NPD: Most Millennials Spend in Brick-and-Mortar Retailers

Port Washington, NY–Although they have grown up with the Internet as a crucial part of their entire lives, the Millennial Generation still shops and spends more in brick-and-mortar retail locations.

According to a new report, Winning the Fight For Millennial Shoppers, from The NPD Group, Inc., 81% of Millennials’ retail spending occurred in brick-and-mortar stores, compared to only 19% online.

More than half of Millennials (53%) shop in-store during a typical week. Even though this group of consumers shops in-store often, they don’t always buy. Indeed, Millennials have the lowest shopping conversion rate of all generations at only 57%.

Shopping Conversion Rate By Generation

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Source: The NPD Group, Inc. / Shopping Activity Services / May 2012 – April 2013
+Shopping Conversion Rate is NPD’s measure of the percent of shoppers who make a purchase

“Millennial shoppers have the lowest shopping conversion rate because they are the most selective as well as the most economically challenged,” said Marshal Cohen, chief industry analyst at NPD.

Value-oriented retailers within the dollar store, second hand, drug store, and off-price channels, who appeal to Millennials on tight budgets, are getting more Millennials into their stores.  But dollar stores and second hand stores have also been more successful than other channels at converting Millennials to purchase this year.

“Millennial shoppers are the most elusive generation and the most challenging to keep engaged. In order to get more Millennial consumers in store, retailers need to understand how Millennials’ shopping habits differ from other generations. Previous generations were more easily impressed by marketing and advertising strategies. With this group you must have a strategy to grab their attention in- and out-of-store,” added Cohen.

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