What: Korn Ferry argues that while retailers have for long focused on the younger generations, the retiring Boomers might be a pocket of growth for the coming years.

Why it is important: This is exactly what was discussed at the last IADS CEO meeting in London.

Retailers, traditionally focused on marketing to younger customers, are now recognizing the significant spending power of senior citizens. Since the pandemic, seniors in the US have accounted for 22% of all retail spending, despite being just 17% of the population. This surge in spending by baby boomers, now the wealthiest segment in society, is attributed to factors like paid-off mortgages and student loans, less financial support needed for children, and being less affected by recent interest rate spikes. Many are also working later into life, maintaining full-time incomes.

However, attracting spending from seniors is challenging. They tend to have established needs in terms of clothing and furniture and are often cautious about splurging on luxury items due to concerns about future expenses. Retailers are advised to focus more on what seniors want, like unique customer experiences and health products tailored to them.

There's a growing trend towards offering experiences in travel, entertainment, and active senior living with various amenities. This shift aligns with seniors' desires for hospitality-driven environments and activities suitable for their lifestyle. While it's uncertain whether this emphasis on experiences is a temporary effect of pent-up demand from the pandemic or a long-term trend, it's clear that enticing senior customers will require exceptional products and innovative experiences.

Catching the new big spenders