Changing Demographics
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Baby Boomers at Home
Kerry McKay
Summary by Elliot
Friedman
Kerry McKay and Kim Bartkiewicz of McKay’s Furniture discussed trends in home furnishing and the changes in their business structure as Baby Boomers continue to age. Kerry McKay is the third generation of the family business and helps run the store. Kim Bartkiewicz works at McKay’s as an interior consultant. Both graduated from the University of Rhode Island.
Baby Boomers, 35-55-year old Americans, are the demographic age group that McKay’s Furniture targets. Born after World War II, Baby Boomers have learned about value from their parents who lived during The Great Depression. As first-time furniture buyers in the 60s and 70s, Baby Boomers were looking for quality furniture to last a lifetime at a good price. Now that Boomers are starting to retire and have saved money for twenty to thirty years, they want what they could not afford as first-time buyers. This includes quality furniture combined with luxurious fabrics, wood and finishes.
Since McKay’s targets secondary and repeat buyers, they rely on customer service to bring back customers such as Baby Boomers. The importance of customer service lies in the fact that McKay’s is a small store and must compete against larger furniture chain stores, such as Cardi’s and Jordan’s Furniture. Another reason is that the best customer is the one that comes back. McKay’s fosters the return of the customer by sending furniture combination choices to the buyer’s home for a length of time. This creates a fond memory of McKay’s and the buyer is not only more likely to return to McKay’s for a second purchase, but will likely recommend McKay’s to a friend.
As far as new customers are concerned, McKay’s is seeing new trends in what they desire in furniture and price. Some new customers are the children of the Baby Boomers, who have been given an excess of money from their parents. They are more interested in the style of the furniture than the quality. Lower quality includes ready-to-assemble furniture that will last twenty to thirty years. However, it is a policy in McKay’s Furniture never to lower the quality of the furniture. New customers are also looking to finance furniture, sometimes by credit or by loans. The old philosophy was to save until one could afford the merchandise.
Competition is a major battle in the furniture business. Companies such as Cardi’s and Jordan’s Furniture spend 3 million dollars on advertising alone and some also include rides such as M.O.M. in their stores to make kids want to go back, which makes parents want to go back. They also have the Rhode Island Interior Design Center which provides professional interior consulting. This is where Kim Bartkiewicz fits into the McKay’s Furniture plan. Kim provides professional interior consulting in which she makes home visitations to measure, creates floor plans including the major components of a room, and offers full services including the shipment of furniture combinations to the buyer’s home. This personalized service is McKay’s response to its competitors.
As for factors that will influence the future of McKay’s, Kerry sees the Baby Boomers moving into smaller houses and condominiums while making more money off the sale of their larger houses, leaving more disposable income for furniture. Kerry also sees the Internet as an insufficient means to sell furniture because the buyer cannot touch the merchandise. Kerry also sees a shift in McKay’s target market. Focusing on and targeting Generation X is the next project the company has for the future. This demographic will have more money and education than their parents.
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| Kerry Mckay (upper right) sits with two generations of McKay's |