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Millennials are shaking up the grocery world with their champagne tastes and beer budgets. Traditional grocers need to take heed, or they risk being abandoned for stores that better meet the unique needs of Millennials. As the largest segment of the U.S. population, Millennials do not exhibit the same brand recognition and loyalty as was the case among their predecessors in the Baby Boomer generation. Instead, Millennials are driven primarily by price, quality, and product attributes, such as items that promise they are organic, healthy, and natural.

Grocers wishing to capitalize on a large and growing segment of the population thus should consider appealing to the specific demands of Millennials. For example, grocers can stock natural and organic products on shelves, next to conventional items, instead of placing the organic options in a separate section. Millennials prefer healthy ingredients, so grocers should focus on perishables and produce, highlighting them in the main entrance to the store, where they are easy to see. And since Millennials cook less than previous generations, grocers should stock up on ready-made meals and ingredients.

With Millennials in charge, traditional grocers may even want to rethink the look and feel of the store itself. Millennials tend to respond more to a warmer, less sterile atmosphere, so grocers should consider making their stores feel like high-quality shopping destinations. Finally, grocers can also take advantage of Millennials’ preference for and comfort with technology. For example, digital coupons can be offered alongside paper coupons and circulars.

By keeping these unique needs of Millennials in mind, traditional grocers can better capture this segment of the market and avoid being left behind.

Discussion Questions:

  1. How can grocery stores appeal to Millennials?

Source: Denise Leathers, Retail Wire, October 20, 2016