CHICAGO, May 2005 – According to a recently released report by Jones Lang LaSalle Retail and American Demographics, as the Baby Boomers and Gen Y demographic groups move into new life phases, their changing consumption patters will have enormous effects on the overall economy and in particular, the retail real estate industry. The report, entitled “When Cohorts Collide”, analyzes what retailers, mall owners and investors need to do to respond to their evolving needs and how these different generations – and two biggest consumer cohorts – can harmoniously exist at their local mall.
As the largest and fastest-growing age groups in the United States, today’s 78 million Baby Boomers and 74 million Gen Y-ers represent two thirds of consumer spending – approximately $4 trillion per year. The report explains that because the mall has played such a major role in the lives of both demographic groups, shopping centers are now being pressured to provide a single environment that caters to the two generations.
Survival Tools
The report also outlines the specific challenges mall developers and retailers will face over the next decade and the immediate changes that can be made to ensure shopping centers continue to maintain the loyalty and capture the dollars of Baby Boomers and Generation Y. Among the suggested changes include:
- Create specialty retail options for the older women apparel market and fashion alternatives for a maturing Gen Y.
- Cluster similar tenants to reach customers with specific shopping needs.
- Offer new tenant categories that break retail’s traditional boundaries such as gourmet restaurants, health clubs, discount merchants, night clubs or casinos.
- Focus on multicultural marketing.
For a full copy of the report, email Greg Maloney, President and CEO of Jones Lang LaSalle Retail, at greg.maloney@am.jll.com.