NEW YORK -- As convenience stores and supermarkets hustle to secure the visitation and loyalty of the coveted millennial consumer, new findings are emerging that show how shifts in the way this base uses foodservice is changing the game for retailers.
In a company release, the Private Label Manufacturers Association (PLMA) unveiled key takeaways from a nationwide survey of more than 1,800 millennial shoppers in the United States. In its report, “How America’s Eating Habits are Changing,” PLMA found that millennials largely eat during unscheduled occasions and factor food consumption into a wide range of daily activities.
This has led to a rise in snacking and sourcing smaller meals and bites from convenience stores and supermarkets. In addition to prepared foods and portable options becoming the priority, PLMA reports that millennials want these items to be “fresh and healthy,” as well as “done their way.”
There are a number of retail options available to millennials in search of food with these attributes, but PLMA’s research shows that, for this group, the primary destination is the supermarket. Nine of 10 millennials surveyed said they food shop in only one or two stores. And when they do, they specifically head to the dairy, deli and bakery departments. Three out of four shoppers buy deli items when they do their regular grocery shopping, 77% buy dairy items and 59% purchase goods from the bakery.
Asked about their foodservice purchases at both convenience stores and supermarkets, one-third told PLMA that they “always or frequently” purchase heat-and-eat foods; 29% say the same from prepared/ready-to-eat foods; and 27% select grab-and-go fare.
But what types of retail foods are they gravitating toward? While “fresh” is a ubiquitous descriptor that can mean different things to different people, it appears to still hold some sway for this demographic group. For meals or snacks, 57% say that they “always or frequently” opt for fresh fruits, 35% select fresh-baked bread or bakery products, 30% choose freshly prepared meals and 30% go for fresh, chilled salads in the deli.
Reflecting on these findings, PLMA pointed to an increased need for retailers to adapt to the preferences of millennials. This could range from offering more opportunities for them to sample foods in-store, or grabbing their interest via cooking demonstrations that show food being freshly prepared or by expanding selections of portable offerings.
And because millennials are now tightening their preferences and limiting their visits to only one or two stores when they shop, there is a wider avenue for retailers to promote their own store brands over national brands. According to the study, millennials report that their awareness of store brands and national brands are essentially the same, at 84% vs. 86%, respectively.
For retailers, addressing this finding is key, said Brian Sharoff, president of PLMA. “Store brands remain the retailer’s most potent weapon in developing strategies for this age group,” he said. “It offers flexibility and opportunities to be creative with product assortment and concept without waiting for national brands. But it requires an understanding of what this age group likes and will buy.”
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