Deck The Malls With Boomer Shoppers

How can marketers reach more Boomer shoppers this season? For answers, let’s turn to the blizzard of holiday shopping surveys out there. 

First of all, will 2014 be dominated by Santas or Scrooges? The National Retail Foundation has tidings of joy: For the first time since 2011, holiday sales will increase more than 4%. However, a short selling season of just 27 shopping days doesn’t leave a lot of time to capture Boomer customers. So, what’s the best way to reach them? Although different surveys reached different conclusions, some common themes emerged. 

The FIVE W’s of Boomer Holiday Spending

For WHOM are Boomers buying? According to the 2014 Mintel Holiday Forecasting Study, the purchase of most categories of gifts declines with age. However, women aged 55 and older are very likely to buy food to entertain the extended family at holiday meals. 82% of women aged 55 plus also buy gifts for family members, many of them earmarked for grandchildren. In fact, according to a recent Forbes article, Boomers spend a collective total of $35 billion a year on their grandkids.

WHAT are Boomers buying? 

The generation that marched on Washington now leads the country in purchasing small, rectangular pieces of plastic. According to the Shullman Research Center, Boomers buy more holiday gift cards than any other demographic. 62% of Boomers purchase gift cards, more than Gen Xers (57%), Millennials (38%), and seniors (18%). Boomers are right on target with their gift choices: According to a National Retail Foundation study, gift cards are the most requested gift item for the eighth year in a row. 

If your business doesn’t already offer gift cards, the holidays are a good time to start. If you already offer gift cards, consider offering them electronically. According to Pace Perspectives, electronic cards are gaining in popularity since plastic gift cards are so easily lost. In fact, 40% of 18-29 year olds admit to having lost at least one gift card. 

WHERE are Boomers shopping?

According to Mintel, Boomers’ number one source for researching holiday gifts is the Internet, but many still prefer to make their purchases in the store. 43% of men ages 55 and up, and 38% of women in that age group, say they research items online, then wait to find them on sale in stores. How can you capitalize on their shopping habits? Mintel suggests offering online coupons that shoppers can redeem in the store. 

WHEN do Boomers shop? 

According to a recent PunchTab survey, Boomers are the least likely of any demographic to shop on Black Friday or in the entire month of November. They spread out their shopping throughout the season: 22% in September, 20% in October, 34% in November, and 21% in December. In contrast, Gen. Xers and Millennials do the bulk of their shopping in November. 

WHY are Boomers buying?

During the holidays, it’s important to look at Boomers’ life stages, not just their ages. That’s because Boomers in larger households tend to spend significantly more than empty nesters in one-to-two- person households. Another surprising fact reported by Mintel: Affluent Boomers do not necessarily spend more than their less-wealthy counterparts, unless they have children at home. 

HOW do Boomers choose gifts? 

According to PunchTab, Boomers are influenced by a number of sources. 62% ask friends and family for input, 61% browse in person, 50% check recipients’ wish lists, 39% browse brand websites, 38% read online reviews, 30% check flyers or catalogs, 24% open emails, 17% browse online magazines or blogs, 14 turn to Facebook, and 9% log on to PInterest.

Are Boomers motivated by price? Not as much as Gen Xers, according to the CFI Group Holiday Retail Spending Report. Only 23% of 55-65 year olds are influenced by sales and coupons, versus 40% of 25-34 year olds. 

One final idea from Mintel to get cash registers ringing: Since only 11% of grandchildren currently give presents to their generous grandparents, how about leaving something for Boomer Santas under the tree? Art or photography classes, books for Kindle, or restaurant gift cards are all possibilities.

 Derek Dunham, Media Post Nov 24th, 2014

U.S. sales of gluten-free foods rise 63 percent in two years

According to global market research firm Mintel, dollar sales of gluten-free products are surging. A new report from the company, "Gluten-Free Foods — US," forecasts the gluten-free food market to reach sales of $8.8 billion in 2014, representing an increase of 63 percent from 2012 to 2014.

“Overall, the gluten-free food market continues to thrive off those who must maintain a gluten-free diet for medical reasons, as well as those who perceive gluten-free foods to be healthier or more natural,” said Amanda Topper, food analyst at Mintel. “The category will continue to grow in the near term, especially as FDA regulations make it easier for consumers to purchase gluten-free products and trust the manufacturers who make them

All gluten-free food segments increased in the past year, Mintel noted, although the snack segment increased the most. Gluten-free snacks increased 163 percent from 2012 to 2014, reaching sales of $2.8 billion. Sales increases were mainly the result of a 456 percent increase in potato chip sales.

Meanwhile, the meat/meat alternatives segment is the second-largest gluten-free food segment in terms of sales, reaching $1.6 billion in 2014, a 14 percent increase from 2012 to 2014. In addition, Mintel said, the bread products and cereal segment saw gains of 43 percent during that same time period and is set to reach $1.3 billion this year.

