While traditions are passed down from generation to generation, each cohort has a distinct attitude all its own. Members of each generation share similar outlooks on life, similar style, and similar shopping habits.
Matures are those born prior to 1945. Baby Boomers are those born between 1946 and 1964. Researchers do not entirely agree on the boundaries for Gen Xers and Millennials, but for the research that follows, Gen Xers are those born between 1965 and 1976, and Millennials are those born between 1977 and 1994.
The recession has affected each generation differently, according to Sachs Insights.
Baby Boomers do not have the financial security they worked for and were expecting at this stage in their lives. They feel squeezed by trying to help out their struggling children and also providing for their aging parents. They are cautiously optimistic for a turn around and are making due until then.
Boomers are struggling with employment issues. Those who have lost their jobs feel that little is available to people their age. Some older Boomers are looking forward to the steady income they will get with Social Security. Those who are working feel that younger generations are a threat to their job security.
Gen Xers came of age in the recession of the 90s and feel it is their personal responsibility to remain positive despite the difficult times. They are working on building their lives and families, but the cost of doing so does not allow them to save much if anything. They have very low expectations of retirement, and many think that they will work in some capacity for the rest of their lives.
Xers are hoping for an opportunity to make up for the setbacks they have experienced during the recession.
Millennials are products of the digital age, and have always known that the world can change in an instant. As a result, they have become adaptable, flexible, and resilient. They maintain the same goals — career, home, children — but their dreams are on hold and when they may realize their goals is uncertain.
Millennials were considered an entitled generation, but in the wake of the recession, many have learned they cannot count on their parents to bail them out of situations. They are learning to manage their own finances and how to plan for the future. In the meantime, they rely on their friends for support.
Some effects of the recession have manifested across all generations. Each recognizes the ways in which they were spending excessively in the past. They are turning to saving not only to have an emergency fund, but also as a way to cope with their own fear.
While they used to pay a little extra for a product or service if it would save them time, they are now spending more time in order to plan and track down the best deals. Their deal-seeking behavior has diminished their store loyalty.
Shopping Among Generations
Matures are influenced by the frugal lifestyles developed during the Great Depression and World War II. They are deal-seekers and make frequent shopping trips (about 190 a year) but spend the least per trip ($35). Millennials, on the other end of the spectrum, do not want to waste time in stores, so they make the fewest number of trips (about 140), and spend the most per trip ($55).
Gen Xers spend nearly as much as Millennials per trip ($54), but they make more shopping trips (about 155). Their higher rate of spending is attributable to the fact they are shopping for larger households that include children.
Although Baby Boomers are increasingly becoming empty nester, they are used to frequent shopping trips, and continue to make about 180 trips per year, but they spend less than Xers per trip ($46).
The amount each generation spends annually on certain grocery categories reflect their life stages as well. Millennials and Gen Xers spend a significant amount on baby food ($170 and $127, respectively) and carbonated beverages ($116 and $134, respectively). Among Baby Boomers and Matures, they spend the most on pet food ($211 and $198, respectively) and wine ($125 and $124, respectively). [Consumer Spending & Attitudes]
Sources: “3 Generations: Aspirations & Hard Choices In The New Economy,” Sachs Insights, Robert Miner, President, 200 Varick St., #500, New York, NY 10014; 888-924-4888, x105; rminer@sachsinsights.com; www.sachsinsighs.com. Price: Call for information.
“Nielsen Homescan,” Nielsen Company, Todd Hale, SVP Consumer & Shopping Insights, 770 Broadway, New York, NY 10003-9595; 646-654-5000; www.nielsen.com. Price: Call for information.
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