HOW MILLENNIALS DISRUPT INDUSTRIES - fbicgroup...•Mass-market retailers such as Kroger, Walmart...

1 DEBORAHWEINSWIG,MANAGINGDIRECTOR,FUNGGLOBALRETAIL&[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2016TheFungGroup.Allrightsreserved.

APRIL6,2016

• ThisisourfirstreportintheMillennialsSeries.Weexplorehow this demographic is helping to reshape the grocerysector.

• As millennials age and their purchasing power grows,groceryretailersarebecomingmoreinterestedinappealingspecificallytothisconsumergroup.

• Shapedbytheemergenceofdigitaltechnologyduringtheirformative years, millennials have developed shoppingbehaviors that differ from those of previous generations.Their shopping decisions are often influenced byinformation they found on social media via theirsmartphones.

• Millennials tend tobehealth consciousandprice sensitivewhen it comestogrocery shopping, so retailersmustofferfresh and organic foods, a strong digital proposition andlowerpricesinordertosucceedwiththisagegroup.

• Mass-market retailers such as Kroger,Walmart and Targethave already started to adapt their grocery ranges tomillennials’ desire for healthy and affordable options, andWhole FoodsMarkethas announced the launch of a storeformat—365 byWhole FoodsMarket—that is designed tocatertomillennials’preferences.

Grocery Shopping

New Priorities, new Preferences

D E B O R A H W E I N S W I G E x e c u t i v e D i r e c t o r –

H e a d o f G l o b a l R e t a i l & T e c h n o l o g y F u n g B u s i n e s s I n t e l l i g e n c e C e n t r e

d e b o r a h w e i n s w i g @ f u n g 1 9 3 7 . c o m U S : 6 4 6 . 8 3 9 . 7 0 1 7

H K : 8 5 2 . 6 1 1 9 . 1 7 7 9 C H N : 8 6 . 1 8 6 . 1 4 2 0 . 3 0 1 6

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HOW MILLENNIALS DISRUPT INDUSTRIES


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HOW MILLENNIALS DISRUPT INDUSTRIES: INTRODUCING THE MILLENNIALS SERIES GROCERIES,HOUSING,FURNITURE,CARSANDEXPERIENCESINFOCUS

Millennialsaretypicallydefinedasthosebornfrom1980to2000.Giventhe20-year age span, theymake up a sizeable chunk of the population: FungGlobalRetail&Technologyanalysisfoundthatin2014millennialscomprised27% of the total population in the US and the main European marketscombined; this makes the group the second-largest age segment in thesemarketsafterGenerationX(theprecedinggeneration).

Figure1.GenerationsasPercentageofTotalPopulationintheUSandMainEuropeanMarkets:2014

Generation Z includes people born from 2001; millennials comprises people bornbetween1980and2000;whileGenerationXincludespeoplebornfrom1960to1979andbabyboomersgroupspeoplebornfrom1946to1959.MainEuropeanmarketsincludetheaggregatepopulationinGermany,France,Italy,SpainandtheUK.

Source:Eurostat/USCensusBureau/FungGlobalRetail&Technology

Becausemillennials’agesrangefrom16to36, theyconstituteacustomersegmentthat isofgrowingvalueformostconsumermarkets.Whilemanymillennials have less money and financial security compared with oldergenerations,thisagerangewilltypicallybeinahigh-growthphaseoftheirearnings: Millennials will be developing their careers, moving up theprofessional ladder and settling down into double-income households. Soyearoveryear,theirspendingpowerwillbeincreasing.

Thisdemographic issignificantnotonlyfor itssizeor itsgrowingspendingpower:Millennials’effectonconsumermarketsisdrivenalsobythenatureoftheirdemands,whichtendtodiffernotablyfrompreviousgenerations’.While such a large group is inevitably diverse and complex, there areneverthelessoverarchingtrendsamongmillennials.

Muchofthemillennialsgroupisatthestageinlifewheretheirincomeisrampingupandsotheirspendingisaccelerating.

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• Theyarehighly adept at using technology andare very active socialmediausers.

• They tend tobemore socially conscious thanolder age groups, andareinfluencedbyproductofferingsmarketedasethical,sustainableorenvironmentallyfriendly.

• They are more likely than older age groups to focus on health andwell-being,inareassuchasfoodandphysicalactivity.

• Theyaremoreconcernedwithvalueandbargainhunting,inpartoutofnecessityaseconomicopportunitieshavedecreased.

