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Mara West

Millennials vs. retail: the changing consumer customs of Generation Y

Updated: Dec 14, 2018

Like every other generation in 2018, millennials have a reputation to uphold. The Google search bar alone is full of traits we now directly associate with the bunch of twenty-somethings ruling the headlines. Within seconds, hundreds of results pop onto our screens: "Millennials are…‘technologically-savvy’, ‘entrepreneurial’, ‘rude’." But the most intriguing search? ‘Millennials are killing…’ and the list is endless. Canned tuna, golf, cinemas, it seems anything and everything is in the firing line when it comes to industries hit by the avocado-loving, facial-hair growing generation. But what initially looks like a light-hearted bunch of Buzzfeed-esque articles hides a more worrying truth.


What’s the problem?

It’s no secret that our high street shops have long been under threat; 2018 alone has seen House of Fraser, New Look and Toys ‘R' Us struggle to keep their doors open, either shutting down a number of stores or being forced to close their doors to the public entirely. Seemingly by the day, businesses are being pushed out to make way for online and digital shopping. The UK’s high streets suffered 5,855 store closures in 2017, and 2018’s figures are looking just as bleak. The conflict between traditional and online retail isn’t a new one, but are millennials making it worse?


Where do they shop?

In a time where millennials now make 54% of their purchases online, it seems obvious that the generation are partly to blame for the fall of the high street, but when faced with the ease of online shopping compared with traditional shopping, can they really be blamed? According to the Local Data Company, fashion and footwear high street stores were the hardest hit in 2017, as a direct result of online shopping becoming more evolved.

With free next-day delivery directly to your house offered by big brands such as ASOS and Missguided, it makes heading out of the house and driving/cycling/walking into town totally unnecessary. Pair that with a huge array of discounts only offered exclusively online and it’s no wonder why millennials choose to shop on the internet; they’re saving money, time and effort all in one. That much is obvious, but where does the real conflict stand? Do this generation feel responsible for the decline of the high street?


Where’s the conflict?

In a survey carried out by The Conflict Project, 100% of participants said they were aware of high street store closures, but only 34% said they felt ‘guilty' for it.


One participant quoted; “This is just the way the world works in 2018, why take the hassle of shopping on the high street when you can do just as good of a job online? I do feel responsible to the fall of the high street, but I definitely don’t feel bad for it.”


Another participant, who claimed that they did ‘feel guilty’, highlighted an internal argument they struggle with every time it comes to shopping. “My mum runs an independent clothes boutique and has always stressed to me the importance of shopping locally and supporting your local high street, but it’s so difficult. I buy things online for convenience and ease, but I do feel bad every time I see a new headline saying a company is being forced to close. It’s really just a conflict of choices, and I don’t think young people really fully understand the importance of shopping locally.”


What about brands adapting?

Marks and Spencer is just one retailer changing their strategy to suit the digital market. A half-year press release highlighted the need for ‘Initial steps to drive digital catch up and change in culture’ as 20.4% of UK M&S sales are now made online. Difficulties in the search and payment features had made the website tricky to navigate in the past, but for Marks and Spencer, 2019 will be dedicated to improving their online trade as a result of current online clothing sales growth.

"M&S is becoming a faster, more commercial and more digital business."

- 2018 Half Year Press Release


Similarly, clothing brand Uniqlo have redefined the selling of fashion basics by putting popular pieces at affordable prices into a store over five unique (excuse the pun) floors. There’s interactive mirrors, roof top events and collaborations with museums and music artists - and the individual technique pays off, they now own stores in seven European countries.



What about struggling brands?

But not all businesses can adapt to suit the modern-day retail market. Caroline Neale of Budget Wools, Cheltenham, is just one independent trader struggling to cope with competition from online markets, proving the conflict for smaller businesses is very much still present. Having worked in the shop for forty of the fifty-four years it’s been open, she’s experienced the impact of the internet first hand.

“Millennials and their smartphones and tablets are definitely partly to blame, we have really struggled against the online market throughout the years.”

But Caroline remains optimistic that the future of the high street depends on what the trader can offer the modern-day customer;

“Unless retailers have got something to give that's a bit different to what customers can get online, I can't see them succeeding for long. We have rates to pay, rent, bills, and if they can't offer something unique or interactive or personal, they will struggle. There's got to be a bit of something extra.”



So what does the future hold?

Experience shops, digital shopping and even fashion available to rent - the future of the high street is set to be easy and convenient for shoppers, but even more of a struggle for traditional retailers. This month has seen The Drop open, a pop-up shop in London that rents out designer clothing, rather than selling it. Though only recently started, the support from millennials favouring the sustainable fashion vision is indicating that we might be looking at the future of retail. Of our survey participants, 76% of millennials said they thought they idea of renting out garments rather than buying them was a good idea, and 68% said they would like to try it.



So, what are millennials killing, really? Industries change no matter the year, market, or user, and the conflict between traditional and online retail is really just a matter of business evolving. Though portrayed negatively on an almost daily basis in headlines, The Conflict Project's survey showed millennials think they need to be taken out of the firing line and spared the blame for the ‘death’ of industries. And judging by the current market, retailers need to look to the future to offer a unique service or experience. It is possible, as Caroline from Budget Wools summarises, “We don’t just sell wool, we make our customers smile. That’s why we succeed.”


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