Danielle Ballou, M.S.’s Post

An interesting report about the future of retail with Macy's, Nordstrom and Kohl's in the spotlight. The key to growth? Targeting Gen Z and Millennials without neglecting the original retail warriors, Baby Boomers. Nordstrom has been quicker to sign deals with hot brands and direct-to-consumer names, such as Skims, Kim Kardashian’s shapewear company and timed the debut of millennial-focused fashion brand Nasty Gal with an activation in Los Angeles coinciding with the Coachella music and arts festival. Kohl's has Sephora and Macy's has Blue Mercury. It will be interesting to see how department stores stay relevant to offset the convenience of online shopping.

“Department stores are aging — and so are their customers.” “For more than a century, the stores won over multiple generations with a promise to sell shoppers a wide variety of everything. For many millennial and Gen Z consumers, that hasn’t been enough — especially as they discover items on social media and specialty retailers, big-box stores and online players steal away sales.” “Customer data illustrates the challenge for the retailers: At Kohl’s, 40% of customers are baby boomers, according to Numerator, a market research firm that tracks retail trends and sales patterns with a panel of 150,000 U.S. consumers that’s balanced to represent the population. At Macy’s, more than a third of customers — 36% — are boomers.” “Nordstrom is the only one of the three that has a larger base of millennial and Gen X shoppers than baby boomers, with boomers accounting for 25% of its customer base. Its customer data includes both its namesake stores and its off-price retail chain, Nordstrom Rack, which has been known to draw in younger, fashion-forward customers hunting for deals.” “Aging customers aren’t department stores’ only hurdle. The chains, like other retailers, have struggled with foot traffic and sales as consumers spend less on clothing, bedding and other discretionary items while more of their money goes toward everyday items because of inflation.” “In an interview with CNBC in late March, CEO Tom Kingsbury said department stores, including Kohl’s, have relied too much on coupons to get customers through their doors. That formula doesn’t work for millennial and Gen Z shoppers, he said. They want compelling merchandise and clear pricing — things they’re finding at off-price stores like T.J. Maxx instead.” “One of the dilemmas for Macy’s? Gen Z and millennial shoppers aren’t as loyal, TD Cowen’s Chen said. They shop high and low, buying a luxury handbag one day and an outfit from Target, Costco or Zara another.” “”You can actually look better for cheaper now,” he said.” “Another advantage for Nordstrom? Most of its stores are Nordstrom Rack locations, off-price stores that may have a friendlier price point for younger shoppers.” “Nordstrom is trying to increase its fashion-forward merchandise in a new way, too. About a month ago, it rolled out a third-party marketplace that allows it to sell a wider variety of items without taking on the risk of owning the inventory. The marketplace approach follows the model that Amazon and more recently, Walmart, has used to bulk up its online offerings.” - Melissa Repko

IN RETAIL NEWS... 🛍 Big Name Chains Need Younger Customers, Badly! 💸 Department stores face an existential crisis as their customer base ages and sales slow, with Millennials and Gen Z favoring specialty retailers, big-box stores, and online shopping. Macy's, Kohl's, and Nordstrom are particularly affected, struggling to attract younger shoppers and facing intense scrutiny from Wall Street. Kohl’s has 40% of its customers as Baby Boomers, and Macy’s has 36%, while Nordstrom has a more balanced demographic with only 25% Boomers. To attract younger customers, Kohl’s is adding trendier clothing and expanding SEPHORA shops. Macy’s is opening smaller off-mall stores and more Bloomingdale's’s and Bluemercury locations. Both companies aim to improve their private brands to stand out and offer lower prices than national brands. Nordstrom, with a larger Millennial and Gen X customer base, has been quicker to sign deals with trendy brands and has more off-price Nordstrom Rack locations. It recently launched a third-party marketplace to expand its online offerings, following a model used by Amazon and Walmart. President Joe Biden’s decision to maintain tariffs on Chinese goods, including footwear, has drawn criticism for raising costs for consumers. Despite efforts to innovate, all three department stores have provided weak sales outlooks for the fiscal year. Analysts suggest that breaking old habits and appealing to younger generations is crucial for these stores to remain relevant. Will be interesting to see how this plays our as we near the Election this November with the possibility of Trump taking back office and easing financial constraints on both consumers and businesses. Melissa Repko of CNBC with the full story https://lnkd.in/dPbZsCac 💥 *** #Retail #Chains #Consumers #Business #Shopping #Demographics

