The document discusses trends in the US consumer landscape expected by 2025. It finds that by 2025, 27% of Americans will live in large metro areas, households without children will grow the fastest, and the population will be more diverse and older. Millennials will account for 30% of gross income by 2025, while income inequality is projected to persist. Currently, younger consumers and those with children enjoy shopping more, and value and loyalty programs are important. Emerging marketing platforms like social media increasingly influence younger consumers. Key takeaways are that the future US shopper will embrace an urban lifestyle without children, be more diverse and older, seek value, and maximize loyalty while embracing new technologies.

1. US CONSUMERS IN 2025: WHAT’S IN STORE FOR RETAILERS?
MICHELLE GRANT
HEAD OF RETAILING

2. CONSUMERS IN 2025
SHOPPING PREFERENCES IN 2015
KEY TAKEAWAYS
Source: ThinkStock

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The US consumer will look different in 2025
CONSUMERS IN 2025
Urbanization
Households
DiversityAging
Income

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27% of Americans will live in the 10 largest metro areas
CONSUMERS IN 2025
0
5,000
10,000
15,000
20,000
25,000
2015 2025
‘000people
Population by Metro Area
New York
Los Angeles
Chicago
Dallas
Houston
Philadelphia
Washington DC
Miami
Atlanta
Boston

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Other
Couple
w/
children
Single
parent
Couple
w/out
children
Single
person
Households without children will grow the fastest
CONSUMERS IN 2025

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0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
2015 2025
‘000speople
Population by Ethnicity & Race
Hispanic-other
Hispanic-Black
Hispanic-White
Non Hispanic-other
Non Hispanic-Black
Non Hispanic-White
The US will be more diverse
CONSUMERS IN 2025

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50,000
55,000
60,000
65,000
70,000
75,000
80,000
‘000sofpeople
Population by Generation
Generation Z
Millennials
Generation X
Baby Boomers
The rise of the Millennial and Gen Z cohorts
CONSUMERS IN 2025
Generation Z : Born between 1995 and 2009
Millennials: Born between 1980 and 1994
Generation X: Born between 1965 and 1979
Baby Boomers: Born between 1946 and 1964

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13.4
2.0
30.2
24.1
28.9
33.5
27.5
40.4
2025
2015
% of Gross Income by Generation
Generation Z Millennials Generation X Baby Boomers
Millennials will account for 30% of gross income
CONSUMERS IN 2025

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0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
450,000
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
US$
Average Household Disposable Income
Richest Households
Middle Class Households
Poorest Households
Income inequality will persist
CONSUMERS IN 2025

10. CONSUMERS IN 2025
SHOPPING PREFERENCES IN 2015
KEY TAKEAWAYS
Source: ThinkStock

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Consumer
Trends Survey
2015
LocationIncomeEthnicity
Household
Type
Age
Is today’s shopping behavior an indication of future behavior?
SHOPPING PREFERENCES IN 2015

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Shopping
experience
15 to 29
years old
Hispanics
African
Americans
Households
with kids
Who enjoys the shopping experience?
SHOPPING PREFERENCES IN 2015

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Garden
State Plaza
(NJ)
• BergenPAC
partnership
• Luxury
tenants
Westfarms
Mall
(CT)
• New app
• Exclusive
tenants
King of
Prussia
(PA)
• Better dining
options
• Indoor
skydiving
Shopping centers are evolving
SHOPPING PREFERENCES IN 2015
The New Mall

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74%
of Americans
say they like
to find bargains
Source: ThinkStock

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Brand 2010-15 %
Walmart Neighbourhood Market 236
Nordstrom Rack 111
HomeGoods 82
Ashley Furniture 70
rue 21 70
Dollar General 58
Forever 21 56
7 of the 20 fastest growing brands were value oriented
SHOPPING PREFERENCES IN 2015

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0 10 20 30 40 50
$11,001 to $21,500
$21,501 to $43,000
$43,001 to $65,000
$65,001 to $108,000
Over $108,000
US Average
% of Respondents
I Tend to Buy/Shop More at Stores where I am a
Loyalty Member
Loyalty programs are important to high income households
SHOPPING PREFERENCES IN 2015

17. #1US luxury retailer
40%Revenues come from
InCircle status members
11xLoyalty members spend
more than typical
shopper

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Much more
influential
• Social media
advertising
• Celebrity
endorsements
• Social media posts
Somewhat more
influential
• Video internet ads
• Onsite marketing
• Ads on mobile
phone
• Outdoor
• Geotargeted
mobile ads
• Text based ads
Typical
influence
• Family and friend
recommendations
• In-store
advertising
• Desktop ads
• TV commercials
• Radio
15 to 29 years old more influenced by emerging marketing platforms
SHOPPING PREFERENCES IN 2015

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459,000 followers on
Instagram
110,000 followers on
WANELO
102,000 followers on
Twitter
64,000 followers on
Facebook
8,000 followers on
Pinterest
On Tumbler and Snapchat
Shop Jeen knows social media
SHOPPING PREFERENCES IN 2015

20. CONSUMERS IN 2025
SHOPPING PREFERENCES IN 2015
KEY TAKEAWAYS
Source: ThinkStock

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The US consumer will be different in 2025
KEY TAKEAWAYS
New US
Consumer
Urban
Households
w/out
children
More diverse Older
Generations
with equal
spending
power
Unequal
income
distribution

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Shop in stores
Look for value
Maximize their loyalty
Embrace new technologies
What will future US shoppers do?
KEY TAKEAWAYS

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THANK YOU FOR LISTENINGTHANK YOU FOR LISTENING
Michelle Grant| Head of Retailing
Michelle.grant@euromonitor.com
@EMI_MichelleG
www.linkedin.com/in/migrant1