Millennials – Who Are They? If you are like most retailers, you invest a lot of time and money in building a loyal customer base, and as part of that effort you are trying to understand and target the up and coming Millennial generation. Millennials are typically defined as those born between 1980 and 2000, although some studies make them a bit older or younger. This means they range in age from teenagers to early 30-somethings. This group is subject of many studies and are on pace to be the most studied demographic in history, behind the Boomers who have been studied for decades. Everyone is trying to figure them out. Why? According to a 2012 study this group already represents $200 billion of direct purchasing power and has influence over $500 billion of indirect spending, primarily because teens and young adults who are living at home influence the purchasing habits of their Baby Boomer parents (source: U.S. Chamber of Commerce Foundation). Since the youngest members of the group are yet to enter the workforce, the prime earning timeframe for this group is still years away, which means collectively the group represents an important part of our future economy and cannot be ignored. Millennials’ annual spending is expected to reach $2.45 trillion by 2015 (source: Deloitte). Clearly understanding and finding ways to appeal to this important demographic deserves a closer look.
As the fuel market becomes increasingly competitive and volatile, businesses are looking for ways to expand their profits and streamline processes. This can mean moving beyond their initial arena of operations and into fields that bring their own logistical, managerial and administrative challenges and opportunities. This can be particularly true for upstream fuel businesses looking to move 'below the rack' downstream.