GENERATIONS IN MOTION
Why Retail Must Rethink Generational Stereotypes
There's a fundamental shift happening in how we understand consumers, and it's forcing retail and commercial real estate to evolve beyond traditional demographic segmentation.
The Perennial Mindset
Gina Pell introduced the concept of "Perennials" in 2016: Individuals of all ages who live in the present, stay current with technology, and maintain friendships across generational lines.
This framework challenges the industry's obsession with generational labels and points toward a more nuanced truth: personas matter more than demographics.
Following the Money
While we need to understand generational preferences, the spending power story is clear:
- Gen X & Boomers have the most disposable income
- Millennials follow and Gen Z is emerging
Yet most retailers focus disproportionately on younger generations, potentially missing the mark on where real purchasing power resides. They are looking solely at LTV (life time value) vs. who can spend now and through the mid-term.
America is aging, and the spending power resides disproportionately with the 45+ crowd.
Where Generations Converge and Diverge
Universal Trends Across All Ages:
- Digital spending has crossed generational boundaries
- Health and wellness drive purchasing decisions
- Experience trumps material goods (a pandemic legacy)
- Community matters more than ever
Where They Split:
Boomers & Gen X prioritize travel, dining out, and family experiences seeking tangible moments of connection.
Millennials & Gen Z gravitate toward high-end groceries, dining experiences, and apparel that expresses individuality.
Gen Z specifically invests heavily in beauty, personal care, and home entertainment, curating their personal space and appearance.
The Gen Alpha Factor
By 2030, Gen Alpha will represent 11% of the global workforce. What makes them different?
- "Screenagers" who expect gamified, interactive experiences
- Visual communicators who consume and create content simultaneously
- Global citizens with unprecedented cultural connectivity
- Purpose-driven consumers who demand brands demonstrate clear social responsibility
Importantly, their Millennial and Gen Z parents are gatekeepers carefully curating their technology use. A dynamic that will impact retail strategy.
What This Means for Retail Real Estate
The implications are significant:
For Retailers:
- Technology investments must focus on enhancing service, not replacing it
- "Experiential" means harmonizing online and offline into seamless enjoyment
- Social commerce requires nimble inventory management
- Selling square footage will shrink while stores serve multiple purposes
- Success requires a Perennial mindset that attracts across generations
For Property Owners:
- Hybridization continues: flexible, modular, wellness-oriented spaces
- The parking lot is "the other experiential" opportunity
- AI and technology should aid the property experience
- Balancing micro-market personas will be critical
- E-commerce and brick-and-mortar are complementary, not substitutes
The Community Imperative
Perhaps most importantly, community is making a powerful comeback. True placemaking is community-driven, adaptable, inclusive, and transformative, not top-down, design-driven, or one-size-fits-all.
This matters because while technology connects us digitally, physical spaces that foster genuine human connection will differentiate winning retail destinations.
The Bottom Line
America is aging and diversifying rapidly. By 2030, the demographic landscape will look dramatically different. Hybrid work and shopping behaviors are permanent fixtures. Financial stability concentrates with Boomers and Gen X, while emerging generations bring new expectations and values.
The retailers and property owners who will thrive aren't those who chase generational stereotypes. They're the ones who recognize that a 60-year-old and a 25-year-old might share more in common as "Perennials" than traditional segmentation suggests.
As Keynes reminds us: "The truly dangerous thing is asking the wrong question."
Perhaps the question isn't "How do we market to Gen Z?" but rather "How do we create experiences that resonate with people who share values, regardless of age?"
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Nostalgic Restaurant Spotlight:
KENNY ROGERS ROASTERS
Founded in 1991 by the musician, Kenny Rogers and former KFC CEO John Y. Brown Jr., this wood-fired rotisserie chicken chain's first location was in Coral Springs, FL.
The chain grew to 350+ restaurants internationally and then faced a lawsuit in 1992 from Clucker's over claims that Kenny Rogers Roasters (KRR) copied recipes and menus. To resolve the suit, KRR purchased a majority stake in Clucker's in mid-1994.
John Y. Brown Jr. grew the chain to 425+ restaurants before selling his interests to a Malaysian-based company in 1996.
The usual story of significant competition (from the likes of Boston Market, KFC and others) as well as poor financial performance led the chain to file for Chapter 11 bankruptcy protection in early 1998 and was purchased by Nathan's Famous, Inc a year later.
After significant restructuring and closures only 40 locations remained in the U.S. by 2000.
Nathan's sold KRR to an Asian franchisee in 2008 and the last U.S.. location closed (California) on the last day of 2011.
Kenny Rogers Roasters continues to exist internationally, is headquartered in Malaysia and entered its newest market, Dubai, in early 2023.
