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ALL THOSE YEARS TO GO

Just like surfers idling in the Pacific Ocean 25 miles away, Chow is poised to ride a wave.There's one critical difference, however, between the wet-suit-clad groups waiting patiently for the next breaker and the market/cafe in Lafayette, Calif., just east of San Francisco. Chow's wave is guaranteed: From early morning until late at night, day after day, the place fills up with all sorts of people.

Just like surfers idling in the Pacific Ocean 25 miles away, Chow is poised to ride a wave.

There's one critical difference, however, between the wet-suit-clad groups waiting patiently for the next breaker and the market/cafe in Lafayette, Calif., just east of San Francisco. Chow's wave is guaranteed: From early morning until late at night, day after day, the place fills up with all sorts of people. But the predominant age group patronizing the aisles and tables is decidedly an older, affluent and confident crowd.

"It's a boomer market. You go in and you see the future," said Mary Furlong, president of MF & Associates, a marketing firm that specializes in older consumers.

The cafe is pet-friendly and welcomes children -- or grandchildren, as the case may be. It serves organic food, niche beverages and fresh desserts. A wine bar pours local vintages and acts as a neighborhood gathering spot. Next door, a retail outlet offers organic produce, hard-to-find gourmet items and small indulgences, though everything possesses a hint of being better for you and healthful.

Without a doubt, Chow exemplifies the boomer lifestyle today, and demonstrates the role food plays. Even better for retailers, food is likely to become increasingly important as this group of consumers approaches a milestone: The first swell of those born between 1946 and 1964 starts turning 60 on Jan. 1, 2006. Industry observers say the implications are enormous.

Supermarkets Prepare

The wave of older shoppers about to break will flood the retail landscape with very different consumers, 77 million strong -- more than one-quarter of the entire U.S. population. In the coming years they will exhibit shifting biological, psychological, social and economic characteristics, needs and expectations. As they transition to leisure and retirement, they will make food a bigger part of their lives: food as medicine, food as fellowship, food as passion. Smart supermarketers are already laying the groundwork.

"They're looking for it all. They've got time on their hands, they certainly have the smarts," said Mike Proulx, president of Bashas', Chandler, Ariz.

He added that so far as boomers are concerned, the forecast for Arizona is bright. The Southwest's climate, affordable real estate and solid health care system interlock nicely with the generation's desire to stay active as they transition from full-time work to semi-retirement and beyond.

"They're going to be a driving force in this area for years to come."

The 156-store chain is getting ready to open a new banner, Ike's Farmer's Market, a combination fresh food/whole health store that focuses on select categories that coincidentally also appeals to boomers. Other progressive operators are following suit.

Karen Peterson, special projects manager for Food Lion, Salisbury, N.C., noted that its year-old Bloom concept might be considered boomer-friendly. It taps into modern shopping trends by emphasizing convenience and freshness in a logical, eye-pleasing environment.

"The name Bloom alone, we believe, signifies rebirth, revitalization and vitality," she said of the five-store chain. "While we offer healthful options throughout the store, we have several specific health and wellness offerings. One is our signature Nature's Place section [that] offers natural and organic products. We also offer our customers organic produce and natural meats."

The stores also have an expanded variety of over-the-counter medications and high-quality bath/body and professional hair care products.

Even national chains like Safeway are putting forward new programs and strategies that anticipate lasting, decades-long changes in the way Americans shop and eat.

"If you have a consumer-friendly environment, you're going to have an environment friendly for everyone, including our baby boomers and seniors," said Teena Massingill, spokeswoman for the Pleasanton, Calif.-based chain. The nation's No. 5 retailer earlier this year launched a $100 million rebranding campaign to let people know it has more than typical supermarket fare. The boomer-tinged theme, "Ingredients for Life," includes new ads, a new slogan and a new identity. Two years in the making, it focuses on higher-quality produce, meat, bakery and deli products; Safeway's proprietary brands; prepared meals and enhanced customer service.

Keeping Busy

Either in-store or online, retailers can expect a crowd.

