Study: Millennials Spend the Most In Store and Keep Certain Retail Models Alive
What: First Insight has released the results of a study that examined the shopping behavior of U.S. and U.K. consumers, and found that millennials are still the biggest contributors to the success of certain retail models.
Why it matters: Millennials' growing shopping power forces brands to identify the right ways to connect with this generation.
First Insight has published the results of a consumer study conducted in the U.S. and the U.K. to examine shopping habits, purchase behavior, and influences driving purchase decisions. The survey was answered by a sample of more than 1,000 U.S. consumers and 565 U.K. respondents. The study revealed that millennials contribute more than any other generation to the success and longevity of certain retail models, as they tend to spend more, shop more often, and are more open to adopting new retail models such as subscription boxes.
"Where millennials shop, how they shop and when they wear the brands they love are direct reflections of how they define themselves," declares First Insight's report. "To tap into this lucrative group of shoppers, retailers must be able to connect with this generation through the right shopping experiences and unique products at the right price."
The Biggest and Most Impulsive Spenders
According to First Insight's study, millennials in both the U.S. (74%) as well as the U.K. (58%) are most likely to spend more than $50/£50 per visit in-store as well as online. This compares to 71% of Generation X and 65% of Baby Boomers in the U.S., and 42% of Generation X and 38% of Baby Boomers in the U.K.
In both the U.S. and the U.K., millennials have the highest added-to-cart percentage rates both in-store and online. In the U.S., 87% of millennials said they "sometimes or always add items to their carts they weren’t planning to buy when shopping in-store." This compares to 86% and 78% of Generation X and Baby Boomer respondents, respectively. U.K. respondents mirrored these responses closely: 83% of millennials said the same, followed by 76% of Generation X and 69% of Baby Boomers.
Subscription Boxes: A Hit Thanks to Millennials
First Insight's data shows that usage of subscription box services is driven primarily by millennials, as 31% of respondents from this generation are currently receiving subscription boxes in the U.S. versus 21% and 8% of Generation X and Baby Boomers, respectively. In the U.K., 32% of millennials versus 22% of Generation X and 10% of Baby Boomers are currently subscribers.
However, data shows a significant difference between U.K. and U.S. shoppers when considering the longevity of this model. While in the U.S., 32% of study participants intend to subscribe in the next six months, only 13% of U.K. respondents said the same. Also, significantly more U.K. respondents said they “never subscribed” to subscription boxes than those in the U.S. While 49% U.K. Millennials, 63% of Generation X and 84% of Baby Boomers reported they never subscribed to a subscription box service, in the U.S., 33% of Millennials, 48% of Generation X and 64% of Baby Boomers said the same.
Millennials Like to Show Their Love
As the report explains, "Flexing is to wear or display brands to show a personal association with the brand. This can be done to display wealth or status, or to make a statement." One of the study's findings was that sports brands are the most popular for flexing in both the U.S. and U.K., with millennials the most likely to flex all brands across every category. In the U.S. and the U.K., respectively, an average of 23% and 24% of respondents said they are flexing sports brands, while only 17% of U.S. respondents and 21% of U.K. respondents flex luxury brands.
When it comes to items being flexed, people in both the U.S. and the U.K. are flexing clothing the most (57% vs. 51% of U.K and U.S. respondents, respectively), followed by shoes (35% of U.K. respondents and 42% of U.S. respondents), and accessories like watches, jewelry and bags (20% of U.K. respondents and 28% of those in the U.S.)