Walgreens, Staples Cater to Consumer Nielsen Identifies as Crucial

Prepare to listen to your elders more scrupulously as changing demographics have a more profound effect on retail.

The over-55 set already has become the scourge of American politics and AARP a powerful interest group, but less attention has been paid to the effect of older consumers on the economy. Free spending younger adults continue to be the focus of advertising and much of the consumer products industry, but Baby Boomer aging is going to have large effects and small on retail, particularly as the echelon born from 1946 to 1964 begins to retire in numbers.

Some sectors are going to take a hit as Boomers age, Nielsen Co. research suggests. Traditional sporting goods and toy retailers can expect shrinking business as Boomers slow down and households without children proliferate.

Doug Anderson, Nielsen senior vice president, global research and development, noted:

As our society grows older, American culture will move from being based on the interests and tastes of young people to being defined by the growing population of older people. Companies catering to older consumers and providing goods and services to make them comfortable — such as medication or vitamins — will be positioned to do well, while companies exclusively focused on the youth market are going to see their ability to grow limited by slow overall market growth.

Drug chain and other retailer programs that cut prescription drug costs are a reflection of changing demographics. Walgreens, for example, has developed and expanded a low-cost generic prescription drug initiative that today includes arthritis, high-blood pressure and other age-related medications prominently. Building off that, the drug chain now provides free diabetes testing supply shipping and, earlier this year, launched a health testing tour, sending nine specially equipped buses across the United States for a two-year tour of free screenings for cholesterol levels, blood pressure, bone density, glucose levels, waist circumference and body mass index, all things aging consumers need to consider for health maintenance.

Yet, drug chains and other pharmacy operators – including Wal-Mart, which operates its own drug discount programs – aren’t the only retailers that can and are anticipating the needs of older consumers.

Staples just announced that it had developed a line of co-branded office supplies, including hole punchers, scissors and, naturally, staplers, with ergonomic design leader OXO. The initial roll out of 20 items this month will be followed by more in July.

Ergonomically designed products are a particular benefit to folks suffering the afflictions of age, and if Walgreens can help relieve the difficulties associated with arthritis by providing low-cost drugs, Staples can do so by offering a hole puncher that’s more comfortable to use. The Staples effort may not be of the same dimension as Walgreens’, but it signals recognition that drug chains aren’t the only retailers faced with new demographic realities.