Despite strong growth during the past few years, retailers and suppliers will still find opportunities to innovate, Topper said, especially in categories that traditionally contain gluten. Bread and cereal are ripe for gluten-free growth, Mintel added, with only 1 percent of the overall segment termed gluten-free.

“Gluten-free products appeal to a wide audience; 41 percent of U.S. adults agree they are beneficial for everyone, not only those with a gluten allergy, intolerance or sensitivity," Topper said. "In response, food manufacturers offering either gluten-free alternatives or existing products with a gluten-free label have increased dramatically over the last several years,” adds Amanda.

But it seems not everyone is convinced of the health attributes of gluten-free products. Thirty-three percent of respondents to a 2013 Mintel survey agreed that “gluten-free diets are a fad,” and the number increased to 44 percent of Americans in 2014. However, gluten free’s popularity has not waned — 22 percent of Americans currently follow a gluten-free diet, compared to 15 percent in 2013, Mintel said.

By Store Brands, Stagnito Business Information

Cyber Monday grows as busiest day of season

Great article from USA Today, Dec 2nd. ~Curt

Cyber Monday proved just as big a draw as ever after a weekend that saw fewer people shopping in stores.

Sales grew 8.5% for the 24-hour period, according to IBM Digital Analytics, solidifying Monday as the largest online shopping day of the year. Shoppers spent an average of $124.21 per order, down 3.5% from last year, though the number of transactions was up and people bought more items on average per order.

Monetate, a company whose software helps major retailers including Macy's and Best Buy personalize the online shopping experience, also tracked more shopping sessions this year with about 49.3 million sessions, up 11.8% from 2013. Revenue per session increased 7% and the number of people who completed a purchase increased 8.3%.

The National Retail Federation expected a different outcome, projecting fewer shoppers would head online Monday at about 127 million vs. 131 million in 2013.Growth did slow compared to previous years: in 2013 online sales were up 20.6% vs. 2012, according to IBM data.

That may be because shoppers have more chances to get deals later this week as Cyber Monday prices continue through Saturday with some brands. With promotions spread out across November and December this year and many retailers having offered pre-Black Friday and Cyber Monday sales to spur people to shop early, those days themselves have become less important as shopping drivers.

Meanwhile, more people than ever are opting to online shop and use their phones to browse for deals. Online sales over Thanksgiving weekend were up 17% vs. last year and mobile accounted for more than half of all online traffic, according to IBM. On Monday more people shopped on desktops, though mobile still accounted for 41.2% of all online traffic, a 30.1% increase over last year, IBM says.

Retailers are hopeful that online deals this week will be compelling enough to get shoppers to continue to spend. Walmart doubled the number of deals available for Cyber Monday this year and will continue to have 500 new promotions a day through Friday. Walmart reported Monday was it's biggest day of online orders ever as customers shopped for deals on the 16GB iPad mini, HDTVs, and video games, all major traffic drivers, the retailer said.

Target is billing its Cyber Week as its biggest yet, with more than 100,000 items on sale all week. Kohl's is going a day further with deals online through Saturday. Amazon is offering new deals up to every 10 minutes all week.

Those deals may entice the roughly half of consumers who still have shopping to do, says Consumer Electronics Association Chief Economist Shawn DuBravac. "I would estimate probably close to half of consumers have completed the bulk of their holiday shopping at this point," he says.

And he expects people to continue to buy leading up to Christmas. "There's still appetite as we head into the remaining few weeks of the holiday season," DuBravac says.

That appetite may be fed by increasing parity between online and in-store deals and the convenience of options like same-day shipping and buy online, pick up in store, all of which are making it easier for consumers to wait out the season for the best prices, says Lucinda Duncalfe, CEO of Monetate, a company that sells software to retailers to help them personalize the online shopping experience.

"You can shop online later and later and still get things by Christmas Day," she says. "What will end up happening over time is this continued flattening of the season where people are more willing to wait to see what's going to happen."

Demonstrating credibility

It's not enough to tell prospects you offer better service or quality than your competitor. Prospects want to hear specifics about why you're better.

Here's a formula that helps show the difference more effectively:

* Unique qualities. What can you offer that your competitor can't? Try to convert the value of your products or services into financial results.  For example, I am a veteran television sales executive...but I am also certified in SEO, and other digital aspects that allow me to help outside of TV.

* Advantages. What do you do better than the competitor? Give prospects what they need to understand the unique qualities of your product or service.

* Parity. If there’s little difference between you and a competitor, look for minor ones that may add up to a competitive advantage.

* Disadvantages. Are there areas in your product or service in which competitors have a definite edge? Focus on the advantages you do have to offset these disadvantages.

Happy selling! ~Curt