• Thereisevidencethatmillennialsaremoreinterestedinspendingonexperiencesthanpossessions.

• Similarly, therearealso indications thatsomemillennialsareshiftingtoward renting over owning belongings, from cars to clothes—although this may be influenced by this group’s relative economicinsecurity.

• Oftentime-poor,millennialsare likelytobe lookingforconvenience,especiallywhenshopping.

These preferences and behaviors are substantially affecting product andservicemarketsworldwide,notleastbecausemillennials’spendingpowerisincreasing. Major brands and retailers need to adapt to cater to thedemandsofthisincreasinglyvaluableconsumersegment.

At the same time, established brands and retailers are likely to facecompetitionfromnewercompanies,whichmaytargetmillennials’demandsmore sharply. FromASOS toZipcar,nimbler, tech-enabled rivalsareoftenfocusedon serving this group,potentially chippingawayat legacybrands’currentandfuturecustomerbase.

This series of reports will examine the effect of these trends on fivecategoriesorsectorsandofferstrategicrecommendationsforeach:

• groceries

• housing

• furniture

• cars

• experiences

The first report in our series covers groceries, and its findings confirm anumber of popular views on millennials and food, including that theirdemands for value, health and technology-enabled convenience arechanging the marketplace. But it also challenges some other perceptionsaboutthisgeneration,suchasthatmillennialstendtopreferonlineoverin-store grocery shopping. The report beginswith an introductory, data-richbriefingonmillennials.

FromASOStoZipcar,nimbler,tech-enabledrivalsarefocusingonmillennials,whichcouldchipawayatlegacybrands’customerbase.


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Millennials and Grocery Shopping: New Priorities, New Preferences Asmillennialsmatureandtheirpurchasingpowerincreases,companiesarebecomingmoreinterestedintargetingthemasconsumers.Butinordertoenticemillennials, retailersmust understand what these consumers wantandhowtheirshoppingbehaviourdiffersfromthatofpreviousgenerations.

Source:Shutterstock

Millennialsare individualsbornbetween1980and2000, so thisyear theywill be aged between 16 and 36. Because of the sheer size of the group,theyincludepeopleatverydifferentstagesof life.However,consumersinthis age group have developed features that distinguish them profoundlyfromothergenerations,mainlybecausetheygrewupinaparticularlyfast-pacedsocioeconomicandtechnologicalenvironment,onethathasseentheemergenceofglobalizationanddigitaltechnologies.Inparticular,comparedtopreviousgenerations,millennialshave:

• Different priorities:Millennials tend to postponemarriage and homebuying longer than previous generations did. According to the PewResearchCenter,in2013,26%ofmillennialsages18–32weremarried,compared to 48% of current baby boomers when they were in thesameagegroupin1980.

• Different shopping behaviors: The rise of technology, the Internet inparticular, has profoundly influenced millennials’ lifestyles, creatingdistinctive attitudes toward shopping. For instance, they tend to usesocialmedia to inform their shoppingdecisionsmore than theiroldercounterpartsdo.IntheUS,34%ofconsumersaged18–35appreciateitwhen a brand uses socialmedia to promote itself, compared to only16% of people over age 36, according to the Association of NationalAdvertisers.

Inthisreport,welookatwhatdrivesmillennials’groceryshoppingbehaviorandwhatsuccessful foodretailershavedonetowincustomers in thisagegroup.

Theriseoftechnology,theInternetinparticular,hasprofoundlyinfluencedmillennials’lifestyles,creatingdistinctiveattitudestowardshopping.

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ASIZABLESEGMENTOFTHECONSUMERBASETargetingmillennialsmakescommercialsenseforseveralreasons:

• Millennialsmakeupalargeproportionoftheconsumerbase:In2014,millennials comprised 27% of the total population in the US and themain European markets combined, making the group the second-largest segmentafterGenerationX (theprecedinggeneration). So,bytargeting millennials, companies can reach a significant chunk of theconsumerbase.

Figure1.Generationsas%ofTotalPopulationinMainEuropeanMarketsandUS:2014

GenerationZincludespeoplebornfrom2001;millennialscomprisespeoplebornbetween1980and2000;whileGenerationXincludespeoplebornfrom1960to1979andbabyboomersgroupspeoplebornfrom1946to1959.MainEuropeanmarketsincludetheaggregatepopulationinGermany,France,Italy,SpainandtheUK.

