‘Generational’ Means More Than Just ‘Millennial’

INDIANAPOLIS—Put the concepts of generational change and retail together, and one is likely to come up with “millennials.” And yes, there is that, for indeed the cohort is having a say in the shape and direction of the retail market. But if you leave it there, you’re missing half the picture, says Scot Courtney, president of the Indianapolis office of Lee & Associates and head of the retail group there.

“There’s a generational shift, but it’s not demographic,” he tells GlobeSt.com. “In fact, the primary modes of retail shift every 20 years or so. For instance, the power center came of age in the ’90s.  Now it’s facing significant challenges, based primarily on Internet sales and the way people will shop for items such as office supplies and electronics.”

A common theme in the articles GlobeSt.com is researching in the weeks leading up to the RECon conference in Las Vegas, Courtney is adamant that brick-and-mortar retail is not going away. But, in the generational shifts that are an ever-lasting part of the market, “it is evolving,” he says. “Part of that evolution is the omni-channel way in which we shop. So retailers have to be on their game both in terms of online and bricks-and-mortar and satisfying consumer need in the most efficient manner.”

Indeed, he says, “As a consumer, the most frustrating thing is when a retailer isn’t completely integrated online and in their store. The expectation today is that this integration is a minimal standard.  It’s no surprise to see people closing stores and ceasing operations. If you’re not on top of your game, you will be impacted.”

Courtney believes that, like all shoppers, millennials like the experience of visiting a store, and that boomers are as likely as any cohort to use the web to shop. “Do retailers need to evolve to keep up with tech?” he asks. “Yes.  Will retail be different in the future? Yes. But people are social creatures and the marketplace has been with us since the dawn of time.  The experience of being out with other people and the social aspect of retail are all a part of that.  That’s why you see the emergence of the live/work/play environment.”

It’s also why you’ll see more and more restaurants crowding into mall spaces—to create that experience. “Anything that can provide a unique experience, or a unique setting—that is what the consumer values now and moving forward,” he says. “Sense of community is also very important.”

In this time of evolution, we might expect less exuberance in Las Vegas this year as we saw last year.  But what of 2018? “I don’t know what to expect for next year,” he says, beyond expecting a slightly less giddy vibe. “But I also don’t think it’ll be as doom-and-gloom as some people think.  We’re right in the middle of this retooling and there’s a lot more to go.  We won’t have all the answers for a while. It will be interesting to see how things evolve over the next 24 to 36 months.”