Millennials have been painted as the “experience-driven” generation, but a new study suggests that millennials still like to shop.
In a survey of 2,500 U.S. consumers, Pymnts.com found that older millennials are becoming a key market for the fashion industry, making an average of over 18 apparel and accessory purchases per year.
While millennials at-large are not big spenders in this arena, older millennials spend almost as much as Gen Xers on new duds, boasting an average annual wardrobe spend of $2,225. These older millennials, or “bridge millennials” as the study calls them, love to use their mobile devices to do their research before making in-store purchases. They are sophisticated shoppers and quickly becoming a “sweet spot for retailers.”
As Baby Boomers grow older and Generation Xers start thinking more about retirement, bridge millennials are quickly becoming the main targeted demographic for retailers, driving the way they conduct business.
Retailers are fighting for their market share by changing the way they are engaging with these consumers, whether this means switching to a model of mini-stores that carry no inventory, providing complimentary champagne, or offering scan-and-go technology. Rather than introducing new rewards programs or special store-branded cards, retailers are focusing on tools to increase convenience and efficiency for these young shopaholics.
The way these consumers are paying suggests that many are at least trying to spend within their means. Over 48 percent of bridge millennials pay with either debit or cash. Similarly, almost 44 percent of millennials at-large pay with debit or cash.
The question still remains: does all this shopping mean that millennials are doing better financially? Not really.
Millennials tend to rate higher in financial aptitude than previous generations. About 39 percent of millennials in their 20s say their finances are better than they were five years ago, and 57 percent of bridge millennials say the same. However, this doesn’t mean they aren’t splurging.
Seventy percent admit to purchasing clothes they don’t need. Student debt remains at an all-time high, and 25 percent of 24-36 year-olds are living at home, increasing from over 13 percent in 2005.
Although unemployment is at the lowest it’s been since 2000, the net worth of millennials remains strikingly low. According to The College Investor, the average net worth of a 30-year-old is -$1,989. This number depreciates with age and is a meager $20,236 for 36-year-olds.
While millennials may be savvier shoppers than previous generations, they are not immune to the same impulse shopping that has plagued mankind since the dawn of fashion.
