Through a special arrangement, presented here for discussion is an excerpt from a current article from the Emerson Advisors blog.
According to The NPD Group, women's apparel rang up over $100 billion last year. So who's buying this apparel? According the Census Bureau, there are over 105 million females in America between the ages of 20 and 75. The Boomer portion of this population (born between 1945 and 1965) represent slightly over 40 percent of the total. With an average age of 55, this is unquestionably the segment with the largest amount of disposable income. Obviously a clear target of apparel manufacturers and retailers, right? For four-wall retailers in particular, this should be a prime demographic.
Really?
According to a recent survey by VibrantNation.com, a leading online community for successful women over 50, over two-thirds of the respondents stated that they are purchasing their apparel online, with 13 percent of them buying online exclusively. The primary driver of this move - lousy service. Over 84 percent found four-wall sales associates to be "indifferent, inexperienced, invisible, or downright rude while 32 percent perceive an age bias from younger associates." As Stephen Reily, CEO of VibrantNation said, "The irony is that these women are highly desirable clothing customers with not only great spending power but time."
Then there's the merchandise itself. When you think about recent fashion trends - hip-hugger pencil leg denim, bare midriff tops, etc., it's hard to imagine that the Boomer demographic was a prime consideration. There's no question that the Boomer women are extraordinarily fit for their age, but hey, gravity always wins in the end.
At least one four-wall retailer seems to recognize this opportunity, albeit coming from the other end of the spectrum. Talbots, the Hingham, MA specialty retailer recently announced that it was reworking its merchandise assortment to focus on "women 35 and older." It appears that it had conducted an internal survey of its over-65 customers who opined that the current assortment was for someone "older." (Ouch!) Reaching out to a younger customer while retaining an existing customer is no small task, one that Talbots tried (unsuccessfully) once before. The good news is that they are in solid financial shape and are now led by a well-respected veteran of the women's apparel market, Trudy Sullivan. It will be interesting to see how this works out.
The reality is that, while the Boomer population is definitely spending less, they are still the largest market out there with the highest absolute disposable income. This is a big opportunity in an otherwise grim environment.
Discussion Questions: What's missing in current offerings for women Boomers? Is any age bias from younger store associates at apparel retailers a serious problem in reaching women Boomers? Which retailers are doing a best job targeting women Boomers?