While the Millennial generation is expected to outspend Baby Boomers by 2017, retailers are underestimating the size and purchasing power of this consumer. That's the conclusion of a new study, What Happens When Millennials Get the Wallet, from Berglass + Associates and Women's Wear Daily.
As part of the study, an online survey, which was conducted in September 2013, queried 121 U.S. business leaders primarily in the apparel, accessories, footwear and beauty sectors, including department stores, specialty stores, home shopping and direct-mail catalogs. Key findings unveiled in the survey include:
"Millennials have different motivations, attitudes and behaviors than previous generations, and retailers need to adjust their business strategies accordingly in order to thrive," said Les Berglass, CEO of Berglass + Associates. "For the first time in several decades, we will see a new member of the C-suite, who will be responsible for driving two-way communication between the Millennial customer and the brand and for developing initiatives that will deliver long-term growth."
Are retailers prepared or unprepared for the impact Millennials will exert on their businesses in the next several years?