Just when you think you know a little something about the millennial generation, another piece of research drops like a bomb. Because of all the stores for them to prefer, Walmart isn't the one that naturally comes to mind.
But that's precisely the case as Walmart ranks as the preferred place to shop for millennials 24 and younger.
The group named Walmart over Target, Kroger, Whole Foods, Trader Joe's and Costco, thanks in part to its digital prowess, according to a new report by InfoScout.
"That kind of shocks a lot of people, including inside the company," Walmart CMO Stephen Quinn told AdAge. "As millennials become time-crunched with relationships and kids coming along, it's opening up a strong need for them to have a one-stop shop."
While the report didn't break down preferences by product category, the group of retailers being ranked are primarily grocers and mass merchants. If apparel were the subject, the results would likely be quite different.
No matter. Food and household staples comprise the bulk of consumer purchases, and winning the millennial customer is a priority for this group of retailers. It's particularly important to establish a relationship and create loyalty before they enter prime child-rearing years. Whole Foods' new 365 format is aimed at doing just that.
Millennials are defying a lot of stereotypes. They may be digitally savvy, but they don't shop exclusively online or on a mobile device. There are barriers to digital shopping including a lack of access to, or a reluctance to use, credit. Small budgets mean smaller baskets that don't qualify for free shipping from many retailers. Overwhelmingly, these shoppers still prefer stores.
Walmart is growing its online operations and sales, but it is also using the medium to track young shopper's interests. The retailer has gone so far as to uncover new brands and products, then add them to their inventory.
And while many researchers like to say that millennials are cause-motivated consumers, which would seem to rule out Walmart as a destination choice, but young people in general are interested in causes. Anyone who has ever visited a college campus knows the environment is filled with earnest young adults eager to change the world.
But they are also eager to make a living and they have debts to pay, big ones. Even the most idealistic among them are looking forward to finding a mate and raising a family. And like most young people, they are on a tight budget.
"As millennials become time-crunched with relationships and kids coming along, it's opening up a strong need for them to have a one-stop shop," Quinn said.
Walmart has also spent the past decade burnishing its image. It has gone from promoting only its everyday low price value equation to campaigns that showcase employees, a commitment to U.S. made products and recently announced it would make some employee-centric changes including raising hourly wages.
Millennials may be confounding researchers and retailers, and naming Walmart their top choice among shopping destinations certainly qualifies, but they also are a product of their environment. They were raised by Baby Boomers, the very group that made Walmart the largest retailer in the world.