If there is one thing that Gen Z and Millennials love more than their phones is thrifting. Both of these generations are driving the growth of secondhand clothing. ThredUp reports that Millenials and Gen Z are adopting shopping for secondhand clothing 2.5 times faster than other generations.  The demand for secondhand clothing has only increased throughout the years. From 2017 to 2019, secondhand sales increased by 37 percent in Millennials and 46 percent in Gen Z. These two generations are more likely to buy secondhand because they want to shop more sustainably and ethically. High Five To My Fellow Millennials - I Love To Thrift!!!! #smallbusinessowner #resaleboutique #ggirlscloset Reference: https://lnkd.in/gTYXcm9i.

Question for my network in retail: As population aging becomes an undeniable trend in much of the world, particularly markets many brands prioritize for revenue, how significantly, and how quickly, do you expect this to impact acquisition strategies and the aspirational personas brands curate? I ask because when we talk to our partners across the industry, Gen Z continues to be the most cited demographic segment of new acquisition interest. And it makes sense: Gen Z aren't typically as well represented in traditional databases (CRM, loyalty communities) that brands have spent years building, so acquisition here requires new tactics; Gen Z also represent a dynamic and vocal consumer of the future, with a far larger social reach, which in turn carries significant earned media value. And yet, part of me wonders why more of the focus isn't on how to win with older generations. Looking at census and economic data, the purchase power and resources between older and younger generations is actually widening (in favor of older generations) not shrinking. I also wonder (haven't explored the data here as much) if older generations represent a stickier consumer base with lower likelihood to shift share of spend to a competitor. Interested to hear what others think! p.s. sharing an interesting article from this morning's BoF on Gen Z vs. Millenials that got my head re-spinning on this https://lnkd.in/gUqw5cXz

DID YOU KNOW THAT MILLENIALS LOVE TO GIVE AND SEND GREETING CARDS? An article titled, "How Retailers Are Driving Greeting Card Sales Year-Round" by Jennifer Strailey, states. “Millennials like to give different cards depending on the recipient, so they aren’t buying the boxed cards. What they are doing is buying more unique cards that speak to them personally and reflect the sensibilities of the recipient. “Greeting cards are an interesting phenomenon in the digital age,” says George White, president and chief operating officer of Up With Paper. "As millennials are aging into traditional card-buying life stages, they are returning to greeting cards.” Stacey Howe, VP and general manager of national accounts for Kansas City, Mo.-based Hallmark Cards, agrees. “[Our] research shows that millennials believe in the power of a greeting card. Millennials represent nearly 20% of the dollars spent on greeting cards and are growing their spending faster than any other generational segment in the category.” Here is a GREAT way for all those card-loving millennials (plus the rest of us too!) to give SendOutCards a try, with our 3-Card Sampler Plan! 3 Cards // $5.00 // Sent in 7 days! That's $.93 per card PLUS the stamp. Use the SendOutCards app or go to my website - either way, your FIRST card is FREE, then you can select the "3 Card Sampler" plan from the pricing page! #sendoutcards #3cardsampler #easy2sendcards #promptings #greetingcards #millennials #GenX #GenY #babyboomers #sendit #gratitude #appreciation

#GenZ vs. #Millennials: Unraveling the Sock Saga 🧦 In fashion’s dynamic arena, socks have become a generational battleground. What distinguishes Gen Z from Millennials in #sockstyle? It boils down to ankle exposure. 🌟 Gen Z rocks rolled-up, vibrant socks, signaling their presence on platforms like TikTok, while Millennials prefer subtler, ankle-hugging varieties. 🕶️ Data from brands like Hanesbrands Inc. and Crew Clothing Company show a 5.9% surge in sales for above-the-ankle socks since 2021. This reflects evolving consumer preferences and underscores the importance for retailers to stay attuned. 📈 Icons like Hailey Bieber and Rihanna sport unique sock styles, merging personal style with generational identity. This shift goes beyond fashion—it's a cultural movement where younger consumers express themselves through eclectic choices. 🔗 Are you observing these trends? How are they shaping market dynamics? #FashionTrends #GenerationalStyle #MarketInsights #SockStyle

