segmenting Millennials

I got an e-“book” from NPD, the retail data and analysis people, the other day that argues we as investors shouldn’t look at Millennials as a coherent group, but rather segment them by age ( I wrote “book” because it’s ten pages long).  Here’s what it says:

general

Millennials are an important demographic group in one sense because they’re the largest segment in the US by age, having recently passed the Baby Boom in size.  More important, they’re in the ascendant economically, while Boomers are gradually fading into retirement, with attendant lower incomes and weakening propensity to spend.  In addition, 13.8% of those 18 -29 are either unemployed or out of the workforce.  This suggests that this group will show better than average income–and spending–growth as Boomer retirement and economic expansion make more jobs available.

Millennials are projected to account for a third of total US retail spending within the next five years.

segmenting

NPD divides Millennials into younger (18 – 24) and older (25 -34).

Older Millennials:

74% white

40% married (44% have been married at least once)

40% have children

have more money

are less optimistic

favor Donald Trump.

 

Younger Millennials:

68% white

10% married (20% have been at least once)

10% have children

have less money (many are still in school)

are more optimistic

favor Bernie Sanders

 

Differing retail habits on Friday.

 

 

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