New York, NY, January 20, 2006--Retailers must quickly change the way they think about older consumers to better capture some of the $1.7 trillion people over 50 years of age spend on goods and services, consulting firm Deloitte & Touche USA said.
Americans older than 65 are the richest of any other age segment with multiple income sources such as pensions, social security and investments. But retailers have not done enough to reach these spenders, said Deloitte representative Pat Conroy in an address to the National Retail Foundation on Sunday.
"Stereotypes need to be discarded," Conroy said.
One-third of consumers in the range of 55- to 61-years-old prefer to shop online, Conroy said, citing results of a survey that Deloitte plans to release in coming days. And survey respondents said they own an average of 5.9 high-tech gadgets such as iPod music players or digital cameras.
Older Americans have become more active, as well. Those who fell into the 65-to-74 age bracket said they took an average of 2.5 vacations a year. About one-third of the respondents in this group said they like to buy the latest fashions.
To better serve this customer and reap profits, "marketing departments have to alter their campaigns and chief technology officers must consider the needs of this population, which is more tech-savvy than its predecessors." Conroy said.
To attract older consumers online, companies must streamline their Web sites and make links to other pages larger, said Conroy.
And so-called brick-and-mortar retailers must make their buildings and displays more accessible, he added, citing closer parking better lighting, a "reasonable" noise level and senior discounts as among the best incentives for older customers.
"Every industry is going to be affected (by the aging population," Conroy said. "This creates tremendous opportunities and tremendous challenges."
Ford Motor Co., Whirlpool Corp., and Home Depot Inc., are among companies that are successfully addressing older consumers' needs -- and will likely reap the benefits, said Conroy.
Automaker Ford has designed a suit for its test car drivers that simulates the challenges facing elderly drivers, including impaired vision and muscular stiffness, to help its engineers discover what improvements are needed to make cars better for older drivers.
Whirlpool has built a washer on a pedestal to aid loading and unloading for people with less mobility, while home supply retailer Home Depot has added in-store service desks that offer installation services for roofing, air conditioning and other improvement projects, Conroy noted.
"It's nice to see that people are analyzing what is required for us," said 61-year old Leopold Bacchi, an accounts manager at Montreal bank Desjardins, who was attending the conference.
