Retail for Retirees

A coach pulls in to a parking lot of a nondescript building in an industrial park on the outskirts of Grossräschen, a small town just over an hour south of Berlin. Inside, the women, and one man, are getting ready for the runway. They're tying on colorful scarves, adjusting bright skirts and slipping on not stilettos but sensible shoes -- a first sign that this is no ordinary fashion show they're readying for.

The arrivals file in and sit at tables laid out with coffee and cake. A salesperson takes a microphone and introduces the first model, Frau Schütz, who comes out in a linen jacket and skirt. She's no beanpole-thin waif. Frau Schütz is well over 50 and has a figure that might be called Rubenesque.

But that's fine with the members of this group, aged from their early 60s to mid 80s. Fickle trends and size zero clothes aren't exactly what they're in the market for.

"Older people also want something chic and stylish, and they aren't going to fit into all these super-mini, extra-extra-small things they find in most fashionable stores," said Christa Putzke, the head saleswoman at the Deliga Senior Store. "We offer them clothes that fit this stage of their lives."

Products for the golden years

Besides the clothes on display on the 800 square meters (8,611 sq. ft.) of floor space, the store has a whole range of goods that meet the needs of the over-60 set. There are talking alarm clocks and telephones with large buttons that make it easier to use for people with poor eyesight and arthritic hands. There are amplifiers for radios and large magnifying screens for TVs.

A rack with support hose sits next to various kinds of underwear for people with incontinence, while the shoe section features non-slip soles, soft leather and insoles that make walking easier on tired feet.

At Deliga, everything is on one level; no stairs block access for those in wheelchairs or using walkers. The racks are spaced far apart so people can maneuver between them easily. The saleswomen are relaxed, friendly and don't pressure anyone to buy.

"When you look at stores now, they aren't at all set up for older people," said Putzke. "The whole market needs to adjust, though, given the realities we're seeing in Germany."

Gray horizons

The country is looking at a grayer future, age-wise. While about one in five Germans is over the age of 60 today, demographic studies show that by 2050, more than one in three will be in the golden years.

Already today, the senior consumer group has purchasing power that retailers shouldn't ignore. According to the German Institute of Economic Research, it is estimated at around 316 billion euros ($429 billion).

"But the big retail players seem to be asleep at the wheel," said Matthias Riepen, who is taking over the Deliga store and planning a relaunch in September. "Strangely, they don't seem to be looking at the senior market very much right now although numerous studies have shown it's the market of the future."

There have been some exceptions, such as the so-called "Generation Supermarkets" that have opened up that shops featuring wider aisles, large-print price tags, magnifying glasses on shelves and motorized shopping baskets with seats attached.

The Deliga store has not been without its problems. Opened in 2005, it filed for insolvency two weeks ago. Not because of the market, said Riepen, but because of mistakes in marketing and day-to-day operations. For his relaunch in September, Riepen plans on giving it a more modern name, updating its product assortment, and embarking on a franchising plan that, he hopes, will see up to three new stores opening in Germany next year.

"It's a concept that hasn't been tried yet with seniors, giving them everything they want under one roof," he said.

Attractive for every sector

Andreas Reidl, director of the Nuremberg-based Agency for Generation Marketing, a consulting firm specializing on the senior market, said that the silver-haired market for almost every sector is an attractive one, be it tourism, health products, financial services or food.

"The winners will be the ones who are successful in reaching this older clientele," he said.

Karin Bernau, 66, who had come with the senior bus group and ended up buying two blouses, a portable chair and a bootjack for her husband, was sold on the concept of a shop designed especially for her age group.

"I think we need more stores like this," she said. "It's the older people who have the buying power. They've got their pensions and can afford to spend a little."

He husband, Werner, 72, also had good words for the shop, but was rather lukewarm on the mature fashion show.

"It was fine," he said. "Of course, women who are a little thinner are more fun to look at, huh?"