Are Millennials Really Driving Retail Sales?

Jeff Rinkov: “From the standpoint of national retailers, I don’t think we have seen a huge trend away from where they will spend their money.”

LOS ANGELES—Like the office and multifamily asset classes, retail is evolving to fit the needs of the millennial demographic. Retail is becoming more entertainment and restaurant focused and—to compete with online retailers—brick and mortar retail is more experience driven. With all of these changes, one would imagine that millennials are driving retail sales in a big way, but Jeff Rinkov, CEO of Lee & Associates, says exclusively that national brands aren’t focusing their advertising dollars on the demographic.

“Millennials have a huge impact in the market and maybe on retail trends, but if you were to ask an advertiser about where they want to spend their money, it is professionals, typically males, who are 30 years old to 50 years old,” Rinkov tells GlobeSt.com. “They have more earning power and more discretionary dollars. I think the millennials have been forced to create their own communities, and I think that they are driving more online sales and more local business sales. From the standpoint of national retailers, I don’t think we have seen a huge trend away from where they will spend their money.”