By Laura Lee Published September 13, Personal Finance FOXBusiness. Millennials may have surpassed Baby Boomers as the largest living generation but Baby Boomers still hold the spending power.
With that kind of financial might, analysts expect Baby Boomers will continue to ignite a consumer spending boom over the next several years.
They have the money to spend. So where are Boomers spending their extra money? Hermanson says one big area is travel. Whether it is visiting family members, taking a cruise or traveling to a dream destination, AARP found in a recent survey that a whopping 99 percent of Baby Boomers plan to travel this year. Once-in-a-lifetime international trips are especially popular among Boomers along with warm destinations including Florida, Las Vegas, the Caribbean and Mexico.
Beneficiaries of the travel boom may include airlines such as Delta Air Lines DAL , United Continental UAL and JetBlue Airways JBLU as well as cruise line operators including Royal Caribbean RCL.
Travel websites TripAdvisor TRIP , Priceline PCLN and Expedia EXPE also stand to benefit. Another large area of spending for Boomers is healthcare. Baby Boomers want to keep an active lifestyle and remain young-spirited. To help facilitate the goal, demand for pharmacy prescriptions, vitamins and other health-related products is expected to increase.
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Boomers already outspend Millennials and Generation Xers on healthcare and medicines annually according to Kantar Retail.
Hermanson says small box retailers, not large super centers, including CVS Health CVS and Walgreens WBA stand to benefit from the pick-up in healthcare spending among Boomers.
Baby Boomers are also shelling out big bucks on pets and that is helping to fuel the growth in the pet industry.
Analysts say Boomers spend more on pets each year compared to their younger counterparts and the spending boom is likely to continue. They are not working and it makes more sense.
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Pet retailers including PetSmart PETM may see sales grow as well as healthcare providers such as VCA WOOF. Hermanson says grocery chains and other retail stores are making a push to expand their pet offerings and should also benefit from higher Boomer spending. Baby Boomers are spending more on their homes too especially when it comes to home improvement. Kantar Retail found Baby Boomers spend more on home improvements and repairs annually compared to any other age group.
Boomers are also dishing out more to watch their favorite television programs at home. A Gallup survey found 40 percent of Boomers said they were spending more on cable and satellite television.Baby Boomer Making Money Online
Boomers are also not rushing to cut the cord like many Millennials. Only 15 percent of Boomers said they plan to switch from cable or satellite television to an online streaming option according to a Nielsen survey. This is welcome news for cable and satellite tv providers including Charter Spectrum CHTR , Comcast CMCSA and DirectTV DTV. Quotes delayed at least 15 minutes.
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Where Baby Boomers Spend Their Money and How to Profit From It By Laura Lee Published September 13, Personal Finance FOXBusiness. Facebook Twitter Comments Print. Click the button below to comment on this article.