What: Baby boomers emerge as overlooked luxury powerhouse, holding 50% of US household wealth while demonstrating distinct shopping behaviors and category preferences.

Why it is important: This analysis reveals a significant opportunity for luxury retailers to better serve a wealthy demographic through targeted strategies combining heritage messaging with personalised service.

Baby boomers, holding half of the US's USD 140 trillion in household wealth, represent an underserved opportunity in luxury retail. Despite their significant spending power, which exceeds Gen X's wealth by more than double and millennials' by fourfold, this generation has been largely overlooked in luxury marketing. Their shopping behavior shows strong brand loyalty and preference for in-store experiences, though they're increasingly adopting digital channels, with TikTok usage growing 128% since 2020. The generation demonstrates distinct category preferences, shifting from fashion to experiences, travel, and wellness spending. Their connection to luxury's "golden era" of the 1990s drives preferences for heritage, craftsmanship, and quality, while demanding high-touch clienteling services and personaliSed experiences.

IADS Notes: The revelation that baby boomers hold 50% of US household wealth (USD 140 trillion) while being largely overlooked by luxury marketers signals a significant opportunity in the sector. The generation's distinct shopping behaviours, including strong brand loyalty and preference for in-store experiences, mirrors November 2024's analysis of retailers balancing traditional approaches with new engagement strategies. Their shift toward experience-based luxury spending and wellness, combined with the need for heritage-focused messaging and high-touch clienteling, reflects August 2024's observations about the importance of creating unique shopping experiences while maintaining brand heritage.

Understanding the baby boomer consumer