Source:Eurostat/USCensusBureau/FungGlobalRetail&Technology

• Millennials’ income grows fast: Millennials are at the stage of lifeduringwhichtheirincomegrowsatthefastestratetheywillexperienceintheirlifetime.Shapingmillennials’shoppingbehaviorcancreateloyalcustomersinthelaterstagesoflife,whenconsumersareatthepeakoftheirlifetimeearningpotential.

Figure2.AverageGrossIncomeWorldwide,byPopulationBracket:2014

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Millennialsareatthestageoflifeduringwhichtheirincomegrowsatthefastestratetheywillexperienceintheirlifetime.

Source:EuromonitorInternational


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• Millennialsareheretostay:millennials’shareoftotalnationalpopulationsis expected to change onlymarginally in the period to 2026. In countrieswithlowerbirthrates,suchasGermanyandItaly,millennials’shareofthetotalpopulationisexpectedtoshowasmallincrease,whileaslightdeclineisexpectedtooccurintheUSandFrance,whichhavehigherfertilityrates.As such,marketers targetingmillennials today shouldbeable to countonanequallysignificantproportionoftheconsumerbaseinthefuture.

Figure3.MillennialsasPercentageofTotalPopulation:2016vs2026

In2026millennials,peoplebornbetween1980and2000,willbeagedbetween26and46yearsold.Source:UnitedNations/FungGlobalRetail&Technology

INFLUENCEOFSOCIALMEDIAANDYOUTUBEONMILLENNIALS

While previous generations have been heavily influenced by televisedmessages,millennialsarelesssensitivetoTVads,astheywatchlessTVthanprevious generations did. Ofcom—the British communications regulator—notesthatmillennialswatch lessTVthanbabyboomersandthatbetween2004 and 2011, adults aged 25–34 reduced the number of hours theywatchedTVperday.

Figure4.AverageHoursofTVViewingperDay,byAge:UKMillennialsvs.BabyBoomers

Source:Ofcom

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YoungerMillennials16-24 OlderMillennials25-34YoungerBabyBoomers55-64 OlderBabyBoomers65+

MillennialswatchlessTV,buttheyentertainthemselvesthroughwebsites,onlinestreamingandsocialmedia,oftenaccessingthemviasmartphone.

Source:Shutterstock


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MillennialswatchlessTV,buttheyentertainthemselvesthroughwebsites,online streaming and socialmedia, often accessing them via smartphone.AccordingtoOfcom, in2013,87%ofyoungerBritishmillennials (aged16–24) were accessing social media from a smartphone at least quarterly,versus 19%of younger babyboomers (aged55–65). Even the comparisonbetween closer generations is striking: 80%of oldermillennials (aged25–34)wereaccessingsocialmediafromsmartphonesatleastquarterly,versus60%ofpeopleaged35-44.

Figure5.PercentageofPeopleAccessingSocialMediafromaSmartphoneatLeastQuarterly,byAge:UKMillennialsvs.BabyBoomers,2013

Source:Ofcom

MillennialstendtousetheInternettoinformtheirpurchasingdecisions.Ina 2015 survey ofmillennials worldwide by consultancy firm Nielsen, 75%and 70% of respondents respectively agreed that branded websites andconsumer opinions posted online are the two sources of shoppingrecommendationstheytrustmore,precededonlybytheadviceofpeers.

Figure6.Millennials:TrustinAdvertising,byFormat,2015,Worldwide

Basedononlinerespondentsaged21to34in60countries.Source:Nielsen

41%47%48%51%

52%53%55%57%60%60%60%62%62%66%67%68%70%75%

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TextadsonmobilephonesOnlinebannerads

AdsonmobiledevicesSocialmediaadverfsing

SearchadverfsingOnlinevideoads

RadioadsE-mailsIsignedupfor

AdsbeforemoviesBillboards-outdooradverfsing

ProductplacementonTVNewspaperadsMagazineads

BrandsponsorshipsTVads

Editorialcontent-newspaperarfclesConsumeropinionspostedonline

BrandedwebsitesRecommendafonfrompeopleIknow

MillennialstendtousetheInternettoinformtheirpurchasingdecisions.

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Millennials25-34

BabyBoomers55-64

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FOCUSINGONFOOD:THEIMPORTANCEOFEATINGRIGHT

Muchofthepublishedresearchonmillennials’groceryshoppinghabitsandbehaviors is focussedon theUS.Asa result, the followingsectionsof thisreport have a greater focus on American millennials, although weincorporatenotableEuropeanandCanadiandatawhereappropriate.

