Female millennials are giving traditional retailers the cold shoulder.
According to a survey by Wolfe Research, that group’s lifestyle and shopping choices don’t bode very well for brick-and-mortar merchants.
Here’s why: Respondents, born between 1982 and 2000, appear less enamored with getting married and having children than past generations, the poll showed, and the resulting downturn in household formation could have a chilling effect on consumption.
Moreover, millennial women prefer to purchase products online and have them delivered to work or home, rather than pick them up at the store. That flame, the Wolfe team suggests, is being fanned in large part by Amazon’s ever-speedier Prime deliveries and its Dash reorder buttons.
All this translates into lower revenue for full-line retailers for the foreseeable future.
Wolfe’s advice? Create a brand that resonates with female millennials and continue to invest in digital marketing and infrastructure.
And while brick-and-mortar won’t go away anytime soon, the analysts advise that things better be ship-shape when millennial women do come a-knockin’ — meaning a full selection, no out-of-stocks and competitive pricing.
So where do CE and appliances fare in all this? According to Wolfe, A/V and computers, along with furniture and used cars, are the rising stars of consumer expenditures, while white-goods, a category associated with households, are not.