Grocers Must Draw Millennial Shoppers

NEW YORK — Supermarkets should shrink Center Store, add to their organic store-brand mix and enhance digital offerings to appeal to consumers ages 18 to 31, concludes a study by global investment bank Jeffries and business advisory firm AlixPartners.

The “Trouble in Aisle 5” research indicates Millennials are 18% less likely to shop at traditional grocers and given their willingness to explore alternate channels grocers need to make changes to attract them.

“You want to go fresh. You want to have a very robust private-label program, particularly private label that speaks to natural and organic trends. You also want online capability like online delivery and to be engaged with smartphones,” Scott Mushkin, managing director and senior equity research analyst covering food and drug retailing and packaged foods at Jeffries.

SN Shopper Marketing Report: The Millennial Shopper

Mushkin cited Safeway as a best practice example and acknowledged that shelf-stable brands like McCormick are taking the lead as they vie for coveted perimeter space besides complementary fare.

The demographic is key since Millennials over 25 (the age at which income and household formation start to accelerate), will make up 19% of the population by 2020, up from 5% in 2010, according the U.S. Census Bureau.