Kaiser caters to seniors

Germany’s Kaiser supermarkets (owned by Tengelmann group)  have started made renovations to a pilot store in Berlin, adapting them for the ease and comfort of the elderly.

Some changes include magnifying lenses mounted on shelves as well as shopping carts, making it easier for seniors to read product labels. Aisles have been widened, with brighter lighting; shelf labels have been enlarged and smaller portion packaging now dominates the shelves. This is to accommodate the smaller household size of one or two persons, generally occupied by seniors. Shipping wagons have been equipped with seats, but there are also general rest areas, and emergency call button located through the supermarket.

Although this might seem an altruistic gesture, Tobias Tuchlenski, Kaiser’s Regional Manager, explains that is an important business calculation. Since the renovations, revenues have increased by 30%. People over 50 make up the largest supermarket spending demographic.

The median age across the Europe will shift from 37.7 to 52.3 by 2050 as a result of increasing life expectancy and lower birth rates. Currently, the over-50s make up one-third of the European Union’s population, but in the next 20 years the number of people aged 50 to 64 will rise by one-quarter, while the number of 20 to 29-year-olds will fall by one-fifth. By 2015 a quarter of Austrians and a third of Germans will be over 60. It is clear that the elderly are an increasingly important market segment.

The Kaiser pilot is following in the footsteps of the Austrian retailer Adeg, part of the German Edeka Group, which opened its first Adeg Activ Markt +50 store near Salzburg in 2003. Features included non-glare lighting, non-slip flooring and more “mid-range” shelf heights. After a year, sales in the new-look store were up 5% above the ordinary store format and the company has been rolling out the Adeg Active format steadily since then.

The point is clear: retailers and other businesses will need to innovate if they are to compete for the “grey” money.

Related link:
Video coverage of Kaiser’s renovations