us consumers in 2025: what's in store for retailers
TRANSCRIPT
US CONSUMERS IN 2025: WHAT’S IN STORE FOR RETAILERS?
MICHELLE GRANT HEAD OF RETAILING
CONSUMERS IN 2025
SHOPPING PREFERENCES IN 2015
KEY TAKEAWAYS
Source: ThinkStock
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The US consumer will look different in 2025 CONSUMERS IN 2025
Urbanization
Households
Diversity Aging
Income
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27% of Americans will live in the 10 largest metro areas CONSUMERS IN 2025
0
5,000
10,000
15,000
20,000
25,000
2015 2025
‘00
0 p
eo
ple
Population by Metro Area
New York
Los Angeles
Chicago
Dallas
Houston
Philadelphia
Washington DC
Miami
Atlanta
Boston
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Other
Couple w/ children
Single parent
Couple w/out children
Single person
Households without children will grow the fastest
CONSUMERS IN 2025
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0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
2015 2025
‘00
0s
pe
op
le
Population by Ethnicity & Race
Hispanic-other
Hispanic-Black
Hispanic-White
Non Hispanic-other
Non Hispanic-Black
Non Hispanic-White
The US will be more diverse CONSUMERS IN 2025
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50,000
55,000
60,000
65,000
70,000
75,000
80,000
‘00
0s
of
pe
op
le
Population by Generation
Generation Z
Millennials
Generation X
Baby Boomers
The rise of the Millennial and Gen Z cohorts CONSUMERS IN 2025
Generation Z : Born between 1995 and 2009 Millennials: Born between 1980 and 1994
Generation X: Born between 1965 and 1979 Baby Boomers: Born between 1946 and 1964
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13.4
2.0
30.2
24.1
28.9
33.5
27.5
40.4
2025
2015
% of Gross Income by Generation
Generation Z Millennials Generation X Baby Boomers
Millennials will account for 30% of gross income
CONSUMERS IN 2025
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0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
450,000
20
15
20
16
20
17
20
18
20
19
20
20
20
21
20
22
20
23
20
24
20
25
US
$
Average Household Disposable Income
Richest Households
Middle Class Households
Poorest Households
Income inequality will persist CONSUMERS IN 2025
CONSUMERS IN 2025
SHOPPING PREFERENCES IN 2015
KEY TAKEAWAYS
Source: ThinkStock
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Consumer Trends Survey
2015
Location Income Ethnicity Household
Type Age
Is today’s shopping behavior an indication of future behavior? SHOPPING PREFERENCES IN 2015
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Shopping experience
15 to 29 years old
Hispanics
African Americans
Households with kids
Who enjoys the shopping experience? SHOPPING PREFERENCES IN 2015
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Garden State Plaza
(NJ)
• BergenPAC partnership
• Luxury tenants
Westfarms Mall
(CT)
• New app • Exclusive
tenants
King of Prussia
(PA)
• Better dining options
• Indoor skydiving
Shopping centers are evolving
SHOPPING PREFERENCES IN 2015
The New Mall
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74% of Americans say they like to find bargains
Source: ThinkStock
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Brand 2010-15 %
Walmart Neighbourhood Market 236
Nordstrom Rack 111
HomeGoods 82
Ashley Furniture 70
rue 21 70
Dollar General 58
Forever 21 56
7 of the 20 fastest growing brands were value oriented SHOPPING PREFERENCES IN 2015
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0 10 20 30 40 50
$11,001 to $21,500
$21,501 to $43,000
$43,001 to $65,000
$65,001 to $108,000
Over $108,000
US Average
% of Respondents
I Tend to Buy/Shop More at Stores where I am a Loyalty Member
Loyalty programs are important to high income households SHOPPING PREFERENCES IN 2015
#1 US luxury retailer
40% Revenues come from InCircle status members
11x Loyalty members spend more than typical shopper
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Much more influential
• Social media advertising
• Celebrity endorsements
• Social media posts
Somewhat more influential
• Video internet ads
• Onsite marketing
• Ads on mobile phone
• Outdoor
• Geotargeted mobile ads
• Text based ads
Typical influence
• Family and friend recommendations
• In-store advertising
• Desktop ads
• TV commercials
• Radio
15 to 29 years old more influenced by emerging marketing platforms SHOPPING PREFERENCES IN 2015
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459,000 followers on Instagram
110,000 followers on WANELO
102,000 followers on Twitter
64,000 followers on Facebook
8,000 followers on Pinterest
On Tumbler and Snapchat
Shop Jeen knows social media SHOPPING PREFERENCES IN 2015
CONSUMERS IN 2025
SHOPPING PREFERENCES IN 2015
KEY TAKEAWAYS
Source: ThinkStock
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The US consumer will be different in 2025 KEY TAKEAWAYS
New US Consumer
Urban
Households w/out
children
More diverse Older
Generations with equal spending
power
Unequal income
distribution
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Shop in stores
Look for value
Maximize their loyalty
Embrace new technologies
What will future US shoppers do? KEY TAKEAWAYS
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THANK YOU FOR LISTENING THANK YOU FOR LISTENING Michelle Grant| Head of Retailing
@EMI_MichelleG
www.linkedin.com/in/migrant1