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The retail generation gap is killing premium brands

September 6, 2011 by Bob Phibbs — CEO, The Retail Doctor

As the keynote speaker last month at the Retail Customer Executive Summit, I focused on the humanity needed in retail. That's because, just like at the NRF convention last January, we heard a lot about technology and how to really "connect" to customers – via technology...

But what that reliance on technology is doing to one of the most creative generations, one that celebrates diversity and individualism, is strict adherence to manufactured corporate teamwork.

I think that's pretty short-sighted.

At a time when my Boomer generation – the largest – is becoming older, we are the ones most desiring a personal shopping experience. Yet what we often find is one rooted in a depersonalized and technological customer experience.

One where an employee's tablet or smartphone pulls up all the back-end information about a customer. And while the employee may truly be able to help the person with all that information, what the Boomer frequently sees is "some kid texting" – not taking them seriously.

Which gets Boomers p. o'd. Big time. And my generation will tell you - and all their friends - of any slight of our egos because...well...we're not only the largest but also the most vocal. Our parents, the Silent Generation would put up with it – not us.

This is only a symptom of something far greater...

The generation gap growing across the retail landscape is causing several premium brands to be stuck in neutral but not for the reasons you'd think.

The Silent Generation (1925-1945)

My parents were from the silent generation who grew up in the Great Depression, when there was no work. No hope. No future. Their parents were constantly worried about money, so they made sure to get the most out of their purchases like socks, jeans or food; they found most things could be recycled a number of times to get the most out of them.

That generation pretty much created retail as we know it. As they aged, they were the ones who were working their way up from the Chevy to the Pontiac, from Woolworths to Sears. Where what was a "best" brand actually meant something.

Boomers (1946-1964)

Boomers have been on an upwardly mobile race against the Joneses since we were born. We were the generation who struck out on our own at 18, or got the education, or played the corporate game, or started our own business – we strove to do better than our parents. That meant mainly owning more and better stuff than our parents.

Shallow or not, right or wrong, we're the generation who lived out the housing/retail/Wall St./mortgage bubble on the backs of our homes. My generation grew up to believe Excedrin would cure a headache faster than any other, that Green Giant frozen vegetables were better than fresh, in short, that you got what you paid for.

Since we were the ones who got the hand-me-downs from parents raised with nothing, rent-to-own wasn't in our vocabulary. Yet with Zipcar, Netflix, renttherunway, bagborroworsteal and the rest – this is the world of the Millenial. And that's a symptom of the big problem for retailers.

My full special report goes into detail about these and the other generations, what the true problem is and what needs to be done. You can download it without cost here.

About Bob Phibbs

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