Retailers must try hard to attract silver-haired shoppers whose spending power will hit £64 billion by 2017, research out today says.
That figure compares to the over 65s’ current annual retail spend of £39 billion in the UK, according to market analysts Verdict Consulting.
Shoppers aged 65 to 74 will have the biggest spending surge of any age group over the next decade, Verdict’s report says.
This is due to a predicted 28% increase in the number of people in that age group who will be living in the UK by 2017.
Older consumers will have developed a younger outlook and more youthful shopping habits by 2017 than those of retired shoppers today, Verdict predicts.
Silver shoppers will spend £64 billion a year
Neil Saunders, director at Verdict Consulting, said: ‘Historically it was the younger consumer that drove retail growth. That won’t be the case going forward as over the next ten years the over-45s will prove to be the engine of retail activity.’
Spending will increase
Verdict predicts consumer spending will increase in all age groups over the next decade except amongst the zero to 14-year-olds, whose buying power will drop a predicted 10.3%.
The 25 to 34 age group will have the slowest spending growth over the next decade at 13.7%.
This compares to a predicted 38.3% surge in spending amongst 65- to 74-year-olds.
The highest spenders in 2017 will still be the 35 to 44 age group, who will splash out a predicted £8,891 per head annually – a 30.6% increase on today.
Mature shoppers are expected spend more on personal care, fashion and technology in 2017 than people in that age group do today.
Retailers need to work hard to pull in older shoppers over the next 10 years, Verdict says.
Its research found the Edinburgh Woollen Mill currently had the largest percentage of customers over the age of 65.
This was followed by Bonmarche in second place and JD Williams in third place.
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