Ah, Millennials. The hot-button demographic continues to impress — and worry — merchants, marketers and executives eyeing the generation to secure needed revenue. Nielsen’s “Millennials on Millennials: Why We Matter” report puts the demographic in the driver’s seat to examine their spending patterns and how they view their future as consumers.
“As Millennials age and progress in their careers, more households will be led by this dynamic consumer group, and their purchasing power will grow with them. Across generations in Canada, Millennials are the most financially optimistic, with 28 percent stating they are better off financially today than they were a year ago,” the report said.
But while they might be in better financial standing, Canadian Millennials are making more purposeful purchases — and making few shopping trips as a result. “In fact, they’re driving trip declines in Canada, making 43 fewer trips than the average Canadian household on an annual basis,” the report explained. “This means manufacturers and retailers face fewer opportunities to capture shoppers at the shelf and influence decisions in-store.”
The good news: When Canadian Millennials do shop, they shop quite a bit. “Millennials spend $55.45 per trip, up $2.11 from last year, and more than $7 above the national average,” the report said.
For brands looking to appeal to Canadian Millennials, appealing to a holistic lifestyle might move the needle. The demographic is shopping less often, but dining out more. “So why are they shopping less? Partly due to their increased trips to restaurants, as Millennials led other age cohorts in trips per capita to restaurants in 2017,” the report said.
The report suggested that brands and retailers broaden their scope of product and services to draw in Canadian Millennials. Partnering with local restaurants and venues for collaborations and partnerships that engage shoppers with in-store events might help. “One strategy involves identifying what Millennials are seeking outside the store and finding ways to meet those desires in store,” the report explained.
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