Gen Z prefers to shop in-store versus online
Generation Z prefers to shop in-store versus online, according to a new study from San Diego-based Interactions, a subsidiary of Daymon Worldwide, Stamford, Conn. For the study, titled “The Next Generation of Retail,” Interactions surveyed more than 2,000 Americans age 14-19, known as “Gen Z,” to explore this generation's shopping habits and how they prefer to interact with retailers and brands. Generation Z currently makes up 25 percent of the total U.S. population and possesses a buying power of $44 billion.
“Generation Z is constantly connected to technology, which retailers may find intimidating to overcome when it comes to in-store engagement,” said Bharat Rupani, president, Interactions. “However, our study found that this group is longing for retailers to provide an engaging in-store experience. In fact, when given the choice, over 64 percent prefer shopping in-store versus online.”
According to Interactions, cohorts from Gen Z are very price-conscious (89 percent), and they prefer to spend their money on experiences versus material items (62 percent). For instance, members of Gen Z spend most of their weekly budget on food (80 percent), while 48 percent allot their money toward experiences with friends. Retailers should keep in mind that this generation is looking to engage with and seek out products that provide both an experience and instant gratification. Additionally, 64 percent of Gen Z consumers prefer to use cash as their method of payment versus credit and debit cards.
Although Gen Z is one of the most digitally savvy generations, 64 percent prefer shopping in-store versus online, Interactions said. Three-quarters of Gen Z respondents also prefer to shop at retailers that provide an engaging in-store experience. When it comes to a satisfying in-store experience, the top three components Gen Z members look for are a clean store, friendly and knowledgeable associates, and a positive checkout experience.
Generation Z does not have strong brand loyalty, the Interactions study found. In fact, 81 percent are willing to switch from their favorite brand if they find a similar product at a higher quality. Similarly, 79 percent don’t care if a product is offered under a national brand or a private brand as long as it’s of good quality. And 80 percent of Generation Z consumers are willing to sign up for loyalty cards in exchange for deals/discounts.
Even with the uptick in retail cyber breaches, 78 percent of Generation Z trust that retailers will keep their personal information safe, although 59 percent avoid shopping at retailers that have been hit by security breaches in the past. In addition, three-quarters of respondents check a store’s app when they’re shopping for special offers before making a final purchase, and 75 percent would rather shop at a retailer that accepts mobile payments over one that doesn’t, Interactions stated.
Gen Z is the first generation to have grown up in a world of constant connectivity and instantaneous communication, with social media playing an instrumental role. Therefore, almost two-thirds (63 percent) of Gen Z consumers expect retailers to have a social media presence, and 60 percent prefer to shop at retailers that engage with them via social media. In fact, text messaging is Gen Z’s most preferred method for communicating with retailers and brands, yet less than one in five (19 percent) say they currently discover new products via text notifications from retailers, Interactions said.
The Interactions study also found that this generation is easily influenced: 82 percent state that the opinions of others on social media have influenced them to shop at a retailer they’ve never shopped at before. When it comes to what this generation is sharing on social media as it relates to shopping, 65 percent said they’re most likely to share a product’s quality, followed by positive customer service (46 percent). Gen Z also uses Facebook more often than any other social media site to research products before shopping (43 percent), engage with retailers or brands (43 percent) and post information about their shopping experience (42 percent).