The 'gold' in Oldies is yet to come

There was a very significant birthday two years ago that went largely unnoticed: The first Baby Boomer turned 50. This event is significant for retailers because that candle and cake ceremony helps signal an essential change in shopper demographics.

In a culture that worships youth, the 50-plus segment already accounts for more than one third of the adult market. And as more and more of those boomers have birthdays, and senior citizens continue to enjoy greater longevity, this older group is growing faster than all others.

Suddenly, tried and true retail strategies in marketing, merchandising, choice of assortments and even store designs may have to be revisited and fine-tuned to address the differing wants and needs of this group.

Over the next 25 years, the number of Americans aged 50 or more will grow by some 47 million to 115 million, according to the American Association of Retired People. By comparison, the number of people aged 18 to 34 will actually decline by nearly 4.4 percent just in the next five years.

"It's not possible to study Americans without being confronted with the graying of America. This change has profound meaning for retailers, especially for the discount industry which now makes its money off the child-rearing families," said George Rosenbaum, ceo of Leo J. Shapiro & Associates, a Chicago-based market research firm specializing in retail shopping.

"This aging of the population will produce increased spending for products and services that make people look young and help them retain their youthfulness. But there will also be increased spending for services that will replace DIY projects, lawn care and other household maintenance tasks," he observes.

In apparel, a demonstrated preference by many older shoppers for the combination of style and value offered by mass merchants could present some new opportunities, along with the need for some adjustments. One industry analyst points out that these older shoppers already account for significant unit volume in apparel sales along major discount store chains.

"These older Americans are better educated and have a higher taste level -- regardless of income. They never understood grunge, heroin sheik or dress-down Friday. And in the same way that young men's clothes are different from those for grownups, older people have different proportions. They require more comfort in the fit, and they also see colors differently," said David Wolfe, creative director for The Doneger Group, a New York-based buying and fashion consulting firm.

"When today's boomers were young, the industry only had one way of sizing, so it had to invent junior sizes, which exist today. Now we have to invent senior sizes, and have some way of identifying them as being for seniors. As for colors, older people see colors more yellowed -- for example, a lime green will appear more garrish," he explained.

While this growing segment will present a challenge to mass merchants that don't want to ignore a huge shopper base, Wolfe also said there are some long-term advantages in meeting the shopping needs of this group.

"Members of the older generation are intensely loyal to their retailers, compared with the notoriously fickle younger generation. These older shoppers will stick with you if you service them. The are not out there looking for the next hot thing, but rather another satisfactory transaction," he added.

So, what adjustments can mass merchants make to attract these older shoppers?

Rosenbaum offered four suggestions that could make for a good starting point:

"First, sell them the merchandise that they want to buy. Look at each department to be sure it includes products that an older person will respond to -- perhaps add new merchandise like home health care products.

"Second, make them feel welcome. Let them know that the store is interested in them, buys for them and wants them as customers.

"Third, offer special incentives like `Tuesday senior discounts,' perhaps phone orders for seniors -- especially in the in-store pharmacy.

"Fourth, circulars have to express that same sense of welcome, but also make the case that there is something for seniors in the store."

COPYRIGHT 1998 Lebhar-Friedman, Inc.
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