Re-invent Your Store Towards The New Buying Mentality for 2010
Posted: Wednesday, October 28, 2009
by Ron Pawlowski
The Retail Institute
Shopping Habits Are Polarizing More Towards Needs Based Purchases
In an earlier article, I spoke about new buying mentalities for Baby Boomers and their offspring. These aging generations are trying to buy items that will preserve their youth. They're adopting younger lifestyles and embracing "green" products with great enthusiasm.
This will be more apparent with the classic baby boomers but a secondary consideration for their aging children. Both groups will migrate to a needs based mentality for different reasons. The baby boomers have seen their net worth and retirement eroded by the 2008 stock market collapse compounded with significant drops in their home equity position. Many boomers particularly those approaching retirement will not have enough years to regain what they have lost and hence a change of plan must be in order.
Baby boomers are now realizing that they own just about everything they need to get by. Discretionary spending on clothes, lifestyle, electronics and fashion will drop by 2010 for what has been considered the most prosperous and highest spending age group in past retail eras. I predict that baby boomers will use what limited cash they have on food, necessary repairs and even perhaps buying the first used car in their lives to save money as their automotive needs diminish.
Their children will have other reasons for adopting a more needs based buying mentality in 2010. They still have many discretionary buying aspirations but are at a point in their lives where they are much more in debt than their largely paid off parents and unemployment levels are near 10% with low expectations of any improvement in 2010.
This may be the last Christmas for some time that reflects any significant degree of discretionary spending. Stores that want to survive in 2010 must reinvent themselves and offer a stronger needs based product line. Retailers must transform as much of their retail line into items that are perceived as practical, problem solving and durable. Items that traditionally are regarded as wants based items must be marketed and presented as merchandise of good value, durability and versatility in this upcoming year of great challenge for the retailer. This approach will justify the purchase in the minds of the new needs based consumer.
Understandably, product lines for this year are a done deal. However now is the time to evaluate and reinvent your store as the older consumer demographic groups evolve to a survival based mentality in 2010.
Take Action Today:
1) Start your research NOW determine what percentage of your store focuses on needs and wants based buying decisions.
2) Set a new target for 2010, in which you'll offer more needs based products and fewer wants based ones. I
3) If your retail business is largely a wants based genre, determine how you will present your products along the lines of durability, value and versatility.
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