Millennials have grown up in an environment in which—thanks to theInternet—they have had unprecedented access to information. Theabundance of information available in their formative years has mademillennialsamoreinformedconsumerbase,andhasshapedtheirdecisionsregardinghealth,wellnessandfood.

Millennialsarenotnecessarilyhealthierthanpreviousgenerations.Theuseoftechnologyhaspromotedasedentarylifestyleanddiscouragedoutdooractivities.Obesityratescontinuetobehighamongmillennials.Forexample,in the UK, obesity prevalence is at 12% among 16–24-year-olds and 19%among 25–34-year-olds, according to Public Health England. And theprevalenceofoverweightadultsisgrowinginmajoreconomies.

Figure7.PrevalenceofOverweightAdultsasPercentageofTotalAdultPopulation

Prevalenceofoverweightadultisthepercentageofadultsages18andoverwhoseBodyMassIndex(BMI)ismorethan25kg/m2.Source:WorldHealthOrganization,GlobalHealthObservatoryDataRepository

Regardless of these statistics, it is apparent that the attitude of manymillennials towardhealthandwell-being isdifferent than thatofpreviousgenerations. In the UK, 39% of younger millennials, compared to 34% ofshoppers on average, look at nutritional information when shopping forgroceries,and23%,againstanaverageof13%,usecaloriescountingapps,accordingtomarketresearchcompanyMintel.

IntheUS,asurveyundertakenbyAetna,ahealthcareinsurancecompany,found that millennials are much more concerned about eating right andexercisingthanpreviousgenerationswere.Forinstance,24%ofmillennialsrespondedthateatingrightisthemostimportantaspecttoachievingwell-being, versus only 12% of baby boomers. Older generations give moreimportance to other factors, such as not being overweight,which 42% ofboomers surveyed rated as the most important factor to achieving well-being.

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Theabundanceofinformationavailableintheirformativeyearshasmademillennialsamoreinformedconsumerbase,andhasshapedtheirdecisionsregardinghealth,wellnessandfood.


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Figure8.ShareofUSPopulation thatConsidersEatingRight theMost ImportantBehaviortoStayHealthy

Source:Aetna

MILLENNIALSLOOKFORHEALTHYOPTIONS,PRODUCTINFORMATIONANDEXOTICFLAVORS

Millennials’ attention to eating right is reflected in their food-purchasingpreferences. They value healthy, fresh, organic and artisanal food, but atthe same time look for convenient-to-eat options and exciting and exoticnewflavors.Inparticular,millennialslookfor:

• Healthyoptions:Mostmillennialsthinkfactorsassociatedwithhealthyfood choices are more important than previous generations thoughtthey were. For instance, in their food and beverage purchases,millennials tend to give more importance to an “organic” label thanoldercustomersdo.

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Source:Shutterstock


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Figure 9. US Consumers Who Consider the Label “Organic” Important WhenMakingFoodandBeveragePurchases,byGeneration:2014

Source:HarrisInteractive

• Information:Theaccessibilityofinformationisimportanttomillennialsindecidingwhatfoodtobuy.IntheUS,80%ofmillennialsvaluehavingaccess to informationabouthow their food isproduced, according tomarketingfirmFutureCast.

• Labels: Many millennials consider food labels a valuable tool forinforming their purchasing decisions. According to a survey byEuromonitorInternational,40%ofmillennialsintheUSlookforlimitedornoartificialingredientswhenreadingfoodlabels,comparedto33%ofbabyboomers.

• Hot and spicy taste: US millennials are flavor-adventurous andappreciatespicyandexoticfoods.ItalianandMexicancuisinesarethemostpopularamongmillennialsintheUS,astheyoftencombinefreshandhealthyingredientswithexoticandspicyflavors.

Figure10.USMillennials:CuisinesConsumedatLeastOnceperWeek,2012

Source:AlixPartners/Jefferies

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Millennials’attentiontoeatingrightisreflectedintheirfood-purchasingpreferences.


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• Snacks: Snacking, or grazing, is very much part of the lifestyle ofmillennials,whotendtoeatoutsideregularmealtimesmorethanothergenerationsdo.MorethanhalfofUSmillennialssnackatleastonceperweek, according to Euromonitor International, compared to only 20%of baby boomers. In the UK, 79% of younger millennial consumers(aged16to24)snackonceperdayormore,comparedto just62%ofbabyboomers,accordingtoMintel.

