Generation Y Shoppers Put Fashion First

Marketers for retail boutiques such as American Eagle and Hollister will find their work paying off this holiday season. According to a new poll released by Maritz Research about the holiday buying habits of Baby Boomers, Generation X, and Generation Y, most Gen Yers are willing to spend their coveted disposable income at stores that are fashion-forward and technologically savvy. By far the largest consumers of multimedia, its no surprise that stores such as Best Buy and the Apple Store/iTunes are also high on the list of destinations for Gen Y shoppers this season. Along with American Eagle and Hollister, stores such as Victoria’s Secret, Abercrombie & Fitch, and even Macy’s have attracted the attention of Gen Y customers more than any other generation.

Macy’s, with a younger and hipper image fueled by a recent national TV campaign, has successfully intrigued Generation Y enough be one of the only department stores mentioned by Generation Yers in recent shopping trend polls. While the National Retail Federation (NRF) asserts that around 61% of Gen Y shoppers plan to patronize various department stores, look for the bulk of their expendable cash going to the various specialty and technology stores previously mentioned.

Attracted to the easy transactions and the possibility of finding great bargains, young shoppers will be more likely to shop from home this year than ever before. Nearly half of the consumers surveyed by the NRF reported planning to shop online for gifts this year, with the bulk of these consumers being Gen Yers. Research is also a key component of Gen Y shopping habits. Marketers would be well advised to carefully construct their web presence this holiday to season in order to highlight the specials, savings, and key statistics that consumers want to know before making a purchasing decision. According to the NRF, almost 88% of shoppers will research high-involvement items, such as electronics, online before going out to purchase them.

While discount stores (Wal-Mart and Target) are a popular destination for all consumers, expect Baby Boomers and Gen Xers to populate these destinations more than Gen Y.

If the financial forecasts are correct, $450 billion is at stake for retailers this season. With Gen Y ranking just under Baby Boomers and Gen X for disposable income, it will be up to retailers to make sure that they stay ahead of the latest fashion trends and technological innovations in order to keep the Gen Y shoppers satisfied and the cash flow constant in the coming weeks.