"Boomers already tend to shop a lot," said Todd Hale, senior vice president, consumer insights, ACNielsen. "They've got a lot more time on their hands, for the most part, so shopping is not something they avoid."

Analysts agree food retailers will benefit most if they start tweaking their businesses now, tailoring at least part of their inventory and services to aging Americans. It's a long generation, spanning nearly 20 years, and the group is supported by advances in medicine, technology and education that will likely keep them out and about for some time.

"You have fewer seniors retiring, and they're just as busy when they retire as they were when they were working," noted Massingill. "The focus is simply different."

Indeed, a "very large population" of people over 50 regularly uses Safeway.com and the retailer's delivery service, she said. While some are shut in and unable to get out, reports from delivery personnel suggest more of them are just too busy to go grocery shopping. For them, the phrase "young at heart" takes on a whole new meaning.

"When you think about the boomers, you see hobbies and crafts growing, travel growing," noted Ellen Marram, managing director of North Castle Partners, an investment firm specializing in businesses that address healthy living and aging. "They are the primary movers behind this. We have a generation of very active retirees that, while they may not be going to work every day, they might still work at least part time."

Analysts covering the boomer market say smart retailers will be richly rewarded if they start considering today any capital investment that makes stores more appealing. Among the strategies:

Build smaller stores in more convenient locations and develop specialized formats, like Bashas' Ike's, or Publix's GreenWise market, also under construction.

Create special hours of operation that cater to seniors with additional floor help and service personnel.

Improve product assortment, which is already changing with smaller package sizes for empty-nest households, with similar modifications likely.

"In the natural foods stores, there's almost always someone available in the aisle to help educate and explain product choices," Marram continued. "That's not a model that has taken real hold in traditional supermarkets. If they are hoping to capture share of pocketbook of these consumers, they'll need to increase their education efforts."

The current staffing/education gap between natural food retailers and mainstream supermarkets is threatening to widen even more, as health and wellness trends not only migrate from one format to another, but accelerate and gain momentum.

New Tools

Technology is one way conventional stores can remedy the boomer desire for service and accommodate their burgeoning need for information that matters to them. Luckily, computers, e-mail and the Internet are communication devices they're comfortable with.

"They're incredibly wired and as they start to retire, they're going to use technology to enhance their lives," Furlong said. Some of the new supermarket formats recently introduced include more sophisticated gadgets that simplify the shopping process, speed trips and make touring the aisles more fun -- provided one knows how to use them.

"Not everyone may want to use technology like the personal scanner, but it is popular and people do use it to scan their own groceries and simplify the checkout process," said Peterson of Bloom's shop-along devices, which also use scanned item data to suggest wine pairings and provide recipes for many products. Technological advances are present elsewhere.

"Our produce scales and meat kiosks provide nutrition information," she continued. "In the pharmacy locations, we provide health kiosks that track blood pressure, weight and body mass reading. At these locations, we also offer periodic screenings and clinics."

Boomers are smart shoppers in their own right, and have shown some peculiar traits. While they might have more income to spend on costlier foods like organics or imported goods, they also like to save money where they can, to finance more extravagant purchases of things they're not willing to compromise on, like travel, according to some recent surveys.

"We were surprised to see that some are actually going to the supercenter channel with the same frequency, in terms of leaving the grocery channel to go to supercenters, that the average American household is," said Hale of ACNielsen, referring to a recent study of older shoppers. "We thought big boxes wouldn't necessarily be the right thing for them."

Eating It Up

Industry observers believe more of these types of surprises are in store as the baby boomers solidify their purchasing power as a group. This will be especially apparent in outlets like supermarkets, gourmet stores, restaurants and other eateries.

"When they retire from their 7-to-7 jobs and start on the next phase of their lives, food is going to fit in their new mosaic as a hobby, and for preservation," said Furlong, who is co-author of the forthcoming book, "Turning Silver Into Gold," which examines the segmentation of the boomer marketplace. "They're going to be just as avid about their leisure time pursuits as they were about their jobs."

Marram's firm, North Castle Partners, currently invests in six verticals in which food plays a role. There's a primary focus on health care, but funds are also put into areas like weight loss and travel.

