PORT WASHINGTON, N.Y. -- Millennials’ spending on gift cards at mass merchants, convenience stores and warehouse clubs is higher than that of other age segments, according to The NPD Group Inc., which has partnered with the Wharton School’s Baker Retailing Center on a study analyzing purchasing behavior of millennials, generation X and baby boomers. Gen X shoppers spend a greater share of their department store expenses on gift cards compared to other generations.
The partnership combines insight by the Wharton School of the University of Pennsylvania’s Baker Retailing Center and NPD Group’s Checkout Tracking data to address retailers' demand for comprehensive profiles of consumer buying behavior.
Led by Denise Dahlhoff, research director at the Wharton School’s Baker Retailing Center, and NPD Checkout Tracking director Sarah Wittenborn, the study uses historical purchasing data submitted by the same consumers over time. The research shows distinct differences in purchasing patterns across age groups.
Gas purchases and grocery shopping are by far the most frequent uses of convenience stores. Other notable categories for this channel are foodservice items and gift cards.
Boomers use convenience stores mostly to get gas (almost 65% of expenses). Grocery and foodservice shopping at c-stores is particularly strong among millennials (almost 25%), driven by older millennials (between 25 and 34) and those with kids. Food purchases are also important for gen X (almost 22%).
Compared to other shoppers, millennials, especially those without kids, and older millennials, spend a notably higher share of their convenience store expenses on gift cards.
At mass merchants, younger millennials (18 to 24), have a stronger focus on technology, video games and accessories. Online, they share an affinity for brands such as Apple and GrubHub. When shopping online, older millennials spend relatively more through Seamless, a foodservice delivery app, and Asos, among others. The online shopping habits of boomers, between the ages of 45 and 64, seem to be influenced by their offline preferences. These consumers spend relatively more of their online expenses with department stores such as Neiman Marcus and Macy’s.
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