Older consumers have learned new tricks in the pandemic
Companies had better keep up
BABY BOOMERS, aged 57-75, are as the name implies, plentiful. Healthier and more adventurous than similarly aged cohorts in the past, since 2018 over-65s have outnumbered the under-fives. They are also wealthier. America’s boomer-led households spend $64,000 a year, almost twice as much as those headed by youngsters born from 1997 onwards. Together with the earlier “silent” generation, they account for two-fifths of American consumer spending. Yet brands and retailers have long given older shoppers short shrift, focusing most of their attention on the wrinkle-free. As with many things, the pandemic is demanding a rethink.
For one thing, fear of covid-19, more deadly for the elderly, has ushered oldies online. Last year British over-65s made up 30% of consumer-goods purchases online, up from 20% in 2019. In August Britain’s Office for National Statistics reported that 65% of them had shopped online in the preceding 12 months, compared with 54% the year before. America’s over-65s spent 53% more on internet shopping than the year before, according to NielsenIQ, a research firm (see chart).
This article appeared in the Business section of the print edition under the headline "The boomer boom"
Business May 8th 2021
- Berkshire Hathaway’s questionable performance and governance
- Can human creativity prevent mass unemployment?
- America wants to waive patent protection for vaccines
- Older consumers have learned new tricks in the pandemic
- Apple may win a court battle but lose a regulatory war
- Private equity is losing its mystique
More from Business
Big tech’s great AI power grab
Alphabet, Amazon and Microsoft are on the hunt for new energy sources
Does Perplexity’s “answer engine” threaten Google?
Taking aim at one of the best business models of all times
How not to work on a plane
Hours without interruption and work to do. What could go wrong?