"We're equally interested in the kinds of things people do that aren't traditional -- like fitness and exercise," she said. "It's reflective of the fact that this generation in particular is in denial about getting old. It's a generation looking to stay physically healthy as long as possible and still grow mentally."

Healthful food choices often top the boomer's list of remedies. At Bashas', most stores include a Natural Choice store-within-a-store. Here, the retailer clusters most of its health and wellness products and services. However, a conscious effort is made to spread the elements of Bashas' whole health platform throughout the store to attract as many customers as possible, especially older ones who might not be familiar with such merchandising trends as segregated sections, Proulx said.

"We use a holistic approach. We have the pharmacy, meat and produce and our natural sections," he said. "We also use specific signage up and down the aisles that identifies where heart-healthy might be, or items for diabetics or for weight loss."

Bashas' also operates Health Styles, a program that brings in medical or clinical professionals for in-store events. These might include mammograms or flu shots, eye tests or diabetes screening. "This is something our customers want and certainly the response shows it is," Proulx said. "They want even more things, so we're always looking for ways to develop it further."

Bloom's Peterson said the nascent chain underwent a redesign earlier this year, after a period of customer feedback. Shoppers wanted more of a full-service supermarket, rather than a special-trip destination. As a result, the retailer expanded product selection by more than 2,500 stockkeeping units, added variety in produce, installed fresh seafood (including live lobster), and introduced natural pork and poultry to the meat case, among other things.

On the employee side, Bloom trained associates and renamed them "taste ambassadors." As such, they find products, help customers navigate stores and provide ideas on foods and beverages. It is the antithesis of technology, but just as effective, Peterson said. Boomers like choice.

Forever Young

When all is said and done, after all the charts and graphs are discussed and motives examined, perhaps the single most important key to understanding boomers lies in realizing they want to keep doing tomorrow what they are still capable of doing today. That includes working, traveling, playing sports and being active, and enjoying a vibrant social and sex life.

"The previous generation wanted to go to Florida and relax," Furlong said. "This generation is paying more attention to aging. The notion that we can use drugs and medication, and food and exercise, to add 10 and 15 years to our lives is very appealing."

And unlike prior generations, boomers have been at the forefront of developing the very technology and products helping them attain each longevity goal. In short, they are, at once, both producer and consumer of the products and services.

"I think the boomers have already had a significant impact on the food industry in terms of people being more knowledgeable about what they're eating, more concerned over ingredients of the foods, and perhaps more conscious of portion control," said Marram, who considers herself a boomer. "And the level of concern is only going to increase as they grow older."

In her talks and discussions, Furlong said she seeks to remind retailers that boomers will be going through an awful lot of changes during the next 20 years, entering more life-stage transitions than any other time in their lives. However, unlike their parents and grandparents, the boomer generation is the first to possess the knowledge and tools that allow them to use food to their health advantage, not just sustenance.

"These transitions really cause you to re-evaluate everything," she said. "That's when you pick up on healthy living, because you realize it's the pathway to longevity."

Marram agreed, saying, "Science is going to keep teaching us different and new things regarding the importance of diet and health."

That a long and healthy life is the goal of every boomer is entirely understandable, Furlong said -- and shows yet again why food is so integral to their lives.

"A lot of the boomers are dating again. The No. 1 thing they don't want to do is look too overweight when they post their personal ad at 60."

MATURE MATTERS

Younger Boomers [Born] 1956-1964; Older Boomers [Born] 1946-1955

Estimated spending power: $1.1 trillion; $1 trillion

Total households: 23.9 million; 21.9 million

People in household: 3.3; 2.7

Children under 18 in household: 1.3; 0.6

Average household incom: $56,500; $58,889

Average household spending: $45,149; $46,160

Source: MetLife Mature Market Institute

MEDICAL MATTERS

Percentage of boomers with...:; Younger Boomers; Older Boomers

High blood pressure: 14%; 26%

High cholesterol: 12%; 19%

Diabetes 5%: 11%

Heart disease: 2%; 4%

Source: The NDP Group, Profile of American Baby Boomers: Health, Diet and Consumption Behaviors and Attitudes