Optimising retail environments for older adults: Insights into customer behaviour and organisational performance

König, Ljerka Sedlan Article Optimising retail environments for older adults: Insights into customer behaviour and organisational performance Administrative Sciences Provided in Cooperation with: MDPI – Multidisciplinary Digital Publishing Institute, Basel Suggested Citation: König, Ljerka Sedlan (2025) : Optimising retail environments for older adults: Insights into customer behaviour and organisational performance, Administrative Sciences, ISSN 2076-3387, MDPI, Basel, Vol. 15, Iss. 4, pp. 1-16, https://doi.org/10.3390/admsci15040120 This Version is available at: https://hdl.handle.net/10419/321264 Standard-Nutzungsbedingungen: Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen. Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in EconStor may be saved and copied for your personal and scholarly purposes. You are not to copy documents for public or commercial purposes, to exhibit the documents publicly, to make them publicly available on the internet, or to distribute or otherwise use the documents in public. If the documents have been made available under an Open Content Licence (especially Creative Commons Licences), you may exercise further usage rights as specified in the indicated licence. https://creativecommons.org/licenses/by/4.0/ Received: 15 January 2025 Revised: 11 March 2025 Accepted: 13 March 2025 Published: 24 March 2025 Citation: König, L. S. (2025). Optimising Retail Environments for Older Adults: Insights into Customer Behaviour and Organisational Performance. Administrative Sciences, 15(4), 120. https://doi.org/10.3390/ admsci15040120 Copyright: © 2025 by the author. Licensee MDPI, Basel, Switzerland. This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license (https://creativecommons.org/ licenses/by/4.0/). Article Optimising Retail Environments for Older Adults: Insights into Customer Behaviour and Organisational Performance Ljerka Sedlan König School of Economics and Business, Josip Juraj Strossmayer University of Osijek, Gajev trg 7, 31000 Osijek, Croatia; [email protected] Abstract: Retailers have traditionally prioritised younger customers, often overlooking the distinct needs of older consumers. As this demographic grows, it is increasingly important to cater to their shopping preferences. This study explores the behaviours, needs, and challenges of Croatian consumers aged 60+ through qualitative semi-structured interviews. Findings indicate that older urban customers in Croatia prioritise quality over price, are brand-loyal yet discerning, and balance price consciousness for necessities with the willingness to spend on desired items. The study contributes to consumer behaviour theory by highlighting older consumers’ selective brand loyalty and self-directed decision making. It expands on ageing population theories by challenging assumptions that older consumers are passive shoppers, emphasising their preference for informed, self-directed purchasing. From a retail strategy perspective, it emphasises experience-based retailing, advocating for enhanced customer service, clear store navigation, and tailored marketing. Practically, our research provides actionable insights for retailers to optimise service, enhance operational efficiency, and improve profitability. Adapting retail environments to better serve older customers can foster a more engaging and rewarding shopping experience, benefiting both consumers and businesses. Keywords: customer behaviour; needs; habits; grocery retailers; older population; organisational performance 1. Introduction The world’s population is ageing faster than ever before, and Europe has the largest ageing population in the world. According to Statista’s data for 2021 (Statista,2021), Europe leads the way with 19% of the older population, followed by North America with 17%. In 2020, it was projected that there would be more people aged 60 and over than children under 5, and the World Health Organisation (WHO,2022) estimated that the proportion of the world’s population aged 60 and over will almost double between 2015 and 2050. Croatia is no exception, and every fourth Croatian is older than 60 (Croatian Bureau of Statistics,2020). The segment of older customers is growing in size and purchasing power, but it has not received enough attention, and there is little information about their grocery shopping habits. Observing specific customer segments helps retailers understand what, how, and why they buy (Geuens et al.,2003) and what differences are important. The existing literature on consumer behaviour has predominantly focused on younger demographics, emphasising digital engagement, fast-changing preferences, and brand switching tendencies. While some studies have explored older consumers, they largely focus on Western markets, with limited research addressing their shopping behaviours in Central and Eastern Adm. Sci. 2025,15, 120 https://doi.org/10.3390/admsci15040120 Adm. Sci. 2025,15, 120 2 of 16 Europe, including Croatia. The grocery retail sector has particularly lacked region-specific insights into how urban older consumers make purchasing decisions, navigate store environments, and interact with marketing strategies. Additionally, previous