Retailers should benchmark stores with millennials suggests research

5th February 2018

Retailers should benchmark their store layouts, systems and processes against shopping preferences of millennials and post-millennials - the consumers who will redefine the future of retail – according to data and analytics company GlobalData.

Pressed for time, millennial consumers look for convenience and flexibility, expecting a seamless omnichannel experience while looking to mix and match online shopping, mobile apps and visits to physical stores.

While millennials use eCommerce platforms and apps to a greater extent than previous generations, more than half of their purchases still take place in bricks-and-mortar stores, according to GlobalData’s figures.

However, this group needs an incentive to visit stores, such as an entertaining environment, strong brands they can identify with, and recreational facilities such as in-store cafes or demonstrations and trials.

Retailers need to deploy analytics to align their store layouts, systems and operational processes in line with millennials’ digital maturity and preferences, suggests the research company.

GlobalData digital retail analyst Andreaqs Olah says, “ Retailers also need to work on their social media strategies and integrate these with loyalty programs, customer service functions, and various mobile apps, from style advisors and games to third-party apps that provide voucher schemes. They look to cooperate with strong brands that are popular with millennials.”

Millennials and post-millennials primarily use mobile devices including smartphones and tablets, plus wearables such as smart watches and augmented reality devices, to interact with retailers and purchase products. Since they use these devices at home, work, on the bus and when visiting physical stores, retailers need to detect their location and provide store or aisle-specific content and notifications to encourage interaction and purchases, suggests GlobalData.