Retailers shouldn’t overlook Generation X, as shoppers born between 1965 and 1980 generate the highest revenue per shopper across almost every product category, accounting for 31% of in-store and online spending, according to the International Council of Shopping Centers (ICSC).
Although they represent only 19% of the United States population, GenXers punch above their weight as spenders, according to an ICSC study examining $5 trillion in-store and online retail spending across five years and 426 retailers. Despite its relatively small size, Gen X outnumbers Baby Boomers, Millennials and GenZers in in-store revenue per shopper across nearly all key products and services categories, according to ICSC.
GenXers elevate entire markets, the organization asserted, with the study indicating that a concentration of Gen X residents in a certain area provides retailers with a powerful and measurable location-based advantage. Revenue per shopper among all generations gain in U.S. ZIP codes with a larger proportion of Gen X residents, ICSC pointed out, something that is particularly evident in metro areas such as Miami, Fort Lauderdale and West Palm Beach in Florida, and Houston, Pasadena and The Woodlands in Texas where they deliver overall higher revenue per shopper and stronger near-term return on investment versus other markets.
The future could make Gen X an even greater spending force, as one in three members of the demographic have or expect to receive an inheritance. ICSC projects 25% of the incoming wealth will go to retail purchases and experiences, totaling about $308 billion annually. GenXers have reason to spend as three in four are caregivers, supporting children and aging parents. As such, they sit at the center of household spending decisions across multiple generations.
That responsibility helps shape GenX behavior. ICSC maintained that three-quarters of Gen X participants in the study said caregiving has significantly affected their spending, with 53% having had to cut back on discretionary expenditures as a result. More than half of GenXers participating in the study expressed concerns about rising costs, retirement savings and healthcare.
Gen X has little tolerance for common, in-store pain points, including long checkout lines and lack of inventory, according to ICSC Although convenience may draw in GenXers, trust and experience keep them coming back. Gen X is a highly loyal cohort, ICSC noted. More than half of GenXers in the study reported that their brand loyalty has strengthened over the past five years.
Gen Xers are tech-fluent and pragmatic, adopting digital tools that enhance convenience, ICSC pointed out. For example, almost 80% use self-checkout kiosks regularly, and more than two-thirds use mobile apps and social platforms such as Facebook and TikTok to discover or purchase products.
“Common monikers for Gen X like the ‘sandwich generation’ and the ‘forgotten generation’ speak to Gen X as the overlooked middle between Baby Boomers and Millennials who often get more attention,” said Tom McGee, ICSC president and CEO. “But our new data tells a different story: They are the powerhouse driving today’s retail economy, spending more per shopper than all other generations. Gen X is pragmatic, loyal to brands they trust and influential decision-makers for themselves, their children and their parents. For retailers, there is no bigger near-term growth opportunity than winning the loyalty and the dollars of Gen X. GenXers’ extraordinary spending power and unique life circumstances make them a vital part of today’s retail landscape and a decisive force in shaping its future.”