research has failed to acknowledge the specific socio-cultural and economic factors influencing older urban consumers in Croatia, such as their high brand loyalty, value orientation, and preference for self-informed shopping. As a result, retailers often misinterpret their expectations and fail to provide tailored experiences. This study aims to bridge this gap by offering a context-specific examination of the shopping habits, preferences, and challenges faced by older urban consumers in Croatia, and it addresses the following research question: How can retailers change store design, their marketing strategies and pricing models to better meet the shopping behaviours, preferences, and needs of older urban customers and enhance operational efficiency and profitability? The theoretical framework directly informs the research objectives by providing a structured lens through which to examine the unique shopping behaviours of older consumers. By linking consumer behaviour models with real-world purchasing patterns, this study aims to generate actionable insights that retailers can use to optimise their business strategies. Furthermore, this study tests and refines existing theories by applying them to a new regional and demographic context (older urban consumers in Croatia), providing empirical validation and contributing to a more comprehensive understanding of ageing consumer behaviour. The study collected data from 89 semi-structured interviews with older customers to investigate their perceived grocery shopping needs and preferences. Thematic analysis was used to interpret the results. Understanding the differences between customers of different ages is crucial for companies to adapt their marketing strategies, increase customer satisfaction, and improve the shopping experience. The findings of this study can inform grocery retailers on what kind of customer experience they need to provide to remain relevant to the 60+ customer segment. The paper is structured as follows: The first section provides an overview of the previous literature on this topic. Then, the results of the qualitative study on the lifestyle and shopping behaviour of older customers are presented and discussed. Conclusions and suggestions for further research can be found at the end of the paper. 2. Theoretical Framework The existing literature on consumer behaviour, particularly in relation to older consumers, contains mixed findings about their shopping habits, decision-making processes, and attitudes towards retail. While some studies portray older consumers as passive, price-sensitive, and less influenced by digital developments, more recent studies point to more complex and self-determined shopping behaviours. According to Solomon et al. (2019, p. 9), the study of customer behaviour involves “the processes involved when individuals or groups select, purchase, use, or dispose of products, services, ideas, and experiences in order to satisfy needs and desires”. Grocery shopping is a routine activity involving all customers, regardless of age, and it has been described as one of the fundamental elements of customer behaviour. To remain profitable, stores need to attract and retain customers, and their opinion and experience are of paramount importance. Customers’ needs and wants must be met if they are to have a satisfying shopping experience. This study contributes to consumer behaviour theory (Solomon et al.,2019) by highlighting how older consumers prioritise product quality and brand loyalty while remaining price-sensitive for necessities. Unlike younger demographics, older consumers rely less Adm. Sci. 2025,15, 120 3 of 16 on peer influence and digital marketing, instead favouring traditional marketing channels such as printed brochures and in-store experiences. Regarding ageing population theories (Baltes & Smith,2003), this research underscores the evolving autonomy of older consumers, challenging assumptions that they are passive shoppers. The findings align with Moschis’ framework for consumer decision making in an ageing population, emphasising the cognitive effort in purchasing decisions and preference for familiar brands (Moschis,2003). Additionally, the results add nuance to the socioemotional selectivity theory (Carstensen et al.,2003), which suggests that older consumers prioritise emotionally fulfilling experiences, is reflected in their preference for engaging in social shopping and in-store interactions. From a retail strategy perspective, this research expands on Backstrom and Johansson’s (2006) findings by demonstrating that retailers often misinterpret older consumers’ expectations. While retailers may assume that convenience and senior-focused zones appeal to older shoppers, this study reveals that they resist being categorised by age and instead seek inclusive, mainstream retail experiences. Retailers must therefore shift toward experiencebased retailing, focusing on enhanced customer service, clear in-store navigation, and trust-building strategies to cater to this growing demographic. Eriksson and Stenius (2024) pointed out that to be successful, retailers must recognise and respond to the needs of target age groups. As competition between grocery retailers has intensified, in-store footfall has become increasingly