Changing Demographics and
Consumer Patterns
Consumers Over 55: Silver Shoppers
Provide a Golden Opportunity
Research Team
Richard Hyman, Verdict Ltd
Neil Saunders, Verdict Ltd
Dr Hayley Myers, University of Surrey
Dr Margaret Lumbers, University of Surrey
Changing consumers are an important part of ‘The Future of Retail Property’ programme of research. One aspect of consumer change is the slow ageing of UK society, but this is only one part of a complex blend of economic and social factors that are shaping consumer needs, wants and actions. The BCSC has already invested a substantial amount of money in researching these issues. However, an update with fresh insights and detail is required.
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Objective
Consumers are the lifeblood of shopping places, but their needs and aspirations are often taken for granted. We are already witnessing a change in emphasis on a range of fronts, the beginning of a transformation in how, when, where and why people go shopping. Ever changing consumer behaviour and evolving retailer space requirements could render some existing shopping places less well equipped to cater to both consumer and retailer demands alike, while new shopping developments will have to take into account a whole range of differing issues. This project seeks to address how consumers are changing and what the likely impact will be on the future of retail property.
Background to the research
From a shopper’s perspective a shopping place which performs well is one that meets their needs and/or expectations of a particular shopping trip and makes them want to visit it again. Where there is a choice of shopping places to visit, the subjective assessment of ‘performance’ may begin even before the shopper has left home. People will weigh up which centre will best meet their requirements for a particular trip. So, how accessible is the centre? Can they park easily and cheaply? Once inside the centre, are the shops inviting and attractive enough to keep them there for a few hours and enable them to purchase what they want. A well performing shopping centre from the consumer’s perspective will be influenced by the mix of shops (together with their range and choice of goods), catering and other leisure activities, opening hours, the staff (attitude, knowledge, service levels), provision of customer services such as information points etc.
Consumer behaviour is continually evolving and the world is becoming smaller. Consumers are becoming increasingly fickle in terms of their shopping patterns. The population is ageing across most of western Europe, but age is increasing a state of mind – you are as old as you feel and with it consumerism is changing. Fundamental changes are underway which will have an impact on retailing and how shopping places are designed. Consumers are increasingly addicted to change and want more balance in their lives (work/life), there is more competition for their spend – more is spent on leisure and holidays and less on retail. Consumers have shifted from a simple given identity to a complex self-made one comprising different roles, e.g. David Beckham switches between being a professional footballer, fashion icon and father. Consumers want to improve their lives and themselves. Media influences are having an impact in changing consumers’ home environment. Consumers are more focused on learning for life. In general consumers want an enhanced quality of life – most of us have enough stuff. This creates demand for a rather different retail environment in the future.
Questions the research must answer
- How are demographics likely to change over the next ten years?
- What are the major influences on consumer behaviour in terms of lifestyles and aspirations?
- How are spending patterns likely to change?
- Will the current ‘pensions crisis’ have a significant impact on consumers’ retail spending potential? What is the impact of proposals for people to work longer?
- How can changing consumer needs and expectations be accommodated within future shopping places?
- How will they affect how shopping places should be marketed and promoted?
- Will they affect the location of shopping places?
- Do appropriate tenants exist to meet the changing expectations of consumers in the future?
This research will dovetail with the detailed research on the needs, aspirations and behaviours of third age shoppers being carried out by the University of Surrey as described below:
The UK has an increasingly aging population, but is the shopping centre industry sufficiently prepared? The University of Surrey research project questions the readiness of shopping centres in addressing the needs of third age shoppers.
Aging consumers have different needs and desires, but how are these translated by the shopping centre sector? The grey consumer has grown up with purpose built schemes but centres are often perceived as environments for the young and so to what extent will centres need to adapt in order to keep this important consumer group? While considerable research has been conducted on the grey consumer and food retailing there is a distinct lack of information when it comes to non-food retailing.
The ‘Third Age Shoppers’ research project seeks to inform the retail property community in order that shopping centre investors, developers, managers and tenants have the relevant information to decide the best strategy in key areas such as:
- Tenant mix analysis – how will demand for specific brands and product categories, eg coffee shops etc, be impacted by aging consumers?
- Centre ambience – relevant design, style, mall furniture, landscaping etc.
- Access – to and within centres, location, car parking eg safety.
- Dwell time – how long and when do grey consumers shop?
- Leisure – is the shopping experience alone enough of a pull for the baby boomers?
- Marketing and PR of centres – how to attract the grey consumer, eg specialist events and promotions.
- Technology – to enhance centre attraction as well as operational management.
