Baby Boomers may still be an important retail segment, but Millennials are now larger in number. Millennials will be around longer, too, so if your store isn’t catering to them, you may find your future at risk. To attract this younger generation, you will have to re-think your marketing and merchandising strategies, because Millennials have very different shopping habits.

Owning things and feeling “settled” define older generations, especially Boomers. Millennials, on the other hand, are all about experiences. They’re mostly urbanites, looking for action and newness. They want to surround themselves with the latest technology. They like entertainment and travel, and especially want value, convenience and quality, without the high price tag. 

The new mall

Although big discounters are still profitable, traditional retailers are closing stores right and left, because they are not relevant to Millennials. The empty shells of their stores – mall anchor stores and downtown locations alike – are attracting small, temporary pop-up stores. Millennials love the spontaneity and exciting sense of urgency, as well as the greater selection.

Some retail giants are downsizing to mimic this trend, at least to some degree, offering fresher merchandise selections and faster service. Walmart Express, Walmart Marketplace, and City Target are good examples.

The new grocery store

The difference in Millennials’ shopping habits is equally apparent when it comes to food, and the entire grocery supply chain is scrambling to catch up. Millennials generally aren't loyal to a grocery store brand or to individual product brands. They’re looking for fresh, healthy foods, not the packaged goods that have been staples for decades. Buying locally-produced items feeds their interest in sustainability and social conscience.

Not surprisingly, that means they shop for food more often – 4.1 times per month compared to 3.6 times for boomers. And they buy from a wider variety of sources, because they value flexibility and convenience. That might be a mini-market or the grocery section of Walmart or Target. They order from food delivery services or order online from AmazonFresh. 

Savvy grocers are responding by cutting back on center-of-store product lines so they can expand fresh-food sections around the perimeter – meat, dairy, produce, deli. Think Trader Joe’s. Or Whole Foods.

Appealing to new shopping habits

A recent article in Forbes notes that “retailers are losing the millennial marketing game.” But you don’t have to. Once you understand what this generation wants (and doesn't want), you’re prepared to speak their language.

Retailers know that customer experience is critical today. Shopping has to be easy, personalized, enjoyable, and seamless across online and in-store operations. (Both are essential for any brand, because each offers different advantages for shoppers. Millennials want to shop online and in-person. They want to buy in person and online.) 

While Millennials as a group have notable shopping habits, this generation is also the most racially diverse and represents lifestyles from teens-in-school to married-with-children. They are your store’s future, if you choose to cater to them.