Why food retailers should target millennials
Millennial shoppers are predicted to become the biggest spenders when it comes to groceries and foodservice, according to a recent CBRE report.
The report shows that millennials are on track to become the top spenders at grocery stores and restaurants within the next 10 years. As their spending power ramps up, CBRE predicts that millennials will start to eat out at full-service and high-end establishments and grocery stores. However, amid the demographic shift, there will still be demand for low-priced food options such as fast casual and fast food.
The food-and-beverage sector is “just as susceptible as others to sweeping demographic changes, which we’ll see influence real estate through formats such as grocery-restaurant combinations, more kitchen-only outlets, and delivery services,” said Melina Cordero, CBRE global head of retail research, in a statement.
At the same time, baby boomers are expected to spend less as they transition into retirement.
According to the report, these demographic changes in spending habits highlight the need for retailers and retail-center owners to analyze and understand their customer base so that they can plan their menus and locations to cater to age group nuances.
“We see consumer preferences influencing many facets of retail real estate, including store location; store design to accommodate delivery pickup or prepackaged meals; and different store layouts to incorporate automated ordering and self service,” said David Orkin, an executive vice president leading CBRE’s restaurant practice in the Americas.