Grandparent behavior--a retail opportunity

"Retailers target grandparent buyers" By Sue Stock / Raleigh News & Observer

The nation's 77.6 million baby boomers are heading into their grandparenting years and retailers are primed. The industry that already has given us Baby Gap, Pottery Barn Kids, Cargo Kids and Talbots Kids, plus independent local stores focusing on everything from baby's clothes to his or her toys, has even more to sell. Expect an explosion of stores and ads geared toward Grandma and Grandpa's wallets.

The spending potential is huge. In 2002, baby boomers' after-tax income was $2.5 trillion, and it's estimated that grandparents spent $23 billion on their grandchildren that year. By 2007, baby boomers' post-tax income is estimated to reach $2.6 trillion. "I guess you have a soft spot and get very emotional over the little rascals," said Terry Rudd, who says he and his wife, Mary Jane, spoil their five grandchildren, who range in age from 20 months to 4 years. They also have a sixth grandchild due in November.



"We're at a stage in our life when we can afford to do that," said Rudd, who is a retired IBM employee and the founder of the Rudino's pizza and grinders chain. "With grandkids, it's more relaxed (than when raising your own children). You just want to have fun with them."