Retail companies are beginning to struggle in a variety of different aspects due to millennials’ increasing level of willingness to frequent stores that are more capable of catering to their unique set of needs. However, these types of shifts do not take place overnight, nor can they be attributed to only one factor. Let’s take a closer look at a few of the reasons why millennials are electing to spend their hard earned money elsewhere.

The Convenience of Online Shopping 

Millennials are not tethered to the same brick and mortar institutions as their older counterparts and there are a number of online grocery shopping options that make life easier. For example, a millennial can use Amazon’s grocery shopping services to have food delivered directly to their home or they can rely on the assistance of Wal-Mart’s curbside pickup services.

Student Loan Debt

Now that almost every student is forced to take on a significant amount of loan debt upon finishing their secondary education, more and more millennials are turning to discount shopping outlets to meet their grocery shopping needs. Increased cost consciousness when it comes to grocery shopping is leading younger consumers to choose outlets like the Dollar General and Dollar Tree, where they are able to get far more bang for their shopping buck than they would at typical grocery shopping outlets.

Lack of Coupon Usage

In an era where the use of coupons is considered to be a fine art and there are popular television shows dedicated to the practice, it is somewhat surprising to learn that millennials are not particularly motivated to utilize coupons for their grocery shopping needs. While the usage of coupons has declined for all age groups over the past twelve months, millennial coupon usage has declined at a rate that far outstrips their older counterparts, trailing older generations by a whopping five percentage points.

Increased Presence of Smartphones

Millennials are far more apt to use their smartphones when it comes time to purchase food and there are a wide range of apps that allow them to do so. As more companies continue to create apps that are designed to provide millennials with inexpensive dining options and healthy alternatives that can be delivered directly to their front door, there is less of an impetus placed on shopping in a traditional manner.

Lack of Targeted Initiatives

Now that millennials are less likely to procure coupons from the Sunday newspaper, grocery stores are finding out more about their ability to regain a younger audience with the use of helpful initiatives that specifically target their needs. While companies are currently struggling to utilize the data that they have at their disposal to create loyalty programs, those who adapt accordingly may be able to stem the tide.