How will single America shape the future of retailing?

For the first time since the government began counting how many Americans were single and married, the number of people sans-spouses topped those with them.

According to two new reports, one by Yardeni Research and the other by CityLab and the Martin Prosperity Institute (MPI), the percentage of the U.S. adult population that is single is either 50.2 percent or 51.2 percent. Yardeni Research used figures from the Bureau of Labor Statistics for its analysis while CityLab and MPI analyzed Census Data.

The shift is quite startling when you consider that only 37 percent of the population was identified as single when the Bureau of Labor Statistics published its first findings in 1976.

According to CityLab and MPI, there are 27 states where singles make up more than half the adult population. Louisiana and Rhode Island have the largest percentage of singles at 55.7 percent while Utah, at 43.7 percent, has the lowest.

Single people make up more than half of the adult population of 46 of the 51 largest metropolitan areas in the U.S. New Orleans has the biggest percentage of singles at 58 percent, followed by Memphis (57.7 percent), Miami (56.1 percent), LA (55.8 percent) and Buffalo (55.1 percent).

Not surprisingly, college towns have the highest percentage of singles. At the top of the list is Gainesville, FL, home of the University of Florida. Ithaca, NY (Cornell and Ithaca College), College Station, TX (Texas A&M), Tallahassee, FL (Florida State and Florida A&M) and Lawrence, KS (University of Kansas) follow.

Edward Yardeni told Bloomberg News that the rise of singles has significant economic implications. Singles are more likely to rent than own homes. They also, generally speaking, have fewer expenses than married people with children.

One way singles are cutting down on expenses is to live at home well into their adult years.

Eric Klinenberg, a professor of sociology at New York University and author of "Going Solo: The Extraordinary Rise and Surprising Appeal of Living Alone," told PRI, "People are spending a big chunk of their lives — much of the 20s and even into their 30s, increasingly — becoming a grown up. They’re investing their time in their job, they feel anxious about their career and they’re having a very difficult time moving into that next stage of what we’ve traditionally thought of as grown-up life."

BrainTrust

Discussion Questions

How is the rising percentage of single people influencing retailing today? What are the implications for the future?

Poll

12 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments
Liz Crawford
Liz Crawford
9 years ago

I have been fascinated with this phenomenon. There are several implications. Just to name a few of the obvious ones:

  • The Big Grocery Stock-Up Trip is dying—grocers and CPGs need to focus on single-serve occasions and casual adult get-togethers.
  • Stock-up trips may become the purview of the Latino family.
  • Pack sizes need to scale to singles.
  • Ready-to-eat offerings will rise.
  • Grocerant formats will rule the future (immediate consumption AND take-away food for future consumption)
  • Valentine’s Day should open up—platonically—to include friends, family and pets (as well as a self indulgence holiday—spa days, etc.)
  • Smaller-footprint retail formats will rule in multiple categories. A migration to urban areas and a reduced need for larger pack sizes will spell the era of express formats.
  • Fewer gatekeepers in the shop mean that personalization in shopper marketing programs will be easier to execute (when the shopper is the consumer).

These are only a few of the implications. We’ll be writing about this for years to come.

Ralph Jacobson
Ralph Jacobson
9 years ago

This trend is having, and will for the foreseeable future have, an enormous effect on CPG companies and retailers alike. Entire product categories are evolving to meet these consumer demands. Convenience foods, etc., are on the rise, while traditional specialty retail, like formal business wear, are having to adapt their assortments in order to continue to thrive. Food shopping trips will tend to be more frequent and smaller in transaction size. The implication here is that grocers need to respond with their service levels during peak times. For instance, express POS queuing is a big challenge already.

In other areas, will single-family home purchases slow down? That will trigger a significant change in all the products that move with the home market.

Yes, this is a big trend that will truly shape the future of retailing. I wonder how the rest of the world will be trending in this regard.

Anne Bieler
Anne Bieler
9 years ago

The population is also shifting back to urban centers—retailers are moving into these city locations with small-format stores. Walmart Neighborhood Market is on track to have 500 stores by mid 2015; Target Express and others are moving in as well. Walgreens is opening new city locations with a much broader assortment of foods and household goods. Dollar stores serve city neighborhoods as well. As discussed, the focus for these stores will be smaller sizes and convenience. There are opportunities for retailers who meet the new expectations of single households and win their loyalty.

