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How do Millennials Shop?

Wednesday, September 21, 2016 > 09:16:35
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(Canadian Grocer)

Brandspark study finds millennials are looking for a grocer that offers the lowest everyday prices

Most shoppers want value for their money, but millennials are less likely than older consumers to search flyers and promotions before a shopping trip, according to BrandSpark International.

Nearly 40,000 Canadians in the millennial, Generation X and baby boomer cohorts were surveyed as part of the BrandSpark Canadian Shopper Study, conducted online in December 2015 and January 2016.

Recently released findings show 67% of millennials study flyers, promotions and discounts before their shopping trips, compared to 75% of Gen X and 79% of baby boomers.

The study also found millennials are substantially less likely than other age groups to check printed flyers before their shopping trips, and the gap is not made up by their use of digital coupons. Only 24% of millennials checked the paper flyer/circular in advance of their last shopping trip, compared to 37% of Gen X and 51% of baby boomers. Twenty-eight per cent of millennials checked the online flyer/circular before their last shopping trip, compared to 25% of Gen X and 23% of boomers.

Philip Scrutton, director, consumer and shopper insights at BrandSpark International, said millennials still wanted the best value for their money (86% agree they “feel proud when I get great value” versus 87% overall), and they make effort to find that. For example, 54% shop multiple stores on their household trips to get the best prices versus 56% overall.

“But their flyer habit isn’t quite as strong,” said Scrutton. “Still 67% cite it as a regular habit before trips, but that is significantly lower than the 79% of baby boomers who say the same. This means that millennials may be more open to new communication channels from the retailer, like email and digital flyers, but value will still be a primary motivation to engage.”

Grocery store preferences

When asked for the top reasons for shopping at a grocery store, the most important consideration for all generations was that the store is close to where they live, with 46% of millennials, 51% of Gen X and 47% of boomers agreeing it’s important. At the bottom of list was “has friendly and knowledgeable and service” (4% of millennials, 6% of Gen X and 8% of baby boomers) and “offers in-store coupons” (9% of millennials, 7% of Gen X and 4% of baby boomers).

More than one third of millennials (36%) said they were looking for a grocery retailer that offers the lowest everyday prices, compared to 34% of Gen X and 31% of baby boomers. In addition, 22% of millennials agreed having a loyalty program enabling discounts was important, compared to 29% of Gen X and 29% of baby boomers.

The study also found there was less resistance to buying groceries online among millennials. One quarter of millennials indicated a high interest in online shopping if their regular grocery store offered it, compared to 22% of Gen X and 14% of baby boomers.

“All shoppers want what they perceive as good value, they want great-tasting food, and are somewhat concerned about health,” said Scrutton. “Millennials and Gen X both value convenience, but are less willing to pay for it than are baby boomers, which has to do with life stage and financial realities,” said Scrutton.

Mobile shopping apps 

Millennials are the most active users of mobile shopping apps (41%), with Gen X close behind at 36%, followed by baby boomers at 21%. The leading reasons for using shopping apps are similar across the generations. Sixty-four percent of millennials use an app because it saves them money, compared to 59% of Gen X and 52% of baby boomers. That’s followed by “easy to use” (63% of millennials, 59% of Gen X and 52% of baby boomers) and “it helps me decide what to buy” (38% of millennials, 32% of Gen X and 28% of baby boomers).

Loyalty programs

On the loyalty front, 34% of millennials said they collected loyalty points on their last in-store shopping trip, compared to 36% of Gen X and 45% of baby boomers. While millennials collect points less often, they experiment more with new products and use their smartphones for shopping more often. For example, 17% of millennials used their smartphone for shopping-related purposes, compared to 15% of Gen X and 5% of baby boomers. And 18% of millennials purchased a new product they hadn’t bought before, compared to 13% of Gen X and 10% of boomers.

Personal Care and Beauty Products

Where millennials shop for personal care and beauty products closely mirrors other generations, with the exception of Sephora and Amazon. Shoppers Drug Mart/Pharmaprix came out on top, with 56% of millennials, 57% of Gen X and 55% of baby boomers regularly shopping there for personal care products. In second place was Walmart (57% of millennials, 56% of Gen X and 45% of boomers).

Thirteen per cent of millennials regularly shop for personal care products on Amazon, compared to 10% of Gen X and 6% of boomers; and 16% of millennials regularly shop at Sephora, compared to 8% of Gen X and 6% of boomers.

This article first appeared on MarketingMag.ca


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