Marketing To Young Shoppers
Published: Wednesday, December 22, 2004
Helen Lau is picky about where she buys groceries.
She avoids conventional supermarkets, instead shopping at specialty chains that stock out-of-the-ordinary items and healthy foods, and offer a lively ambiance.
So when the 21-year-old college student was visiting Manhattan in mid-November she made sure to stop by a Whole Foods Market (NasdaqNM:WFMI - News) to buy some items and have lunch.
At home in Berkeley, Calif., Lau gets her groceries at Whole Foods and Trader Joe's, which is known for low-priced specialty foods. She gets only basics like milk and eggs at traditional chains like Safeway (NYSE:SWY - News).
Lau likes Whole Foods' wide selection of organic and natural items, particularly the prepared snacks and hot foods geared to her fast-paced lifestyle.
"It's a hipper experience and the atmosphere feels different ... more fun than in a normal grocery store," she said.
Lau is among a growing number of shoppers who buy most of their groceries at natural and organic food stores or other alternatives to traditional supermarkets. Stores such as Whole Foods, Trader Joe's and Food Lion's pilot concept called Bloom offer a more invigorating experience and contemporary milieu to time-pressed young shoppers and finicky baby boomers.
Only 9% of supermarket shoppers are between the ages of 15 and 24, while 72% are between 25 and 64, says Supermarket News magazine. But younger shoppers are still important. Since shoppers establish brand loyalty at an early age, if a chain draws consumers into its camp when they're young, they're more likely to be loyal through their lifetime, says Mary Pollack, editor and publisher of newsletter Supermarket Strategic Alert.
Also, this group is less price-sensitive than more mature shoppers. So chains can sell to them without spending a lot on promotions and with minimal markdowns, says Bill Bishop, president of Willard Bishop Consulting.
Though the average age of Whole Foods' target customer is between 35 and 55, it skews younger depending on its proximity to a college or university.
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