‘Perennials’ to bring billions of revenue opportunities

 

Move over Millennials! A new age group is poised to influence retailing in the coming years. IGD’s latest research revealed that Generation P: The Perennial Shoppers or Perennials segment would drive the international grocery sector up by an incremental of US$116 billion. The trend will happen over the next couple of years, creating a $1.46 billion opportunity by 2022.
Perennials consist of shoppers aged 50-64 who are digitally savvy, experimental and willing to spend more for quality. The firm explained that Perennials presents a critical opportunity for international grocery retail. This group grow in size and significance over the next two years, notably in the UK, Singapore and the USA.
Across the three markets, IGD’s research has identified opportunities for retailers and suppliers to engage with these shoppers. A study from these three markets revealed that Perennials are:

• Increasingly engaged online grocery shoppers. Over half (56%) of Generation P shop online for food sometimes, with a third (33%) predicting they will do more in the future.
• Have an affinity with brands that they have grown up with, but also hold private label products in the same high regard. Meanwhile, 67% of these shoppers buy particular brands because they have grown up with them. The same number (68%) indicate that they are also very satisfied with the quality of own-label products, with 58% trusting them as much as brands.
• Value convenience and quality over price. A significant 75% of 50-64-year-olds say they are sometimes tempted to spend more on better quality products. At the same time, 56% of the respondents will sometimes spend more on products because they are easier to prepare and cook.
• Would like to select products with specific ethical or environmental credentials but tend to prioritise other factors in their purchasing decisions. Looking into the future, over half of Generation P (54%) indicate that issues around the environment will take on greater importance for them. However, 49% admit they will always prioritise factors such as quality and price.

Simon Wainwright, director of Global Insight at IGD, said: “This research shows how significant Perennials are to global grocery. They are an engaged group of shoppers who are accessible when approached in the right way.” He added that competition is already fierce between retailers looking to find new ways to attract shoppers and COVID-19 has made it hard to chart the future.
"Having a clear focus on your shoppers and knowing how best to reach them will be crucial to success,” Wainwright said. “That’s why the time is right to focus on this often-overlooked group.”