While Internet stores seem to be getting all the attention, shoppers spend their money in brick-and-mortar stores – and that includes the Internet generation, according to a survey from the NPD Group.
The new report, “Winning the Fight for Millennial Shoppers,” 81 percent of Millennials’ retail spending is in stores, and only 19 percent shop online.
More than half of Millennials shop in-store in a typical week. Even though this group of consumers spends more time online and more time shopping, they have the lowest conversion rate of all generations at only 57 percent.
“Millennial shoppers have the lowest shopping conversion rate because they are the most selective as well as the most economically challenged,” said Marshal Cohen, chief industry analyst at NPD Group.
Value-oriented retailers within the dollar store, second hand, drug store and off-price channels, who appeal to Millennials on tight budgets, are getting more of them into their stores. But dollar stores and second hand stores have also been more successful than other channels at converting Millennials to purchase this year.
“Millennial shoppers are the most elusive generation and the most challenging to keep engaged. In order to get more Millennial consumers in store, retailers need to understand how Millennials’ shopping habits differ from other generations. Previous generations were more easily impressed by marketing and advertising strategies. With this group you must have a strategy to grab their attention in- and out-of-store,” Cohen said.