Today, the younger generations, including Gen Z and millennials, get the most attention in the investment community. Developers want to ensure they understand their needs because they account for over half of the national population.
Oftentimes, that leaves Gen X overlooked, who still represents a major portion of the economy. The group, which makes up the 45-60 year-old age bracket, accounts for 31 percent of in-store and online spending for retail while making up only 19 percent of the population, according to a recent study provided by ICSC. Stephanie Cegielski, vice president of research and public relations at ICSC, spoke about this further in detail at ICSC NEW YORK 2025, noting the trends of this generation and how they are neglected versus the younger generations.
"There's very little to no marketing toward our generation, by retailers, by most anybody," Cegielski, a fellow Gen Xer, explained.
"But when you look at influencer spending on social media, only 5% of it goes toward Gen X."
A GENERATION OF BIG LUXURY SPENDERS
While Gen X no longer represents the majority of the adult population and will continue to shrink — there might be upside for retailers to devote at least a little more concentration toward the age group. A big reason? They are big spenders. Gen X spends the most per shopper in store, averaging $71.92 per trip, outpacing the millennials' average of $70.16 and Gen Z's $37.61, according to the study.
That leads to the next point, which is understanding Gen X's patterns. It appears to be quality over quantity. On in-store luxury items, Gen X leads all groups with spending an average of $1,683.46 per shopper, compared to millennials at $1,630.40 and Gen Z's only $646.93. That tells you 45-60 year olds have money and are willing to spend it.
"We love our luxury goods," Cegielski emphasized.
"Those are where the dollars are at, and those are who should be targeted to buy them because they are buying them. Gen Z can't really afford that yet."
According to Cegielski, Gen X spends more on apparel, while Gen Z allocates more to clothing subscription services.
While in-store might seem the way to go to appeal to Gen X, don't ignore social media. The age group accounts for a dominant share of those using Facebook, according to Cegielski. That shows there's potential for marketing and advertising.
Some other things that retailers should know about Gen X are that they remain loyal to their preferred brands and are stressed as they inch closer to retirement.
So for retailers, this isn't to say to forget about the younger generations and shift the entire focus to Gen X — but think about the short-term potential. It's always about finding the right balance and capitalizing on undervalued sectors.
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