Trend
A key trend is facing the global retail market regarding shifting demographics. Although the baby boomers have been the key generation that defined the retail market, they are ageing and being replaced by the Generation Y households (PWC 3).
Relevance to retail
The ageing of the baby boomers is increasing the retailers’ focus on a young generation defined by vitality. The generation is technologically savvy, hence taxing the retailers to adapt formats and channels to their needs and abilities (Oracle 3). In that respect, the traditional retailing that involve physical stores is being challenged to adapt better ways such as online platforms that serve the young generation. Also, the generation is defined by a shopping pattern of seeking variety and personalization, hence the need for the retailers to adapt mixed formats where personalization and customers’ input matters (Oracle 6).
Justification for impact
As some of the baby boomers approach 55 and others 70, the retailers experience an impact given that the generation is being replaced by the generation Y that is approaching the prime household age and presenting new shopping behaviors (PWC 5). For instance, in the UK where the population is getting older as described by a recent study by the Retail Research Centre, it was predicted that more than 62,000 stores could close in five years. That is considering the increasing focus on online shopping that was forecasted to account for about 22% of the retail shopping by the year 2018. In the study report, it was also estimated that the retail stores in the UK could decrease by 22%, which would double the 2015 vacancy rate for the stores (RBS 4).
Works cited
Oracle. “Generation Y: The Builders of Tomorrow’s Business2009.” An Oracle White Paper, (September 2009). Web. 03 May 2016. http://www.oracle.com/us/industries/financial-services/gen-y-builders-wp-163349.pdf
PWC. Retailing 2015: New Frontiers. 2007. Web. 03 May 2016. https://www.pwc.com/cl/es/publicaciones/assets/retailing2015.pdf
RBS. Retail 2023: Trends affecting retail strategy over the next decade. 2013. Web. 03 May 2016. http://www.rbs.co.uk/content/corporate/downloads/20130RBS_Retail_Report.pdf
