Millennials Have High In-Store Frequency, Low Purchase Conversion
PORT WASHINGTON, N.Y. -- Despite their passion for technology, new consumer research reveals that Millennial consumers spend more at brick-and-mortar stores than online.
According to a new report by market researcher The NPD Group, titled Winning the Fight for Millennial Shoppers, 81 percent of Millennials' retail spending occurs in stores, compared to only 19 percent online.
More than half of Millennials (53 percent) shop in-store during a typical week. However, even though this group of consumers shops in-store often, they don't always buy. In fact, Millennials have the lowest shopping conversion rate of all generations at only 57 percent.
"Millennial shoppers have the lowest shopping conversion rate because they are the most selective, as well as the most economically challenged," said Marshal Cohen, chief industry analyst for The NPD Group.
Dollar stores, secondhand stores, drugstores and off-price channels, which appeal to Millennials on tight budgets, are getting more of these consumers into their stores. Dollar stores and secondhand stores also have been more successful than other channels at converting Millennials to purchase this year, NPD found.
"Millennial shoppers are the most elusive generation and the most challenging to keep engaged. In order to get more Millennial consumers in-store, retailers need to understand how Millennials' shopping habits differ from other generations. Previous generations were more easily impressed by marketing and advertising strategies. With this group, you must have a strategy to grab their attention in- and out-of-store," Cohen said.