Millennials are Impacting the Future of Retail
The influence of Millennials on the retail industry has seen a powerful shift with a continuous boost for internet retailers, leaving traditional brick-and-mortar stores scrambling to survive. For the first time since 2010, traditional department and brick-and-mortar stores are seeing a sharp hit to sales and employee reduction.
Online shopping is innate for Millennials, and it is no surprise that their impact on online retail will only continue to grow as Millennials are moving towards home ownership, getting married, and starting families. Good news for online retailers; Millennials are the largest generation surpassing Baby-Boomers. Millennials are entering the workforce as Baby-Boomers are retiring and that translates to Millennials spending more than ever before.
Millennials are Focused in Their Spending
Millennials are spending more on items to furnish and customize their new homes and less on clothing, which is promising for the companies in the home and furnishing industries. Unfortunately, clothing retailers will not make out as well. Overall, Millennials are focused on starting their independent lives and families rather than filling up their closet.
With Millennials having an increasingly larger presence in the workforce — which they will dominate within the next 5-10 years — sales will continue to rise in many areas such as home furnishings, restaurants/dining, and hobbies. Thankfully, the increase in Millennial spending with online retailers has come just in time to give the economy a boost now that Baby-Boomers are spending less.