“Department stores have traditionally attracted boomers (individuals aged 60+ today) and never focused much on targeting younger shoppers. Today, around 40% of Kohl’s and Macy’s shoppers are boomers according to research by Numerator. As little as 6% of shoppers are GenZ, including at NordstromNordstrom 0.0%, highlighting a serious lack of attractiveness towards younger generations. Department stores seem to be aging as much as their customers, which comes as a concern following the worrisome earnings reported this year.” “What seems to have hit U.S. department stores? Similar to malls, department stores failed to reinvent themselves to face the rise of e-commerce, social commerce and more engaging store formats. A majority of them lack an engaging path-to-purchase, exclusive brands and activations, and as a result fail to attract younger demographics. And as customers get older, focusing on this demographic only is dangerous and means retailers are left behind.” “”When you’re a department store, you need to — and you should — be catering to younger and older,” shared Oliver Chen, a retail analyst at TD Cowen with CNBC. To do this, a turnaround plan is necessary to firstly design a more engaging, unique shopping experience that will attract millennials and GenZ and drive them to stores, and secondly provide a range of services that compete e-commerce.” - Clara Ludmir https://lnkd.in/gsMa65sk

Why is 𝘵𝘩𝘪𝘴 Shein’s typical customer? The average Shein shopper is a 35-year old female. 35 years old. A millennial. With an annual salary of around $65,000. With the assumption that Gen Z is the most consumerist generation to date, the typical Shein customer persona many have in mind are young adults with a shopping addiction. It’s not strange that many have such assumptions: → Gen Z grew up with endless online shopping possibilities. → Gen Z is young and young people want to stay on top of trends. → Gen Z is still exploring their identity and wants to experiment with style. But the belief that Gen Z alone drives Shein sales is a misconception shaped by social media and generalised stereotypes. The millennials are hiding behind this misconception. So what is Shein's appeal to millennials? → Buying at Shein means more bang for your buck: 10-20 items for $100? Such a steal. → Millennials have (their own) money to spend.. → .. and they also partly grew up with fast fashion retailers like H&M, Forever 21, Zara. I, myself, with 1998 being my birth year, officially find myself in the middle of two generations. I still remember using the first Instagram filter. But I also go crazy for a good TikTok trend.. Which generation are you and can you relate to its characteristics? 

DID YOU KNOW THAT MILLENIALS LOVE TO GIVE AND SEND GREETING CARDS? An article titled, "How Retailers Are Driving Greeting Card Sales Year-Round" by Jennifer Strailey, states. “Millennials like to give different cards depending on the recipient, so they aren’t buying the boxed cards. What they are doing is buying more unique cards that speak to them personally and reflect the sensibilities of the recipient. “Greeting cards are an interesting phenomenon in the digital age,” says George White, president and chief operating officer of Up With Paper. "As millennials are aging into traditional card-buying life stages, they are returning to greeting cards.” Stacey Howe, VP and general manager of national accounts for Kansas City, Mo.-based Hallmark Cards, agrees. “[Our] research shows that millennials believe in the power of a greeting card. Millennials represent nearly 20% of the dollars spent on greeting cards and are growing their spending faster than any other generational segment in the category.” Here is a GREAT way for all those card-loving millennials (plus the rest of us too!) to give SendOutCards a try, with our 3-Card Sampler Plan! 3 Cards // $5.00 // Sent in 7 days! That's $.93 per card PLUS the stamp. Use the SendOutCards app or go to my website - either way, your FIRST card is FREE, then you can select the "3 Card Sampler" plan from the pricing page! #sendoutcards #3cardsampler #easy2sendcards #promptings #greetingcards #millennials #GenX #GenY #babyboomers #sendit #gratitude #appreciation