Opinion: Why retailers must move fast to understand older shoppers

With retailers now operating in a truly multichannel environment, vying for shoppers both on- and offline, it is more important than ever that they get to know their shoppers, to be able to provide them with a space and an experience that keeps them coming back.

Throw into the mix the fact that the UK has an ageing population, with a greater proportion of the population remaining economically active for longer, and the task of understanding your shopper isn’t so easy.

”At present, it is millennials and Gen Z that are the hotly debated groups, with everything from their relationship with technology to the likelihood of them owning a home being scrutinised”

Peter Cooper

The lines between the traditional demographic groups are blurring and becoming less predictable.

Since every new generation that comes of age has a profound impact on the retail sector, industry experts spend a great deal of time researching and analysing their shopping habits so that brands remain relevant to them.

At present, it is millennials and Gen Z that are the hotly debated groups, with everything from their relationship with technology to the likelihood of them owning a home being scrutinised in order to assess how this will affect the way they shop now and in the future.

Older shoppers

However, with the Office for National Statistics releasing data showing that the average life expectancy for newborn females will rise to 100 in 2064, the spotlight is shifting to older generations, with the number of pensioners – and people working longer – poised to grow dramatically.

Once considered a fairly reliable group with regards to shopping habits, older generations and pensioners will present challenges to researchers.

“The ‘old’ generation will be younger and possibly fitter, both physically and mentally. They will be a more complex group to understand and are unlikely to consider themselves simply as older consumers”

Peter Cooper

Models will be disrupted – the advance of physical age will disconnect with established expectations of ability and attitude – at a time when engaging with the over-60s is likely to become much more important for retailers and retail property companies.

A longer life expectancy will mean, simplistically, that we all have an extended old age. But looking at healthcare advances, nutrition and positive attitudes to self-preservation in this age group, it is anticipated that our expected life stages will shift, so that our middle age starts later, and youth is extended.

The ‘old’ generation will be younger and possibly fitter, both physically and mentally. They will be a more complex group to understand and are unlikely to consider themselves simply as older consumers.

New models

Retail spend from those aged over 55 is already strong and traditional pensioner consumer categories, such as home maintenance and health, are becoming less relevant with a group that is in a younger mindset and in good physical condition.

To make things more complicated, the diversity of household types and family structures in the UK mean that we can no longer categorise people according to traditional consumer groups based on age, class and income, making the ‘average shopper’ a redundant concept.

While it remains unclear how dramatically this demographic shift will modify retail trends, businesses that recognise it early and work hard to understand the habits of smaller and more diverse groups of consumers are likely to be the winners.

• Peter Cooper is director of asset management at Hammerson