What: Retailers must adapt their physical spaces and services to accommodate an aging urban population that will reach 2.1 billion by 2050.

Why it is important: Making cities age-friendly through retail adaptation will reduce healthcare costs and create economic opportunities through increased senior citizen spending and mobility.

The intersection of urbanisation and aging populations presents a critical challenge for cities worldwide, with the population of people aged 60 and over projected to double to 2.1 billion by 2050. According to BCG's research, approximately 1.5 billion of these individuals will reside in urban areas, necessitating significant adaptations in retail environments. The World Health Organization emphasises that physical and social environments directly impact older people's health, highlighting the need for accessible buildings and walkable spaces. This transformation requires retailers to reimagine their spaces and services, from implementing safety features to redesigning customer experiences. The economic benefits are twofold: reduced healthcare costs through better mobility and increased revenue from economically independent seniors who may choose to relocate to cities with superior facilities.

IADS Notes: Recent retail developments demonstrate the growing importance of age-friendly adaptations. In February 2025, studies showed that retailers implementing specific changes, such as lower bed heights in hotel rooms and non-slip flooring, saw increased patronage from senior citizens. By October 2024, retailers transforming into "third spaces" reported significant success in fostering community connections among older customers. These adaptations align with BCG's findings that cities offering retirement visas and age-appropriate infrastructure are seeing economic benefits from attracting and retaining retired population.

Urban populations are ageing. How can cities adapt?