In-Store Shopping is still alive, but frustrations are high.
RetailNext, known as “the pulse of the store” for its innovative in-store analytics platform, has unveiled its first Retail Vibe Check Report, offering fresh insights into Gen Z’s shopping habits. With a staggering $360 billion in spending power in the US, this generation presents both significant opportunities and challenges for retailers.
Contrary to popular belief, Gen Z is not shunning physical stores; they are calling for an evolution in the in-store experience. This demographic, which seamlessly navigates both digital and physical realms, is increasingly frustrated by long lines, crowded spaces, and out-of-stock items. They expect the same level of convenience and personalization in stores as they do online. In fact, 69% of 18-24 year-olds shop at brick-and-mortar locations weekly, yet they are leaving stores empty-handed more than any other age group. A huge percentage (35%) of Gen Z shoppers abandon their purchases due to these frustrations, with 66% citing long lines as their top complaint, followed closely by crowded aisles (55%) and difficulty locating items (47%).
Joe Shasteen, Global Manager of Advanced Analytics at RetailNext, emphasizes the importance of meeting these expectations: “As Gen Z continues to shop in physical stores, they bring with them high expectations for convenience, speed, and efficiency. Retailers must optimize every touchpoint, from self-checkout options to on-shelf availability, to keep this critical demographic engaged and coming back.”
Interestingly, Gen Z is open to technology-enhanced solutions. Approximately 42% of this generation are interested in using self-checkout kiosks or cashier-less options to reduce wait times, while 27% express a desire for AI-powered chatbots for personalized support.
What Drives Gen Z’s Purchases?
Social media plays a pivotal role in Gen Z’s shopping decisions. About 24% report making purchases due to social pressure, a stark contrast to just 4% of older generations. Additionally, 23% are influenced by viral trends on platforms like TikTok and Instagram, highlighting the significant impact of social media on their in-store choices.
Impulse buying is also prevalent among Gen Z, with 70% drawn in by limited-time offers and 50% by appealing displays or packaging. Retailers that create visually striking environments and instill a sense of urgency can capitalize on this generation’s spontaneous shopping tendencies.
Gen Z has grown up in an on-demand world, yet they often find themselves frustrated in stores that haven’t adapted. Retailers who fail to modernize risk losing this influential group to the more agile e-commerce options they prefer. Gen Z isn’t just a consumer segment; they are driving brick-and-mortar stores to become smarter, faster, and more intuitive.
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