Could older consumers drive a longevity dividend for the night-time economy?
By David Sinclair
Older people are significant contributors to the economy and could play a major part in helping revitalise the evening and night-time economy, a sector hit hard by COVID-19.
Yet this is a sector of the economy which really doesn’t seem to “get” ageing or demographic change.
As part of the work we have been doing on the future of the high street, I’ve spent a couple of years trying to engage policymakers, planners and industry about the importance of demographic change. Yet all too often, I’m faced with “that’s really interesting” and “But older people aren’t going to go to nightclubs, are they?”.
The failure to explore the role of older people as part of the debate on the night-time economy highlights the implicit ageism within industries and policymakers interested in this sector.
And putting aside that many people of all ages might like to go to nightclubs, the lack of imagination in a sector that faces existential crisis seems somewhat surprising.
ILC research has revealed that spending by older consumers may rise from 54% (£319 billion) of total consumer spending in 2018 to 63% by 2040 (£550 billion). At the same time, people aged 50 and over are shifting their spending towards non-essential purchases such as leisure.
ILC analysis predicts that the top three growing sectors for older consumers are recreation and culture, transport, and household goods and services.
Before COVID-19, the UK’s evening and night-time economy benefited from annual revenues of around £66bn. It was the UK’s fifth-biggest industry.
Yet, despite the spending power of older people and the importance of night-time spending to the wider economy, this group is invisible from debate and innovation in this space.
Over the past decade, there has been much work on making towns and cities age-friendly. But a city isn’t an age-friendly city if it doesn’t work for all ages after 6pm.
The invisibility of the needs of older consumers in the evening isn’t just down to age discrimination, though. There is a demand-side as well as a supply-side issue.
Some older people won’t go out because there is no transport to get them home. But because few people use public transport, there isn’t enough demand to make it sustainable.
Some people are afraid of crime in the evening, but the absence of people makes places feel less safe, not more. Thriving town centres in the evening make places more attractive for all ages and, for example, reduces the fear of crime.
Of course, since the pandemic, there has been a different fear. Shops, restaurants and cafés adapted well to encourage people back to town centres post-lockdown. But we must continue to be aware of the needs of more vulnerable people and keep shops, restaurants and cafés well-ventilated.
The lack of understanding of the older consumer by companies who rely on the night-time economy is not surprising. But many restaurants and theatres will increasingly realise the importance of the 50+ consumer who may spend more than younger people.
It’s not just about spending money, though. The night-time economy is not seen as a natural place for older workers. Yet it is a sector that (before COVID-19 at least) reports increasing recruitment challenges.
“1 in 5 hospitality businesses in the UK find recruitment harder each year and have concerns about hiring in the future. … And even if you can recruit, some businesses in the industry are struggling to retain them. There is no denying there is a global skills shortage in hospitality “[1]
Yet I have yet to find an initiative by the industry which mentions or recognises the potential of older workers. Suggested solutions to the recruitment challenge are often focused on migration, improving pay and conditions, or convincing young people that hospitality is a career they should consider.
Systematic change needs local leadership, and few places know what they can do. Even if they know what should be done, they don’t know how to do it.
So, what needs to happen?
- Town planners must learn more, think more and plan more about the role of the older consumer.
- Innovators in the evening and night-time economy must design for all, not just the young
- Businesses must adapt their evening “offer” for older consumers.
But what does this mean in practice?
It might mean cafes opening in the evening and licencing rules reviewed. It might mean investment in quiet spaces in the evening. It might mean community spaces created for all ages and open late into the day. It might mean supporting spaces which don’t serve alcohol. It might mean public toilets open into the evening and not just until the shops close.
This week, we are launching a new programme of work that will explore how the retail sector can support healthy ageing. As part of this work, we want to challenge ageism and look to support a vibrant retail high street during the evening as well as the day. The high street, planners and retailers, can play a part in supporting healthy ageing, but we can’t limit that role to 9am-5pm.
[1] Berkeley-Scott – Tackling the skills shortage in the hospitality industry
David Sinclair
Director, ILC
David has presented on longevity and demographic change across the world (from Seoul to Singapore and Sydney to Stormont). David won the Pensions-Net-Work Award for “The most informative speaker 2006-2016”. He is frequently quoted on ageing issues in the national media.
David has a particular interest in older consumers, active ageing, financial services, adult vaccination, and the role of technology in an ageing society. He has a strong knowledge of UK and global ageing society issues, from healthcare to pensions and from housing to transport. He has published reports on a range of topics from transport to technology and health to consumption.
He has worked as an “expert” for the pan-European Age Platform for 15 years. David the former Vice-Chair of the Government’s Consumer Expert Group for Digital Switchover. For ten years he chaired a London based charity (Open Age) which enables older people to sustain their physical and mental fitness, maintain active lifestyles and develop new and stimulating interests.
Prior to joining the ILC, David worked as Head of Policy at Help the Aged where he led a team of 8 policy advisors. David has also worked for environmental and disability organisations in policy and public affairs functions. His other experience includes working as a VSO volunteer in Romania, in Parliament for a Member of Parliament, and with backbench committees.
David is a retired football referee, is married, and has a 13 year old son. He runs (slowly) and cycles (a little quicker) and once scored a penalty against Peter Shilton.