important. All customer groups are valuable to retailers, and the older customer segment should be no exception. Nevertheless, retailers are focusing on the needs of younger, affluent, and mobile customers, while others, such as older customers, are being disadvantaged (Chu et al.,2010). The economic growth that the older customer segment can stimulate does not necessarily result from the affluence of this segment, but from its sheer size. Indeed, in developed countries, the older urban population is the only age group that is growing (Van Hoof et al.,2018). As digital technologies continue to redefine the retail shopping experience, older consumers are increasingly adapting to new shopping methods, albeit slowly and at different paces (Zheng et al.,2024). Understanding these trends is critical for companies looking to effectively target this demographic. Older consumers have historically relied on cash and traditional banking methods, but digital payment systems such as contactless cards and online banking are gaining traction (Chen et al.,2024). Nevertheless, challenges remain. Pantano et al. (2022) highlight that older consumers face barriers such as concerns about fraud, difficulty remembering passwords, difficulty with website navigation, and a lack of trust in digital interfaces. Therefore, companies that offer intuitive digital payment systems, optimise e-commerce experiences, and integrate AI tools while addressing usability concerns are more likely to attract and retain older customers. It is widely recognised that the behaviour of older customers differs from that of other generations, as customers’ needs, desires, and abilities change as they grow older, affecting their lifestyle, perceptions, and therefore, their (grocery) purchasing behaviour. Previous studies have identified the following differences: shopping as a social event and as a form of exercise, shopping at less busy times (in the morning or on quieter days of the week), preference for one-stop shopping, seeking personal attention and special services, greater store loyalty, preference for quality, increased demand for facts, lower price sensitivity, more joint purchasing decisions, reliance on local stores, greater emphasis on the sensory aspect of shopping, faster response to emotional stimuli, lower expectations and avoidance of complaints (Pettigrew et al.,2005;Cottet et al.,2006;Patterson,2007;Cox et al.,2005; Meneely et al.,2009b;Meiners & Seeberger,2010;Lambert-Pandraud & Laurent,2010; Hettich et al.,2018). Therefore, the older customer segment deserves serious attention and differentiated service. Older customers are given limited consideration by retailers who Adm. Sci. 2025,15, 120 4 of 16 consequently fail to meet the needs of older customers, even though it is in their best interest to change this and improve the customers’ shopping experience (Meneely et al.,2008). Retailers should be more responsive to the needs of older customers and take advantage of the new opportunities they offer (Shiu et al.,2004). Furthermore, Backstrom and Johansson (2006) found a significant difference between retailers’ and customers’ opinions on what constitutes a pleasant in-store shopping experience, suggesting that retailers do not know exactly what their customers want or how to meet their needs. Therefore, research is needed into the needs and preferences of older customers in particular. In Croatia, the grocery shopping behaviour of older customers has not received much attention and has yet to be fully documented. Retailers can enhance their organisational performance by becoming more efficient, customer-focused, and profitable, thereby strengthening their competitive position in the market (Shakoor et al.,2017). By adopting a customer-centric strategy—including tailored marketing, personalised service, optimised store layouts, improved accessibility, and appropriate technology integration—retailers can build long-term customer loyalty and differentiate themselves from the competition. This differentiation can be a key factor for gaining a competitive edge in a crowded market. Retailers that innovate in these areas not only set industry trends but also solidify their competitive position. As the global population ages, those who proactively address the needs of older customers are better positioned for long-term success, ensuring sustained growth and resilience in an evolving market. 3. Methodology As the focus of this exploratory and descriptive research was on the subjective human experience and the researcher was looking for detailed information, interested in hearing a variety of stories, the semi-structured individual face-to-face interview method was used for data collection. The interview method was also chosen because it allowed a rapport to be built with the participants, and attention could also be paid to the non-verbal behaviour of the participants during the interview. This was considered important for the older participants. The interviews were conducted between 4 March 2024 and 15 June 2024 in Osijek, Croatia. For the list of interview questions, please refer to Appendix A. The majority of participants were interviewed at the Faculty of Economics and Business, while approximately one-third of the sample was interviewed at the premises of an