• Guilt-freefood:Manymillennialspayattentiontowhattheyeatevenwhen snacking. Snacks that are marketed and perceived as healthytendtoattractmillennials.Forinstance,high-proteinsnackshavebeenparticularlysuccessful,asprotein ispossiblytheonlynutrientthathasnever been questioned by mainstream media, unlike sugar, fat andeven carbs. In the US, themarket for high-protein snacks has grownsubstantially. Greek yogurt—higher in protein than regular yogurt—grewfrom4%ofthetotalUSyogurtmarketin2008to52%in2014.

COSTPREVAILSOVERBRANDLOYALTY

Budget considerations factor more heavily than brand loyalty for manymillennials,accordingtoa2012surveyofUSconsumersbyinvestmentbankJefferies. The survey found that 62% of millennials agreed or stronglyagreed that cost is more important than brand name when buyinggroceries.

ThisisnotaviewuniquetoUSmillennials.Anothersurvey,conductedintheUK in 2014 by Irish State agency Bord Bia, shows that 40% ofmillennialsstatedthatcostismoreimportantthanbrandnamewhenbuyinggroceries;thiscompareswithjust23%ofbabyboomerswhoagreedwiththisview.

Figure 11. Brand Loyalty vs Budget Considerations: Percentage Agreeing thatCheaperProductsareChosenOverBrandedFood,ByGeneration,UK,2014

Source:BordBia

A tighter food budget is also affectswhat types of grocery categories UKmillennials buy, according to a 2015 survey undertaken by consultancyFuture Thinking; for instance, its survey found that, because of financialconstraints, only 80% of millennials regularly purchase fresh fruit andvegetables,comparedwith96%ofover-55yearoldconsumers.

Anda further survey fromBordBia,undertaken in theUK in2014, showsthat18%ofmillennialsstick toastrictbudgetall the timewhenshoppingforgroceries;just8%ofbabyboomerssharethisbehavior.

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IntheUS,80%ofmillennialsvaluehavingaccesstoinformationabouthowtheirfoodisproduced.

Budgetconsiderationsfactormoreheavilythanbrandloyaltyformanymillennials.


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Figure12.PercentageofRespondentsStickingtoStrictBudgetalltheTimeWhenShoppingforGroceries,ByGeneration,UK,2014

Source:BordBia

Priceisimportanttomillennialsbecause,althoughtheirpersonalincomeisgrowing at the fastest rate that it will over their entire lifetime, theirpurchasing power usually remains lower compared to older generationsthathavealreadyreachedtheirpeakearningpotential.

MILLENNIALSDRIVEHEALTHYANDORGANICOFFERINGS

Millennials still shopmainly in traditional grocery channels, although theyaremorelikelythanotheragegroupstobeshoppingonline:

• In the US, traditional grocery stores, including supermarkets,accountfor41%offoodexpenditureamongmillennials,accordingtothe2012Jefferiessurvey.

• In the UK, 47% of millennials do a weekly shop in a bigsupermarket,according toa2015studyundertakenbymarketingagenciesHaygarthandFlamingo;and60%ofmillennials regularlyuseconveniencestores,accordingtoa2015reportfromMintel.

Figure13.USMillennials’ShareofFoodExpenditure,byStoreType:2012

• • • • • • • •

Source:AlixPartners/Jefferies

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• InbothCanadaandtheUS,millennialsaresignificantlymorelikelythan the average consumer to be buying groceries online: forinstance, in Canada, 21% of those aged 25-34 have boughtgroceries online, compared to a total-population average of just12%, according to a 2015 Mintel study. In the UK, 57% ofmillennials shops for groceries online at least once per month,comparedto40%ofbabyboomers,accordingtoBordBia.

Figure 14. Percentage of Respondents Buying Groceries Online Once perMonthorMore,ByGeneration,UK,2014

Source:BordBia

• Yet,evenformillennials,onlineisaminoritygrocerychannel:only10% of UKmillennials do all their grocery shopping online,whilethe vast majority—89%—are regular in-store grocery shoppers,accordingtoHaygarthandFlamingo.

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Source:Shutterstock


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Even mass-market grocery retailers are paying more attention to foodtrendsthatareparticularlypopularamongmillennials,suchasthedemandforfresh,organicandartisanalfoods.Krogerhasbeenamongthoseleadingthe charge intonatural andwhole foods categories; it hasbuilt its SimpleTruthwholefoodsandorganiclabelintoa$1.2billionbrand,aswenotedinour reportTheMiddle-Aisles Exodus:US Shoppers Flee toHealthier,MoreNatural Foods. Target, too, is among those ramping up its natural, local,organic and “clean” product offering. Walmart is also investing in freshfoods,withaparticularfocusonsupplychainimprovementsthatwillallowittobringfresherproduceintoitsstores;sinceNovember2014,ithasalsorampedupitsorganicoffering.

