Retailers need to ‘rethink’ approach to millennials, says GlobalData

01 February 2018

Retailers need to reassess their business strategy by benchmarking their store layouts, and processes against the shopping preferences of millennials [those aged between 18 and 34] and post-millennials, who are going to redefine the future of retail, according to analytics company GlobalData.

While millennials use e-commerce platforms and apps to a greater extent than previous generations, more than half of their purchases still take place in bricks-and-mortar stores, said GlobalData.

However, the company added that millennials ‘need an incentive’ to visit stores, such as an entertaining environment, strong brands that they can identify themselves with, and recreational facilities like in-store cafes or experiences in form of memorable product demonstrations and trials.

GlobalData advises retailers to deploy analytics to align their store layouts, systems and operational processes in line with millennials’ digital maturity and preferences.

Andreas Olah, digital retail analyst at GlobalData, said: “Retailers also need to work on their social media strategies and integrate these with loyalty programmes, customer service functions, and various mobile apps, from style advisers and games to third-party apps that provide voucher schemes. They look to cooperate with strong brands that are popular with millennials.”