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Retailers Aren't Tapping Full Spending Potential of Younger Baby Boomers, Report Finds

Retailers in the United States are taking a huge risk by underestimating the buying power of the over-50 generation, according to a report by the Fung Business Intelligence Centre.

The study, A Booming Opportunity: Profiling from a Graying America, finds that the aging Baby Boomers will continue to be a growing consumer market for the next 20 years.

"Just as they have at every other stage of their lives, Boomers are now redefining what it means to be old," said Deborah Weinswig, executive director-head of global retail and research at FBIC. "On the whole, they are healthier, richer and more active than previous generations of older Americans. Younger Boomers (ages 55 to 64) earn and spend more than the average U.S. consumer, and significantly more than the avidly courted Millennials."

On average, younger Boomers outspend Millennials by nearly $8,000 annually and the typical consumer by $5,000, with spending occurring across most categories. Boomers will control more than half of all dollars spent on grocery foods in 2015, with a particular focus on health and wellness, and also spent $1,500 more than the average Millennial on eating at home, entertainment, household furnishings, pet supplies and personal care.

Yet just 10 percent of U.S. marketing dollars target this demographic as preconceived notions of aging linger, according to the report.

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The study, A Booming Opportunity: Profiling from a Graying America, finds that the aging Baby Boomers will continue to be a growing consumer market for the next 20 years.

"Just as they have at every other stage of their lives, Boomers are now redefining what it means to be old," said Deborah Weinswig, executive director-head of global retail and research at FBIC. "On the whole, they are healthier, richer and more active than previous generations of older Americans. Younger Boomers (ages 55 to 64) earn and spend more than the average U.S. consumer, and significantly more than the avidly courted Millennials."

On average, younger Boomers outspend Millennials by nearly $8,000 annually and the typical consumer by $5,000, with spending occurring across most categories. Boomers will control more than half of all dollars spent on grocery foods in 2015, with a particular focus on health and wellness, and also spent $1,500 more than the average Millennial on eating at home, entertainment, household furnishings, pet supplies and personal care.

Yet just 10 percent of U.S. marketing dollars target this demographic as preconceived notions of aging linger, according to the report.

Read Full Article