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How to Manage Inventory For Millennials

How to Manage Inventory For Millennials

Are grocery stores becoming a thing of the past?

 

A study done by the Wall Street Journal reveals that millennials are shopping at grocery stores less, and instead choosing convenience stores as their go-to destination for daily shopping, or even a quick bite.

The Choice of a Generation

Shoppers in their 20s and 30s are purchasing food from grocery stores less than their parents did and revolutionizing how food is purchased. As this trend is expected to continue, convenience stores must learn how to manage inventory to keep up with the growing demands of their customers.

 

According to CSPDailyNews.com, in 1985, there were half a million grocery and restaurant establishments in the United States. That number has grown to 1.4 million, with 81% of the new establishments being convenience stores.

 

Further, USA Today debunked the theory that millennials are choosing exclusively fast food restaurants as the main source for go-to meals. Instead, convenience stores are the destination of choice for this generation due to their relatively inexpensive offerings and, of course, convenience.

 

Other findings include:

  • As of 2014, convenience stores accounted for 11.1% of millennials food stops, as opposed to 7.7% in 2006. This indicates a growing trend.
  • The $204 billion convenience store business values millennials because they are called “impulse” buyers.
  • If you're an “impulse” buyer, this makes sense, since convenience stores have pre-made sandwiches, salads and usually hot foods that are ready immediately.

 

How to Manage Inventory for millennials

How to Manage Inventory and Give Them What They Want

Certain establishments such as 7-Eleven are even buying into this recent development by providing healthier options such as nutritionally balanced sandwiches and salads at certain locations. Other offerings have expanded to include fresh fruit and smoothies, while traditional fare such as hot dogs, pizzas, and wings are still popular.

 

Furthermore, millennials are increasingly turning to convenience stores for general grocery shopping. Prepared foods such as noodles and pastas are becoming more commonplace, while staples such as paper goods and condiments have a place also.

 

In order to capitalize on this growing customer base, convenience stores must try and figure out how to manage inventory and offer the products and foods that will generate the most revenue and keep those customers coming back for more.

 

When figuring out how to manage inventory, traditional methods of tracking don’t cut it in the modern era. New inventory management software gives cstore owners access to large sets of data that can be used in a variety of ways.

 

A complete inventory management solution can help:

 

  • Identify the most popular items, which can be used to adjust price (and profitability)
  • Identify poor performing items, which can be used to determine what simply isn’t working.
  • Determine trends in time, or even day of purchase, which can be used when planning out orders, promotions, or new offerings.

 

Any convenience store would be wise to take steps to tap into this growing customer base. Determining what products millennials expect to find as well as enjoy is key towards achieving that goal.

 

Interested in learning more about inventory management for your business? Check out our article about the advantages of an inventory management software.

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