RETAILINGTOMILLENNIALS:REWETOGOAND365BYWHOLEFOODSMARKETGrocery retailers are tailoring their propositions to match the needs ofmillennials.Here,weoffer twobrief case studiesofmajor grocerygroupslaunchingnewformatsthatcatertothedemandsofmillennialshoppers.

InGermany,REWEGrouplaunchedREWEToGo,aninnovativeconvenienceconceptwith a strong focus on healthier and affordable foods to go. Theformatwas first launched in2011and in2016 the companyannouncedaroll-outoftheformatatAralfillingstationsinGermany.

Located in busy transit areas, REWE To Go competes with foodserviceretailers more than with other convenience stores: the banner offershealthier and more affordable on-the-go meal solutions than thoseavailablefromfastfoodrestaurantsandcoffeeshops.Customerscanfindarange of ready-to-eat fresh food such as salads, sushi, fruit salads andartisanal,freshlybakedbakeryproducts.

Although not explicitly conceived to target millennials, the REWE To Goformat addresses the demand for convenience, affordability and healthysnackingsolutionsthatcharacterizesmillennials’preferences.

Evenmass-marketgroceryretailersarepayingmoreattentiontofoodtrendsthatareparticularlypopularamongmillennials,suchasthedemandforfresh,organicandartisanalfoods.

Source:Shutterstock


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AcrosstheAtlantic,in2015,WholeFoodsMarketrevealedperhapsthefirstmajormillennial-focusedstoreformat.Itsnew365byWholeFoodsMarketchainwillcatertomillennials’preferencesbyoffering:

• Fresh, healthy foods, for which Whole Foods Market is alreadyrenowned. The company said the store format will respond to“explodingdemandformorenaturalandorganicfoods.”

• Innovative technology.Whole FoodsMarket has not statedwhat thiswill be yet, but we would not be surprised to see mobile-focusedcommunication and transaction technology, and in-store digitalcommunicationtechnology,inthenewformat.

• Moreaffordableprices.WholeFoodsMarketsaidthenewstoreformatwill be “where value meets quality.” As we have already noted, lowpricesareimportanttomanymillennialgroceryshoppers.

• Convenience,throughasmaller-storeformat.Cateringtotheimplicitlyfasterpaceofyoungershoppers’lives,the365formatpromisestooffera“simplewaytoshop.”

Thefirstthreeofthe365storesareexpectedtoopenthisyear,andupto10additionalstoresareexpectedtoopenin2017.ThefirststorewillbeintheSilverLakeneighborhoodofLosAngeles,andotherstoresareplannedfor cities that are, as one news article put it, “hipster havens”: Bellevue,Washington; Houston, Texas; Portland, Oregon; Santa Monica, California;CedarPark,Texas;Cincinnati,Ohio;andSanFrancisco,California.

Source:Shutterstock


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HOWTOWINWITHMILLENNIALS

When targeting millennials, companies need to consider several things:these consumers are sensitive to messages passed through new media,includingsocialmedia;theyliketosnack,butalsotoeathealthily;theyaresensitive to provenance, but also to price; and they want new tasteexperiences.

The new 365 byWhole FoodsMarket concept is perhaps the epitome ofmillennial-focused grocery retailing. But smaller stores, an improved freshoffering,astrongdigitalofferingandlowerpricesnowlooktobeessentialformostmass-marketgroceryretailers.Improvedofferingswillchimewithconsumers across all age segments,but, aswehave shown in this report,theseelementsarelikelytoresonatemostwithmillennials.

In2015,WholeFoodsMarketrevealedperhapsthefirstmajormillennial-focusedstoreformat.

Source:Shutterstock


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DeborahWeinswig,CPAManagingDirectorFungGlobalRetail&TechnologyNewYork:917.655.6790HongKong:852.6119.1779China:86.186.1420.3016deborahweinswig@fung1937.comJohnMercerAnalystFilippoBattainiResearchAssociateHONGKONG:10thFloor,LiFungTower888CheungShaWanRoad,KowloonHongKongTel:85223002470LONDON:242-246MaryleboneRoadLondon,NW16JQUnitedKingdomTel:44(0)2076168988NEWYORK:1359Broadway,9thFloorNewYork,NY10018Tel:6468397017FBICGROUP.COM

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