Gen Z's Grocery Habits

Good morning, Nerders. It’s Tuesday, July 16th. In today’s newsletter, we cover:

• How Gen Z is saving money on groceries

• The self-storage industry is facing significant headwinds

• Nike’s big miss: run clubs

TODAY’S STORY

Grocery prices have increased 25% over the past four years, outpacing overall inflation of 19% during the same period.

Younger generations are opting for big-box warehouse club retail stores like Costco and Sam’s Club, where they can buy in bulk and split the costs with their friends and family:

• At Walmart-owned Sam’s Club, memberships for shoppers aged 27 and under grew by 63% over the past two fiscal years—representing its fastest-growing customer segment

• In a survey of 1,000 customers by the market research firm Advantage Solutions, almost 40% of shoppers between the ages of 25 and 34 split the cost of bulk grocery purchases with friends, family, neighbors, etc.

Costco and Sam’s Club have both reported net sales increases this year while also trying to reduce membership sharing. Costco is testing scanners at entrances to ensure members are who they say they are, and Sam’s Club has quietly added new digital barcodes to stop screenshot-sharing.

To your Gen Z girlfriend, your Costco card might still be your best feature.

DATA BYTES

Many developers and entrepreneurs went all in on self-storage during the pandemic, but the industry is now facing significant headwinds:

• Demand is cooling: A wave of people fled big cities to be closer to family or in search of more space during the pandemic, but now people are not relocating as much

• Costs are rising: Increases to property taxes, property insurance, and higher interest rates have made it more expensive to run and finance self-storage businesses

Many self-storage operators are offering promotional deals to attract new customers while also trying to raise prices on existing customers (a bet that they won’t spend a weekend moving their stuff to chase a lower rate).

OUR PICKS

Here are today’s recs to help you live a smarter life…

1. Built for the wild.

This YETI cooler combines versatility with durability with a capacity of up to 26 cans and a 2:1 ice-to-contents ratio. $90 off for a limited time.*

2. Made with 30+ good-for-you ingredients.

This drink supplement supports gut health and digestion, works to reduce bloating, and promotes energy levels.*

3. Enjoy shaved ice at home this summer.

Prepare cool treats quickly at sleepovers, pool parties, birthday parties, and other family and friend get-togethers.*

#SHORTS

How Nike missed on run clubs

@boringbusinesskieran

Nike & Run Clubs 🏃‍♂️👟 #business #nike #runclub

Watch on: TikTok, YouTube, Instagram

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To read the web version of previous stories, click here

If you have any comments or feedback, just respond to this email.

Thanks for reading,
Kieran & Justin Ryan