association for older adults. A small number of interviews were conducted in participants’ homes. Each interview lasted between 20 and 30 min. Data collection was carried out by a team of five adults. Each of the 89 participants was asked the same questions in the same way. The topics selected were based on the literature review and previous research. Both pre-coded and open-ended responses were used. The pre-coded responses ensured the compatibility of the entire sample and were subjected to statistical analysis. In order to gather as much detailed information as possible, probing questions were frequently asked, i.e., follow-up questions after the interviewee had given their first answer. At the end of the interview, there was still time for spontaneous discussions. Given the extensive sample size (89 interviews), this study prioritised the synthesis of recurring themes over individual quotes to maintain conciseness and readability. The analysis emphasises patterns observed across multiple responses, ensuring the findings reflect broad trends rather than isolated opinions. While direct quotations can provide illustrative examples, the decision to focus on thematic prevalence ensures a more comprehensive representation of the data. Adm. Sci. 2025,15, 120 5 of 16 Although the decision regarding who should participate in the study (citizens over 60, men and women) was made before the study began, the decision on who should be interviewed and how participants should be found was made during the study. To recruit participants, the researcher used informal networks known to her, and the snowball technique (being aware of the potential bias), i.e., interviewees were asked to provide names of other potential interviewees. The researcher applied theoretical sampling and stopped looking for new participants when the subsequent data did not add anything new to the researcher’s understanding of the problem, which is referred to as theoretical saturation (Fox,2009). This was assessed through continuous comparative analysis during the coding process. To ensure the reliability of the thematic analysis, inter-coder reliability was established by having an assistant researcher independently code a subset of the data, followed by discussions to resolve discrepancies and reach consensus on emergent themes. At the same time, the researcher ensured that participants represented different categories and therefore the widest possible range of perspectives, even if they represented extreme views and did not represent the average. All participants were assured of anonymity and confidentiality. Thematic analysis was used for the qualitative data analysis. First, key concepts were identified, and then, the researcher attempted to categorise and develop these into common themes. 4. Results and Discussion 4.1. Lifestyle of Older Urban Customers A total of 65 women and 24 men took part in this study. Their average age was 62, but, on average, they feel 18 years younger. Most of them are retired and 15% work part-time. Although they focus on their own consumption, they see their role as supporting younger family members and 33% help their children financially. Only 20% save money. This is in contrast to a previous study (Gilmartin,2023) stating that older people are less self-oriented and more altruistic than younger generations. Both men and women in this sample enjoy shopping. This supports the findings of Meneely et al. (2009a) and Dennis et al. (2010) that shopping provides pleasure and entertainment for older customers, in addition to its functional role. Most of them estimate that they are active for 7 h or more a day. The majority own a smartphone and more than half of them drive a car (91% of men in the sample). This gives them mobility and a sense of independence, helps them overcome physical access difficulties, and makes it easier for older customers to decide freely where to shop. It is therefore not surprising that proximity to the store is not a priority for them. They usually live with a partner or alone. The opinion of other people is usually less important and has little influence on their decisions. The fact that older urban customers are less exposed to peer influence than other generations could be important information for retailers, as they should not assume that older customers are helpless, and that other people make the purchasing decisions for older customers. Instead, retailers should be aware that older customers are happy to make their own decisions, and they should therefore create informative content for them, such as blogs, videos, and brochures that empower older urban customers with knowledge and confidence to make purchasing decisions. By recognising and respecting the independence of older customers, retailers can develop strategies that emphasise individual choice, provide comprehensive information, and offer personalised service. These approaches not only address the decision-making preferences of older customers, but they also build trust and loyalty, ultimately leading to long-term customer satisfaction and business success. Adm. Sci. 2025,15, 120 6 of 16 4.2. Shopping Behaviour of Older Urban Customers in Grocery Stores The following three main themes emerged from the interviews: shopping habits, in-store