Supermarkets Struggle to Bring in Millennial Shoppers

The younger generation are using a plethora of services to fill their grocery baskets.

October 31, 2016

NEW YORK CITY – Grocery stores have been trying to capture the millennial shopper, who has proven to be much more elusive than previous generations, the Wall Street Journal reports. Baby boomers have long brought massive grocery lists to club stores and supermarkets, but younger consumers prefer to spread their grocery shopping over several trips to different stores, such as online grocery services, convenience stores and discount retailers.

“I don’t think we’ve seen shopping change so dramatically ever,” said Marty Siewert, senior vice president for consumer and shopper analytics at Nielsen. “Those things in the past that have been real drivers for grocery in terms of freshness and quality aren’t the key drivers for millennials.”

The numbers show the shift: shoppers between the ages of 25 and 34 shelled out $3,539 on average for groceries last year, around $1,000 less than people in that age bracket spent in 1990, according to federal data. Overall, consumers purchased $4,015 in food for home consumption on average in 2015. Couple that with older baby boomers slashing spending at supermarkets, and grocery stores are finding themselves in a real pickle.

Some grocery stores are turning to technology to win over millennials, such as offering smartphone apps to place orders, and partnering with delivery services, such as Instacart. Some analysts predict the industry will go through some consolidation before more of those in their twenties and thirties have kids and return to grocery stores in larger numbers. “What they buy may change, but the value is going to come back,” said Diana Sheehan, Kantar director of retail insights. “It’s just going to be a few years later than expected.”

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