Tom Redd
Tom Redd
9 years ago

Single people and spending. Many implications, but some of big ones will be specific to areas:

FOOD: Packaging, serving sizing and brand. It’s estimated that singles are even stronger brand followers—no political issues with partners to fight with about which brand. In terms of pricing/promo, with lower expenses this group may not be the coupon hunters.

ENTERTAINMENT: Big area and estimated that many are the online, at home type. Looking for what they can stream, game on, etc. This is the market for the new gaming space. Estimated that many of them are gamers of some type.

APPAREL: One sub-segment of the group will be trendy and the other will be basic, habitual. Same old same old. No one pushing them to up-style or change. Need to target both groups.

Regarding marketing, it is very easy to influence a single mind vs. a married mind. Push for them! They will spend!

W. Frank Dell II, CMC
W. Frank Dell II, CMC
9 years ago

The impact on retail depends on product categories offered. Singles eat out more than married people. Men’s apparel is more likely to be purchased by males than females. Renting reduces the furniture purchases, hardware and home repair. Better quality jewelry will have lower sales by singles. What we are not sure of is if this is a permanent change or a delaying trend. Over the years we have seen the average age increasing for marriages. The Great Recession and college loans have slowed the natural process.

Jerry Gelsomino
Jerry Gelsomino
9 years ago

Convenience! When my spouse travels for business, it’s impossible for me to take care of all the things in my home that we normally share duties with; cooking, cleaning, care for pets and children, shopping, repairing, etc. Singles need convenient, affordable and responsive help to accomplish all their duties and responsibilities in life. A great opportunity.

George-Marie Glover
George-Marie Glover
9 years ago

There are a variety of different categories of single adults:

  • College students
  • Young adults living with parents
  • Young professionals on their own
  • Divorced with children
  • Divorced with no children
  • Mature and never married.

There doesn’t seem to be a one-size-fits-all solution. All of these have different needs and desires. There’s no simple solution.

However, I will agree that CPG manufacturers have challenges ahead of them. Single and small households need better selections of package sizing. Unless you bake, it takes a long time to go through a pound of butter or a five-pound bag of flour.

On the other hand, buying just the amount you need from a bulk container may be a good option. Grocers may be able to better market these sections to singles who may buy the amount they need without worrying abut waste and spoilage.

Craig Sundstrom
Craig Sundstrom
9 years ago

Not to spoil a good story here, but I’m not sure the studies have done enough to differentiate between “single” and “unmarried,” i.e. how are unmarried couples categorized?

I’m also surprised by the large number of respondents (58% as I write this) who see this trend as “somewhat negative.” My initial though was more singles > more households > more spending on housewares, travel, etc. I’m wondering if the majority aren’t expressing a moralist’s rather than a retailer’s opinion. Of course it’s also possible to argue the households are greater in number, but smaller and poorer (than would be 2 income households), so the demand for high-ticket items like furniture, appliances and DIY will be diminished.

Tim Moerke
Tim Moerke
9 years ago

Ralph makes an excellent point about the effect of fewer single-family homes being purchased—this will have significant implications for home improvement retailers if fewer people are purchasing appliances, paint, power tools, and so on. They may have to pivot away from the homeowner as their primary customer and instead towards building managers, contractors, and other professionals.

Gordon Arnold
Gordon Arnold
9 years ago

The opportunity to collect increased market share and higher margins are on the services side of the retail industry. Single men and women living on their own all have one very serious shortage: time. This is where there is opportunity to add margin rich services to discounted commodities. Those that have delved into this market are doing well if they provide the right types and amounts of services for those in need of time savings or reduced risk factors and are willing to pay a fair amount for them.

Security companies are giving away commodity products at around cost for an opportunity to bill monthly at an acceptable service charge to a growing customer market. So too are the entertainment and communication companies. Much to learn from these retailers for those with imagination and an open mind.

Kai Clarke
Kai Clarke
9 years ago

Singles today are more ego-centric, tuned-in and turned on to their impulsive wants, rather than their needs. This has heightened demand for low-touch, immediate gratification goods and services like fast food, eating out in general, renting vs. buying homes, and increased the amount of debt that these single americans carry on their credit cards. These singles become the largest driver of purchasing decisions during the key holiday season, which also accounts for their impacting purchasing non-home purchases throughout the rest of the economy. This will continue to grow as young singles stay longer in the nest, and divorce rates rise, as well as older couples continuing to live longer (and one of them dies before the other-thus creating an instant single person).

Kate Blake
Kate Blake
9 years ago

Singles also include divorcees and the widowed. It’s not just a term for the young and unencumbered. They may still have dependents and responsibilities.