difficulties, and recommendations for improving the shopping experience for older customers. In terms of shopping habits, older customers are most likely to go grocery shopping once or twice a week, with men reporting shopping more frequently than women. They seem to prefer smaller purchases, which they do more often (“I like it better when I only buy 2 or 3 things. It is easier to carry. This means I have to go shopping every other day”; “I go shopping to meet neighbours and stretch my legs”). Bezirgani and Lachapelle (2021) have previously documented the influence of age on grocery shopping frequency, with older customers shopping more frequently. Although most respondents in this study are retired and live on a fixed income, which makes them more cautious about spending and more sensitive to price changes, two-thirds said that quality is more important to them than price (“I value brands and the retailer’s reputation is very important”), and no difference was found between men and women in this regard. More conservative spending habits were found in this sample. Older consumers in this sample prefer physical purchases over online purchases (“I hate online shopping. As long as I can move, I will go to the shop”; “Internet shopping is not for me!”; It is too complicated! My children like it”), and retailers should therefore make a special effort to enhance their in-store shopping experience by offering free items, special rewards, exclusive events, and special promotions tailored to older customers. Further suggestions can be found in Table 1. Table 1. Summary of comments and recommendations for retailers (based on the interviews). What Older Customers Shared in Interviews Dos and Don’ts for Retailers Focus on personal consumption Emphasise products and services for personal consumption in marketing communication. Enjoy shopping, consider it a leisure and social activity Enhance shopping experience Go grocery shopping 1–2 times a week, prefer smaller packaging, tend to spend more time shopping (take time to make decisions, compare prices, and see shopping as a social activity) Avoid bundles and multi-buy offers for this demographic. Provide comfortable seating area for rest, do not rush them. Avoid time-urgency marketing strategies, introduce special loyalty programmes. Use smart phones, but prefer offline marketing Use traditional media—print, TV, and multi-channel marketing—in order to encourage online shopping with older customers. Make online shopping platforms user-friendly with large fonts, simple navigation, and an easy checkout processes. Drive cars Ensure there is ample, convenient parking with wider spaces close to the entrance for older customers (similar to parking for the disabled). Are less influence by peers/family, prefer to make their own decisions Craft marketing messages that speak directly to the individual, emphasising personal choice and autonomy. Be transparent about pricing, ingredients, sourcing, and manufacturing processes to build trust and facilitate informed decision making. Prefer to make informed decisions Tend to spend time looking around Provide detailed product descriptions and educational content (in-store presentations, how-to videos, brochures, guides, or short workshops). Create interactive product displays and demo stations that help older customers understand and use products effectively, helping them make independent decisions. Adm. Sci. 2025,15, 120 7 of 16 Table 1. Cont. What Older Customers Shared in Interviews Dos and Don’ts for Retailers Value quality over price, appreciate practicality of products, prioritise long-term value over initial cost Highlight value and benefits of products when communicating with older customers. Communicate how products improve quality of their life, well-being, and independence. Emphasise durability of products. Offer information on health-related products and how they can benefit older customers. Are bargain-oriented for needed items but ready to splurge on desired products Offer competitive pricing, discounts, and promotions on essential items, and position high-quality, premium products as desirable splurges. Design targeted marketing campaigns that highlight discounts and value deals on necessities. Use storytelling and aspirational marketing to promote splurge-worthy items. Emphasise how these products enhance lifestyle, well-being, or bring joy. Suggest desirable, higher-margin items that complement essentials purchase (e.g., offer a premium skin care product alongside basic toiletries). Clearly designate sections of the store for bargains and essential items (easily accessible and well-stocked), and create visually appealing displays for high-end, desirable products. Solicit feedback from older customers about their needs and preferences for essential items, using surveys, focus groups, and in-store conversations. Gain insights into what types of products older customers consider splurge-worthy and adjust inventory and marketing strategies accordingly. Chose private labels when notice little differences between branded and private label products When nudging to buy more expensive products, clearly communicate the differences. Consider retailer’s reputation important, are perceptive to socially responsible retailers Provide clear and honest