Grandparent Buying Power
September 27, 2018 — The NPD Group reported that grandparents account for nearly $7 billion, or about one-quarter of the $28 billion U.S. toy industry. In the last 12 months grandparents’ spending growth exceeded nearly all other consumer segments.
“The market for grandparents is often overlooked, but holds tremendous opportunity. I expect this segment will continue to grow as Baby Boomers’ children, who are mostly Millennials, enter parenthood,” said Juli Lennett, senior vice president and industry advisor, Toys, The NPD Group.
85 percent of grandparents shopped in a physical store for toys in the last year, while 72 percent shopped online. The online channel is growing faster for grandparents compared to the rest of the market, too. One-third of grandparents’ toy sales went toward kids ages 2-4, particularly infant/toddler/preschool toys and outdoor and sports toys.
Retailers and manufacturers seeking to reach more grandparents will need solid bricks & mortar and online strategies!