Top 7 Things You Should Know About Millennial Grocery Shoppers

May 14, 2018

We know most Millennials are tech-savvy consumers who are interested in sustainability, retailer transparency and making healthy lifestyle choices. How does this translate to their grocery shopping preferences and spending habits?

This week, we are listing the top 7 things you should know about millennial grocery shoppers. You can check out our Intro to Millennials article here if you need a primer on Millennials.

#1.  Brand ethics can make or break a sale.

Millennials love choices. When facing a choice with similar prices and quality, the tie-breaking decision is contingent on the integrity of the brand at stake. The Millennial shopper takes brand authenticity, transparency and connectivity into account when deciding what to purchase. Does Brand X have an online presence that shares information about how its products are sourced or company sustainability practices? If Millennial shoppers can find this out about Brand X but fails to find anything on Brand Y, Brand X will get their business.

Takeaway point: Launch marketing campaigns that promote both store and store product’s authenticity and transparency. Use all channels, including digital and in-store signage, to communicate the information Millennials are looking for to make purchase decisions.

#2.  Prepared food is king.

Almost 2/3 of all Millennials buy prepared foods from some type of restaurant on a weekly basis. Millennials spend the least amount of food prep time of the older generations and allocate the biggest portion of their budgets to prepared food.

Takeaway point: Grocers should focus on offering and marketing grab-and-go food options, from salad and hot food bars to meal kits to take-and-bake options. Use all channels to advertise these convenient meal options.

#3. Millennials are on the fast track.

Grocery shopping is not a leisurely activity. 58% of Millennials say that they accomplish their shopping as fast as possible. They average 23.4 minutes in the store, compared to 28.6 minutes for Gen X and 29.8 minutes for Baby Boomers.

Takeaway point: Look for creative ways to show how fast and easy shopping is at your store. Consider holding promotional events, such as races or your own version of the Supermarket Sweep gameshow.

#4. The hot and not-hot grocery categories are clear.

Millennials spend more money on pasta, sugar and sweets than any other generation. They tend to spend the least amount on meat and poultry. This fits with the Millennials’ preference for quick-and-easy food options—meat and poultry take more time to prepare than quickly consumable sweets and pasta.

Takeaway point: Understanding what Millennials are most likely to put in their baskets—and what they will exclude—makes it easier to advertise the right products to Millennials for more effective campaigns.

#5. Fizzy drinks are in, but soft drinks are out.

Millennials are driving the demand for carbonated and bubbly beverages. Health and wellness interests are keeping Millennials disinterested in traditional soft drinks.

Takeaway point: Grocers should carry a variety of beverages and promote healthier alternatives to soda across their channels.

#6. They are selective spenders.

Millennials spend an average of $298 on groceries per month. Almost half of all Millennials—48%--say they will switch brands for a better deal. They also use grocery coupons at a higher rate than any other generation.

Takeaway point: Brand loyalty is not a factor for Millennials. Make it easy for your Millennial shoppers to find coupons and your store sales.

#7. Technology plays a role in purchases.

We know that Millennials are tech-savvy shoppers. But technology isn’t just impacting how they shop—it’s also influencing their decisions. Social media influences purchase decisions and attitudes towards healthy lifestyles. 75% of  Millennials say that branded websites are a primary source of shopping recommendations and 70% of Millennials say that online consumer reviews are their other main source of trusted shopping recommendations.

Takeaway point: Grocers should look for ways to share and promote user reviewers. This includes paying close attention to reviews posted on grocers’ channels such as Facebook, Google and Yelp and responding promptly to both compliments and praise.

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