Who will lead economic recovery effort? Maybe your grandkids

YAKIMA, Wash. -- Your children (or grandchildren) may be the ones to lead in a recovery of consumer spending, according to a report released today from PricewaterhouseCoopers and Kantar Retail.

The report, called “The New Consumer Behavior Paradigm: Permanent or Fleeting?” states that shoppers will continue to be more conscious and selective in their spending and will continue to seek coupons and price comparison Web sites. Retailers will need to adjust strategies to these likely permanent habits.

But the desire for instant gratification and new technology (as they see such products as a need not a want) places members of Generation Y (those between the ages of 10 and 28) in position to lead recovery. But given that this generation did not dramatically change their spending habits during the recession, there will be less of a rebound.

Those in Generation X (ages of 29 to 45) may also be key in resuming spending as they are entering their peak spending years to build their households. That generation, however, is dealing with debt and static movement in the workplace with Baby Boomers staying in the workforce longer.

To read the full report, click here. http://www.retailforward.com/download/NewConsumerBehaviorParadigm.pdf

-- Mai Hoang

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