US Consumers in 2025: What's in Store for Retailers

US CONSUMERS IN 2025: WHAT’S IN STORE FOR RETAILERS?

MICHELLE GRANT HEAD OF RETAILING

CONSUMERS IN 2025

SHOPPING PREFERENCES IN 2015

KEY TAKEAWAYS

Source: ThinkStock

© Euromonitor International

3

The US consumer will look different in 2025 CONSUMERS IN 2025

Urbanization

Households

Diversity Aging

Income

http://www.euromonitor.com/


4

27% of Americans will live in the 10 largest metro areas CONSUMERS IN 2025

0

5,000

10,000

15,000

20,000

25,000

2015 2025

‘00

0 p

eo

ple

Population by Metro Area

New York

Los Angeles

Chicago

Dallas

Houston

Philadelphia

Washington DC

Miami

Atlanta

Boston



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Other

Couple w/ children

Single parent

Couple w/out children

Single person

Households without children will grow the fastest

CONSUMERS IN 2025



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0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

2015 2025

‘00

0s

pe

op

le

Population by Ethnicity & Race

Hispanic-other

Hispanic-Black

Hispanic-White

Non Hispanic-other

Non Hispanic-Black

Non Hispanic-White

The US will be more diverse CONSUMERS IN 2025



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50,000

55,000

60,000

65,000

70,000

75,000

80,000

‘00

0s

of

pe

op

le

Population by Generation

Generation Z

Millennials

Generation X

Baby Boomers

The rise of the Millennial and Gen Z cohorts CONSUMERS IN 2025

Generation Z : Born between 1995 and 2009 Millennials: Born between 1980 and 1994

Generation X: Born between 1965 and 1979 Baby Boomers: Born between 1946 and 1964



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13.4

2.0

30.2

24.1

28.9

33.5

27.5

40.4

2025

2015

% of Gross Income by Generation

Generation Z Millennials Generation X Baby Boomers

Millennials will account for 30% of gross income

CONSUMERS IN 2025



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0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

20

15

20

16

20

17

20

18

20

19

20

20

20

21

20

22

20

23

20

24

20

25

US

$

Average Household Disposable Income

Richest Households

Middle Class Households

Poorest Households

Income inequality will persist CONSUMERS IN 2025


CONSUMERS IN 2025


KEY TAKEAWAYS

Source: ThinkStock


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Consumer Trends Survey

2015

Location Income Ethnicity Household

Type Age

Is today’s shopping behavior an indication of future behavior? SHOPPING PREFERENCES IN 2015



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Shopping experience

15 to 29 years old

Hispanics

African Americans

Households with kids

Who enjoys the shopping experience? SHOPPING PREFERENCES IN 2015



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Garden State Plaza

(NJ)

• BergenPAC partnership

• Luxury tenants

Westfarms Mall

(CT)

• New app • Exclusive

tenants

King of Prussia

(PA)

• Better dining options

• Indoor skydiving

Shopping centers are evolving


The New Mall



14 SHOPPING PREFERENCES IN 2015

74% of Americans say they like to find bargains

Source: ThinkStock



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Brand 2010-15 %

Walmart Neighbourhood Market 236

Nordstrom Rack 111

HomeGoods 82

Ashley Furniture 70

rue 21 70

Dollar General 58

Forever 21 56

7 of the 20 fastest growing brands were value oriented SHOPPING PREFERENCES IN 2015



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0 10 20 30 40 50

$11,001 to $21,500

$21,501 to $43,000

$43,001 to $65,000

$65,001 to $108,000

Over $108,000

US Average

% of Respondents

I Tend to Buy/Shop More at Stores where I am a Loyalty Member

Loyalty programs are important to high income households SHOPPING PREFERENCES IN 2015


#1 US luxury retailer

40% Revenues come from InCircle status members

11x Loyalty members spend more than typical shopper


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Much more influential

• Social media advertising

• Celebrity endorsements

• Social media posts

Somewhat more influential

• Video internet ads

• Onsite marketing

• Ads on mobile phone

• Outdoor

• Geotargeted mobile ads

• Text based ads

Typical influence

• Family and friend recommendations

• In-store advertising

• Desktop ads

• TV commercials

• Radio

15 to 29 years old more influenced by emerging marketing platforms SHOPPING PREFERENCES IN 2015



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459,000 followers on Instagram

110,000 followers on WANELO

102,000 followers on Twitter

64,000 followers on Facebook

8,000 followers on Pinterest

On Tumbler and Snapchat

Shop Jeen knows social media SHOPPING PREFERENCES IN 2015


CONSUMERS IN 2025


KEY TAKEAWAYS

Source: ThinkStock


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The US consumer will be different in 2025 KEY TAKEAWAYS

New US Consumer

Urban

Households w/out

children

More diverse Older

Generations with equal spending

power

Unequal income

distribution



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Shop in stores

Look for value

Maximize their loyalty

Embrace new technologies

What will future US shoppers do? KEY TAKEAWAYS



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THANK YOU FOR LISTENING THANK YOU FOR LISTENING Michelle Grant| Head of Retailing

[email protected]

@EMI_MichelleG

www.linkedin.com/in/migrant1


mailto:[email protected]

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https://twitter.com/EMI_MichelleG

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US Consumers in 2025: What's in Store for Retailers