According to a new report from PricewaterhouseCoopers and Retail Forward, entitled The New Consumer Behavior Paradigm: Permanent or Fleeting?, for the first time in the last three recessions, it will not be Baby Boomers at the heart of the economic recovery, as the recession has taken a bite of their savings and retirement accounts. This time it is the Gen Xers and Millennials who will be driving the recovery.
A higher proportion of Gen Y's income is discretionary as a result of fewer debts and a less-urgent need to accumulate wealth in the immediate term relative to older shoppers. Furthermore, as this generation is accustomed to instant gratification and demands the latest gadgets, spending on technology staples like MP3 players and smart phones will remain a priority and create unique opportunities for tech-oriented retailers.
See original research brief here:
GenX and Millennials Driving Recovery by Jack Loechner
For a complete report from PriceWaterhouseCoopers, please visit them here