81% of Millennials’ retail spending occurs in brick-and-mortar stores, reveals The NPD Group in a new study covering shopping activity from May 2012 to April 2013. In fact, slightly more than half of Millennials (13-33) shop in-store during a typical week, and the group accounts for more than one-third of all US shopping visits. Interestingly, though, Millennials are less likely to make a purchase while they’re in-store than older generations, and they spend more per visit online than in a brick-and-mortar store.
Millennials have a 57% in-store conversion rate (percentage of shoppers who make a purchase), according to the study, significantly behind the corresponding rates for Gen Xers (34-48; 66%), Boomers (49-67; 69%) and Seniors (68+; 72%). That could be related to an increased propensity for showrooming among the younger group, even if recent research has shown webrooming to be more prevalent than showrooming among Millennials.
While the NPD Group research shows most of Millennials’ retail dollars are being spent in-store (not surprising, given that e-commerce is still a minority of total retail spending), the study also finds that Millennials spend significantly more per online ($75) than in-store ($57) visit.
Finally, Millennials are far more likely to shop at mass merchants than at apparel stores or national chains, and can most often be found purchasing apparel, beauty, and health products.