Millennials are at the cusp of their prime spending years, and all industries should make note of it considering that millennials are also one of the largest generations in history.
- Millennials were born between the years 1982 and 2000. [Source: US Census Bureau]
- Millennials account for 83.1 million of the US population. [Source: US Census Bureau]
- Over 40% of Millennials are parents. [Source: Think With Google]
- 88% of Millennials live in metropolitan areas. [Source: Pew Research Center]
As seen with numerous mall and store closures, the retail industry has taken one of the largest hits. However, there is still time for retailers and investors to implement some strategic moves to cater to the needs and desires of millennial shoppers.
In general, millennials have a stronger preference for “experiences” over “things.” They are into immersive experiences such as travel, cooking, camping, fitness, and pet ownership. What does this mean for retailers and investors in retail? Now is the time to look into ways to evolve and adapt to stay relevant.
For many smaller businesses, this means making changes such as accepting contractless mobile payments, investing in a social media strategy, and offering a seamless shopping experience between online and in-store. Sometimes it’s the shopping environment itself that would need to be updated. Many brands are now gearing towards having a cleaner, sleeker, more relaxed look in their stores.
Then there are the big leagues, such as the properties owned by the family-owned Triple Five Worldwide group. Triple Five is a conglomerate that specializes in shopping malls, entertainment complexes, hotels, real estate and banks. They focus on creating successful mixed-use developments and activities worldwide and encompass the development, management, and ownership of world wide-scale ventures in many fields. It is run by the Ghermezian family. This family is known for having developed, owning and managing the world’s top three largest tourism, retail and entertainment complexes of its kind:
- West Edmonton Mall in Canada
- Mall of America in the United States
- American Dream Meadowlands in East Rutherford, New Jersey (near completion.)
Yonah Ghermezian is the Owner/Partner of the Triple Five Group, which got its start in 1965 by the family patriarch, and has been family-run ever since. On the complexes mentioned above, Ghermezian says, “These three projects will attract over 112 million visitors annually. The annual visitors are more than the following attractions combined: Disneyland, Walt Disney World, Times Square, NY, the Las Vegas Strip, the French Quarter, NO, the Grand Canyon, and Yellowstone National Park.”
The Ghermezian family put major plans into action with the American Dream Meadowlands. The three-million-square-foot complex will consist of 55% entertainment and dining facilities, and 45% retail locations. Sections of it have already opened in stages, and it is expected to be fully open for business by the end of March 2020. It has already become a staple in conversations due to its grandiose amenities.
The entertainment offerings in American Dream Meadowlands include full-size parks in partnership with the likes of Nickelodeon, DreamWorks, and Legoland. There will also be rock climbing,a ice rink, an aquarium, a concert venue, an indoor ski slope, and many more attractions all in that central location. There are also ambient offerings, such as grand atriums that are flooded with natural light, (with some even housing birds and rabbits,) areas designed with social media photography in mind, and museum-scale interiors that feature the artwork of both local and international artists. There is also a 60-foot fountain, lights, and music.
“The purchasing power and brand preferences of millennials is expected to come into full effect in 2020 when their purchasing power is projected to reach $1.4 trillion,” says Yonah Ghermezian. “Humans (from a very general standpoint) went from being hunter and gatherers, to farmers, to factory workers, to office employees, and now… to experience seekers that have created the new experience economy. Research shows that 72 percent of millennials would rather open their wallets based on experiences over material items. They are more worldly compared to past generations, and gain the most happiness from experiences. That is why we made an assortment of experiences the focal point of American Dream Meadowlands. From the millennial viewpoint, it is these experiences that become one with them and help improve their lives in ways that disposable material items just can’t compare.”
This is the shift in priorities and viewpoints that investors and retailers alike must keep in mind as they undergo a transformation as we begin a new decade. How can the shopping trip be transformed into an experience?