Retail

Retail Innovation Is Not Just About Young Consumers

woman shopping with phone

When it comes to retail innovation, it’s not just young consumers who are driving change — so are older shoppers and an aging population.

Recent PYMNTS research about mobile commerce and how mobile technology informs the in-store purchasing experience provides fresh evidence for that view.

Sure, millennials and bridge millennials use apps the most for planning in-store purchases — 47.9 percent and 42.8 percent, respectively, frequent users. (PYMNTS defines bridge millennials as consumers between 30 and 40 years old. This group is more likely to have a college degree, be employed and earn higher salaries than other consumers.)

But other, older consumers are also taking part in the mobile revolution. Nearly 61 percent of baby boomers and about 37 percent of senior citizen qualify as either “frequent” or “occasional” users of mobile devices when it comes to planning trips to stores. According to the PYMNTS research, “frequent users use mobile apps to aid with in-store purchases at least once a week. Occasional users are use apps in such a manner once a month to a few times per year.”

Gig Trends

As well, the gig economy is also a place where older consumers are gaining more voice.

An app meant to promote community for baby boomers called Umbrella has raised $5 million in a seed round led by Thrive Capital, with participation from Alphabet’s Sidewalk Labs, Refactor Capital, Trailmix, Box Group and others.

VentureBeat reported that there are 55 million people in America who are 65 or older, which represents about 16 percent of the country’s population. That age group grew about 15 percent in the last census, which is more than any other segment of the population.

Umbrella is an app that’s meant to connect these people with each other, through a marketplace with a membership model. The app lets seniors sign up for “jobs” and provide their services, like mowing a lawn or painting a fence.

Nutrition Push

Subscription commerce is another place of change driven by older consumers.

Indeed, eCommerce innovators are offering plant-based nutrition beverages designed for baby boomers and their parents with the help of the subscription business model. Take Perennial, which Co-Founder and Co-CEO Sara Bonham described to PYMNTS as a progressive health company that is creating foods and beverages for consumers age 50 and older “by leveraging the endless kind of power of plant-based input.”

Bonham, along with fellow Co-Founder Brent Taylor, discovered the company could go beyond animal protein “and really address more personalized solutions for healthy aging.” The company currently makes a non-dairy nutrition beverage that is a blend of protein, vitamins and fiber, which supports daily gut, bone, brain and muscle health. The beverage is said to not have artificial colors, sweeteners or flavors, genetically modified organisms (GMOs) or animal products. The goal, Bonham said, is that people will consume it every day — put in their oatmeal or drink it after they work out. “It’s super functional,” she said. “It has a clean taste.”

On Perennial’s website, the company seeks to make its brand purpose front and center. On the home page, consumers can read about how the product is designed for daily consumption and crafted for the modern adult. To purchase the product, consumers can visit the shop page via many different touchpoints, including a “try us now” button from the home page. At the order page, consumers can elect to make a one-time purchase or subscribe at a slight discount.

Sociologists refer to baby boomers and their parents as “perennials” (hence the name for the company). Lauren Loktev, who is a partner with the Collaborative Fund (a Perennial investor), said in an announcement that the company is one of a “handful” of firms innovating for this age group.

You can count on more retail outreach to such consumers in the decade to come.

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