information about products, including materials, origins, and usage instructions. Be transparent about pricing, discounts and product information. Avoid hidden fees and fine print that can cause distrust Be consistent in brand messaging and customer experience across all channels. Secure positive word-of-mouth. Value tidiness Maintain high standards of cleanliness in stores. Ensure they are well lit and well maintained. Implement and communicate strong health and safety measures, especially important for older customers who may be more health conscious. Are loyal to products, services, and retailers and resistant to change Develop loyalty programmes with special discounts, offering rewards and benefits for older customers. Maintain consistent quality and reliability in products and services. Do not read product labels regularly Ensure large, clear fonts. Provide magnifying glasses on carts. Adm. Sci. 2025,15, 120 8 of 16 Table 1. Cont. What Older Customers Shared in Interviews Dos and Don’ts for Retailers Appreciate friendly assistants Train staff to be patient, friendly, and attentive to older customers, and to act as advisors rather than pushy salespeople, offering information and guidance without pressure. Encourage staff to listen carefully to the needs and preferences of older customers, providing personalised recommendations based on their input. Hate lines and rush at checkouts, find product relocation confusing Provide personal shopping assistants to help older customers find what they need. Ensure the physical store layout is easy to navigate independently with wide aisles, clear signage (large fonts on signs), and accessible facilities. Prefer physical shops to online shopping Focus on enhancing in-store shopping experience. Ensure your website is user-friendly with large fonts and simple navigation. Provide online customer support to assist with any questions or issues. Expect personalised shopping experience Insist on personalised and respectful interactions. Staff should be trained to understand and address the specific needs of older customers, to be patient, respectful, and helpful, providing a comfortable shopping experience tailored to older customers. Use clear, straightforward messaging. Regularly seek feedback from older customers about their shopping experience and areas for improvement. Show appreciation by making visible improvements based on their suggestions. Respondents indicate that they have a lifetime of experience in managing budgets and therefore value frugality. They often look for value for money, look for quality products at reasonable prices (“If you ask me, the best is when I find a good product at a good price”), and are more likely to compare prices and look for discounts (“I am happy to take advantage of special promotions or discounts”; “I am so happy when I find something on reduced price. I buy such products for my children, too. When they get to the store after work, everything is gone”; “I plan my big shopping on days with senior discounts (once a month)”). They are also more thoughtful when it comes to their purchasing decisions. They expect retailers to tell them why prices are higher and what customers are receiving for that price. This is probably why they do not respond well to time-limited marketing strategies. Therefore, regular discounts, loyalty programmes, and senior discounts may attract more older customers to grocery stores. “I am not interested in bulk offers because I live alone and fear that I will not be able to use up the products before the expiration date”. Instead of these marketing campaigns, retailers should emphasise the quality and durability of the products, as it was also found that older urban customers prefer long-term value over initial cost. The practical benefits of the products were often emphasised in the interviews (“When I buy, I want to know how this will help me live better or easier. And I want a proof”; “I do not mind paying (more) if I know what I get for my money”). For this reason, retailers trying to sell to this customer group should not focus on the products but rather convey the message of what this product will do for them by using a clear, straightforward message that emphasises the value and benefits of the products. This shows that older urban customers want similar products to younger generations, but they want them for different reasons. Adm. Sci. 2025,15, 120 15 of 16 Why do you like shopping malls (Portanova, Avenue Mall, Stop & Shop, etc.)? (e.g., cafés, cinema, play area) Why do you go to shopping malls? How would you describe an ideal grocery shopping experience? After shopping, do you like to sit in a nearby café? CHALLENGES/PROBLEMS IN STORES What is the biggest issue for you in stores? Is it important to you that stores are near your home or public transport? Is it important that the parking lot is spacious, always has spots, and has wide parking spaces? Do you buy products on sale? Do you shop online? Do you buy discounted products close to expiration? Do you buy bulk/XXL packaging because it’s cheaper? Are you satisfied with store service (friendliness, packing bags, product information, help finding products)? How important is service quality when choosing a store? 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