Consumer Trends

The March 2010 issue of Downtown Idea Echange addressed important trend changes that will be seen in the 2010 Census information. I will share some of their insights here. Trend information helps all businesses prepare and plan for the future.

After the severe downturn of 2008 consumer spending is edging its way back. Although they do expect very slow retail recovery and little or no retail expansion in 2010.

The new Consumer is conservative and looking for the best value - meaning the best quality for the best price. Primary needs will be met first: drug & grocery stores, moderately priced food service, mass merchandisers and online shopping will begin to recover first.

Downtowns can capitalize on the new value-conscious consumer by providing discounts, promotions, perks such as free parking or other valued perks and highlighting the buy-local connection.

Baby Boomers are no longer the spenders - they are now saving for retirement. Their spending will be concentrated in casual dining, specialty foods, books & music, health & comfort services & stuff for the grandkids.

Other trends to be aware of:
70% of suburban households DO NOT have children
28% of households are people living alone
The Majority of households are now headed by women

To be successful long term, retailers & service providers need to reach the Gen X (30 somethings) and the Gen Y (20 somethings). These groups look for social and entertainemnt outlets and retail that is open past 5pm. Some businesses that attract these groups: taverns, coffee shops, internet cafes, comedy clubs, small music venues, organic foods, game-stops, "cool" second hand stores, eco-friendly items and anything electronic.

One last note to capitalize on - shoppers are increasingly making shopping a part of their daily routine - heading out to lunch and doing errands at the same time for example. Downtowns need to be ready to service this market of locals and non-resident consumers by having items readily available, providing quick, efficient service, and being open at convenient times.

The article finishes by saying: "By understanding and planning a retail strategy around these New Consumers, their new values, and their new shopping patterns, downtowns can better survive the aftermath of this recession and prosper in the recovery."

Downtown Idea Exchange, March 2010, published by Alexander Communications Group, Inc.
www.DowntownDevelopment.com