There are very few retail outfits that enable a busy consumer to meticulously pick out an engagement ring, pull a shredder off the shelf, toss fresh king crab legs into the shopping cart, load up on orchids, and buy a flat screen TV—housed all under one roof (oh, and did I mention wash the spending spree down with a slice of pizza and a coke at the end?) This place, in case you’ve never been, is what I consider to be a small Mecca: Costco.
For the rest of today's blog, continue at The Boomer Blog
Baby boomers, perhaps more than any other demographic, account for the popularity of these one-stop-shop warehouses. According to a national study of boomers conducted by The Nielsen Company and Age Lessons, a new market segment has emerged. Known as “Pivot Spenders,” this group provides financial support to both their elderly parent and their adult child. The study determined that the supposedly narcissistic boomers are selflessly paying for both older and younger generations of their family in the same breath (while trying to save for retirement, pay the mortgage and buy themselves a few goodies once in awhile).
Almost 40% of “Boomer Pivot Spenders” paid out $1,000+ per year to help their older parents, while 55% contributed to an amount to “supplement” an adult child as they moved from university life/young adulthood into the real world. The former I understand, but the latter I found surprising. Maybe because in my early 20s, I would occasionally get gas money. The “supplement” occurred when in college. It was called “tuition.”
For retailers this means maximizing cross-merchandising possibilities. Creating intergenerational brands and celebrating them as such just might appeal to the boomer, who is doing one of the things she/he loves most—pivoting, pampering, providing for the family.
Amanda Sobanet