, better home delivery options, and more focus on nutrition will all become increasingly important. These shifts have already been taking place in Japan, which has a very old population profile. Companies there are adjusting, including Domino’s which recently introduced a pizza for one. Now, the thing is, at the same time this is happening there will be some older consumers who retain previous habits and other demographics who demand different experiences. As such, the proper response is segmentation in terms of store formats and ranges. This isn’t a one-size fits all market.
The aging population creates real opportunities for grocery retailers to standout for older shoppers. Everyone’s been watching the baby boomers age, so nothing new there, but the fact that grocery retailers have largely ignored this huge cohort is surprising. But therein lies the opportunity. The list of suggestions all have some merit, but the trick for grocery retailers is to narrow the list to the few ideas that can be executed well at stores and that resonate most with their own older shoppers. I would add cooking workshops during slow traffic times where older shoppers who have more time can enjoy a cooking lesson based on items they can find in the aisles – the suppliers of the products featured could help support the events with co-op funding.
It’s a positive that in our recent national study the results clearly found that supermarkets are the #1 most recently shopped place for Boomers for food and groceries. This means continued opportunity for supermarkets with this age group. Then the question becomes how to continue to appeal to Boomers as shoppers. This is where adaption to their needs will require a continued evolution. At present, they give supermarkets especially high marks on friendliness and attitude of store personnel and cleanliness, but there is room to strengthen things like availability of personnel to provide assistance, something that will be more needed as the Boomer population ages.
Grocers are doing fine with the “aging” population, but the real question I have, are grocers ready for the “younger” population?
It seems at present, rather than to get their mainstream store assortment in place for Gen Z, and even still Millennials, they are instead opening separate banners, many which are not doing well enough to have longevity.
As for the aging baby boomers, and soon to be aging Gen X’ers, grocery stores will have an easy time with assortment adjustments because for the most part, the right type of product assortment is already in place. Db
I’ll add a different option: signing up automatically for “electronic coupons” instead of forcing customers to spend a half hour on the grocer’s website ticking various boxes.
This. I saw a lot of this topic today at a big box retailer. Not enough scooters, too far to walk to things, not enough places to sit/rest, and electronic coupons were big topics that i heard in the aisles today. A lot of the older customers now and future don’t want to sign up for something just to get a discount on an item. The smaller servings issue is being addressed at a lot of retailers already, so I am taking that one off the table. The others, though, are big thorns in older shopper’s side. And yet, they are in there at all times of the day, purchasing product. I think they just want to be comfortable doing it.
God, I am so weary of being discussed as part of some weird homogeneous group called “elderly,”, “aging”, and ultimately “over the hill.”
1). Millennials were not/are not homogeneous. 2) Gen Z is not homogeneous. 3) Gen X is not homogeneous.
so maybe accounting for different kinds of people with different needs by training employees to be respectful and helpful would do the job.
I don’t mean to be rude, but this is what’s getting old
PS. Should I remind you that in the US we are living in a gerontocracy and not much is being done about that?
Be careful: you might be accused of being old and cranky! 🙂
It seems my smiley faces get lost
How about I come to Miami and we go shopping together for some of those fine, homogenous polyester pull-on pants? #oy
I love the points you make. Why do we try to shoehorn everyone into some category and assume they are all the same?
You know, not to toot my horn but I said this during the entire era that Millennials were being treated as a new species. They were just kids and a tiny house is more upscale than the way I lived at that age. Now, the Millennials are in their 30’s and surprise! Houses look good, they’re having children and they work real jobs. I’m sure some people will stay in tiny houses. In fact, now people are saying it’s a boomer thing.
I majored in sociology in college. There’s a lot to be said for that kind of background. Gives you a different perspective that would never cause you to make rhinestone encrusted pull on polyesters in any kind of mass way
I agree. As I said in my comment, this is not a one sized fits all market. Sure, some adaptations need to be made, but there are all kinds of different people in every generation. Demographics are an interesting shorthand, but they don’t give the nuance.
Going through many things with my parents’ generation even as I type this, I would say that offering assistance with technology is also key. My aunt and uncle are losing finger dexterity which limits their willingness to use things like mobile coupons – which, they then understand (on a fixed income) they’re missing out on deals and get frustrated. Since we’re largely a tech crowd, it’s a valuable thing to consider, especially because it’s not just a consideration for elderly people, but for accessibility in general. We need to be careful we’re not leaving too many people behind in our rush for what’s next.
The population has been getting older for decades, so this is hardly “news”. Indeed, there has been a long gestation period for developing strategies, and the result (IMHO) is a set of simple, logical ideas; few of them are (even) controvesial , but one caught my eye (Provide more foods in smaller pack sizes without financial penalty.[emphasis added]) Aren’t there reasons – other than simple profit motives – why volume discounts are offered ? Hmmmm. I’m also a little curious when trends conflict: for example Seniors will want to shop more (as a form of recreation) vs. Seniors will want to shop less (and use online options.) Both of these could conceivably be true, but stores may choose to emphasize one more than the other.
After spending the morning reading about Euro/UK and US/Canada schemes to assess & penalize manufacturers for packaging, it would seem there’s a big social objective conflict a-coming if we want seniors to have access to smaller pack sizes.
