In a surprising turn of events, Millennials have sided with Wal-Mart Stores, Inc. (NYSE:WMT) despite expectations.
The millennial generation has proven yet again that they are very unpredictable. Analysts expected them to place their preference on other stores, and Wal-Mart stores would be the last option. Wal-Mart Stores, Inc. (NYSE:WMT) was ranked as the top preference for millennial 24 years old and younger.
The select group chose Wal-Mart as their preference over the likes of Kroger, Trader Joe’s, Costco, Whole Foods and Target. According to the report from InfoScout, Wal-Mart took the lead position partly due to its digital prowess. The report was completely unexpected especially from within the firm. The retail chain’s Chief Managing Officer Stephen Quinn told AdAge that there is an increasing need or the company to open a one-stop shop. He cited that the young group are usually occupied with things that take up their time including relationships and the need to mingle.
The report did not describe the actual product categories that pushed the ranking. Capturing the attention of millennial retailers is one the major priorities of retailers. This is because of their high spending capacity on products such as apparel. Maintaining a relationship with this particular group is thus important.
The strategy also extends to items within the grocery bracket. It is mainly aimed at creating loyalty with the subject group, particularly before they enter parenthood. During the child upbringing phase, the needs for more products grows and thus having loyalty with the group means more sales.
Millennials have gone against common stereotypes that have largely influenced the speculation so far. For example, despite them being oriented towards the digital world, most of them do not shop online or through their mobile devices. This is mostly because they face limitation to financing options such as credit. Limited funds thus translate to lower budgets that mostly don’t include shipping budgets.
Most young shoppers surprisingly still have a preference for physical stores. Wal-Mart Stores, Inc. (NYSE:WMT) has also been increasing its presence in the online retail market which has been instrumental for the company to identify the shopper’s interests.
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