Shopping habits change as people get older. As the proportion of older people in the population increases it becomes increasingly important for retailers and manufacturers to adapt to these shoppers.
Linda van Rijn, who is responsible for category management for international consumer panel organisation , investigated how age influences consumer behaviour for her thesis in the Part-time PhD programme at Rotterdam School of Management, Erasmus University (RSM). She found that older people prefer to visit smaller local supermarkets more often, but buy less (even if it costs more), and get less adventurous in what they buy. Her research is useful for supermarket and retail business managers and CPG brands鈥 and also relevant for governments, planners, and consumers. She will defend her PhD thesis, Old Habits Die Easily: Longitudinal Studies on Age-Related Consumer Behaviour Changes, on 19 December.
'Senior consumers exhibit distinct physical, psychological, and behavioural traits that affect their purchasing habits', she explained, 'and the rapidly growing elderly population in Western societies is a significant demographic transformation.' It鈥檚 expected that by 2045, a quarter of the population in the USA and Europe will be 65 or older; it鈥檚 a global demographic shift that presents challenges and opportunities for marketers and retailers. Linda analysed data that tracked households' shopping behaviour over a 14-year period 鈥 long enough to show how increasing age affects shopping habits. She combined this purchase data with demographic information and other data to present a comprehensive and nuanced understanding.
Fewer visits, buying less
In the first part of Linda van Rijn鈥檚 study, she found that older adults visit the supermarket more frequently, but buy fewer items per visit. That pattern holds steady until around age 69, when the frequency of shopping trips begins to taper off. As time goes on, the shopping basket stays small and there are fewer trips to the store: older consumers purchase less.
More loyalty to smaller stores
The second part of her study examined the decline in store loyalty with age, and found that it levels off when shoppers are in their mid-seventies. Retailers might find this surprising 鈥 it appears older generations with long-standing habits and routines are not loyal to particular stores. This becomes more pronounced when consumers reach their mid-seventies. Loyalty for these consumers is influenced by how far away the store is, and how big it is: Linda found that smaller, conveniently located stores generate more loyalty among older people 鈥 they become more appealing as mobility declines. The result is that seniors start switching stores more often, a trend that could overturn assumptions about loyalty in this demographic.
Simplicity and familiarity over novelty
Her third study shows that after the age of 50, people are less likely to seek variety 鈥 their shopping baskets typically contain fewer categories and brands of goods. After this age, consumers are more likely to stick with familiar brands and fewer product categories, suggesting that simplicity and familiarity take priority over novelty. It鈥檚 at this age that the 鈥楤uy one, get one free鈥 (BOGOF) deals start to lose their effectiveness too. 鈥淚t's not that older consumers aren鈥檛 aware of these deals, but their changing priorities mean they鈥檙e less influenced by them,鈥 commented Linda van Rijn.
But they spend more
Older consumers, despite buying fewer products, are still prepared to pay more for their groceries. This makes them a commercially attractive segment, but only if retailers can adjust marketing strategies to meet the needs of older customers. Smaller stores, fewer promotions, and more convenience could be the key to tapping into this market.
Adapting marketing strategies
So what do all these shifts mean for retailers and brands? The message is clear: ageing consumers are a unique and growing market, but they behave differently from their younger counterparts.
As shoppers age, particularly after 70, their shopping frequency and activity decline, but they continue to spend more on groceries, making them an increasingly valuable market. To tap into this opportunity, retailers and brands need to rethink their strategies and consider prioritising smaller, conveniently located stores, optimising store layouts for easy access, and offering products and services tailored to the preferences and needs of this growing demographic.
'My findings suggest that retailers and consumer packaged goods suppliers must adapt their marketing strategies to older generations'
Linda van Rijn
Rotterdam School of Management, Erasmus University (RSM)
Her recommendations for age-related marketing campaigns are:
- Optimise store layouts to minimise walking distances;
- Offer smaller pack sizes;
- Curate product assortments that are tailored to ageing populations.
She suggested that there鈥檚 more research to be done to explore the impact of ageing on online shopping, and the psychological changes that influence consumer decisions. More details about these processes would provide deeper insights for retailers to make strategic adaptations to their marketing campaigns. If brands and retailers don鈥檛 take these findings seriously, they may miss out on capturing the loyalty of a significant and growing demographic.
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