Segmenting the over-50 crowd by nuanced personas will help grocers and brands accommodate the different needs among this eclectic group. Shopper data can reveal how widely they vary in demographics, omnichannel comfort, media habits and purchasing preferences, so companies can serve them better.
This again? When are we going to stop talking about the aging of America at retail and finally do something about it?
Dr. Ken Dychtwald wrote the book Age Wave in 1990, sharing what to expect when Baby Boomers began to turn 50. He continues to talk about what consumers will need as we age. Did we follow his advice? Nope.
Wegman’s has in-store gatherings and dances, but I have yet to see similar activities offered in any other grocery store. Yet grocers in Europe have been able to provide manned checkouts, and carts with brakes and seats that make shopping easier for older shoppers. But not here; here just talk about it.
I went to a Wegmans movie evening once. It was pretty good! And a nice mix of age ranges from older folks to families with young kids.
For retailers, there are certainly some improvement opportunities. There is a Kroger near us that is within a half mile of two large retirement communities. It’s a huge store, and they are constantly out of scooters (my wife’s parents are living with us, so we notice these things). Also, self-checkout for many older consumers is simply not an option.
But it’s also an opportunity for the suppliers, with options for smaller packaging, larger print, and new combinations for easy meals.
Both retailers and CPG suppliers can do a better job analyzing and listening to various demographic groups. It’s not just the older consumers, but younger shoppers, shoppers with small children, etc., also have different and evolving needs and wants.
Train in store staff to be thoughtful/helpful. Then train the population to stop their poor eating habits. Then move on to the next item on your strategic list.
Today’s poll highlights a clear way to enhance the in-store experience that few grocers have embraced – and that the majority of fellow panelists feel would be the most beneficial: training staff to better assist older customers with wayfinding and product selection.
Grocery retailer mindfulness around other adjustments can help retain and perhaps grow market share within this customer segment:
Store Layout and Navigation: Clear signage and easy-to-follow layouts are essential. Place frequently purchased items at eye level to minimize bending or reaching.
Product Packaging and Labeling: Use larger fonts on labels for better readability.
Rest Stops: Install comfortable seating areas for breaks during shopping.
Consider restrooms with senior-friendly features.
Provide touchscreens or mobile apps for locating products and checking prices.
Offer online ordering with curbside pickup or home delivery options.
Community Engagement: Host events, workshops, and cooking demonstrations to foster social interaction. Collaborate with local senior centers or retirement communities.
Categorizing grocery shoppers by age may not be fair to either the brand/retailer or to the consumer. The shift is coming from physical changes will require more accommodations like steadier shopping carts, wider aisles and more accessible shelf positioning for staples. But the overall needs reflect market trends in healther lifestyles, ready cooked/simplification of meals, even home delivery which takes the burden out of the store experience. I would also focus on the ordering online UX to encourage easier technology use and perhaps incent older shoppers to take advantage of delivery services especially during weather conditions. Yes, many older customers are looking for social engagements, but single younger shoppers may also be open to that. The one thing that affects all age groups is price. Grocers need to make sure they have pricing optimization tools in place to be both competitive and profitable.
One thing would help this somewhat digitally savvy boomer: make the entire online grocery shopping experience straightforward and easy.
Grocers will get it. They have to! And they already have older customers, so all they need to do is adjust to numbers. (It sounds easy, doesn’t it!?) There are plenty of grocers in/near retirement communities that get the older generations. Study and learn from the best who are already doing it.
In time, every grocer around the country will have more elderly shoppers. Of course, retailers should prepare for that now. How? I suggest checking out stores in areas of the country that already have plenty of elderly shoppers. For example, Florida. Study what grocers there are doing in terms of shopper convenience, product assortments, and so on. Then copy them.
All this talk about the insides of stores and not one dot about the outside. Massive parking lots with opportunities to get run down by speeding traffic; the necessity of driving everywhere – and the economic cost of having to keep a private vehicle. Mobility and access is what will keep customers out of your stores! How about more-focused and smaller store locations close-in to where seniors live (ticking off all the key urban design points we talked about earlier this month)?
As a former grocery operator, one of the most fulfilling things we did, as many other independents do well, is having clean and inviting seating, best near food or coffee. Even more welcoming is near windows or with decent sight lines into the life of the store. Inevitably tables get rearranged to meet others, and groups congregate over coffee, a meal or community chit chat.
Often there’s no need for formal in-store events. Just start by creating a warm and inviting space for your customers. They’ll meet each other, make new friends, and build community. Grocers who only build or make space for product sales/ROI are missing out on a golden opportunity.
What differentiates older demographics? Ignoring disposable income, it’s often the cost of their time. Seeing as they are more flexible with their time, it makes sense to leverage that to attract older people in-store when stores are less busy. This kills two birds with one stone since it spreads out traffic and automatically gives participating shoppers a slower, more relaxed shopping and checkout experience. I could be saying this as I’m getting older myself and try to shop off-hours to avoid stores when they’re jam packed 😉 Now if I was further incentivized for my behaviour…
Older people like me want LARGER print on shelves. It is so easy and common to get mislead or deceived by tiny print, especially lower shelves. Is this deliberate deception? If an item is on sale, then the print is larger, otherwise we need a magnifying glass. And I have excellent vision.
The recommendations don’t matter to me.