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Published
Jan 13, 2017
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Survey shows almost all of Gen Z shops in-store

Published
Jan 13, 2017

Retailers continue to shift their methods according to the shopping habits of Millennials, Generation X customers, and Baby Boomers, but a new study from the National Retail Federation and IBM shows that retail’s saving grace may be Generation Z.



 
Despite being the first “digitally native” generation, Generation Z, which is comprised of consumers born after the mid-1990s until the early 2000s, still shops in stores. The NRF study found that 67% of Generation Z consumers shop in brick-and-mortar stores most of the time, and another 31% shop in-store sometimes. Altogether, 98% of Generation Z shops in stores.
 
The global Generation Z population is set to reach 2.6 billion by 2020, and they have access to $44 billion in buying power. The study also found that 75% of Gen Z consumers spend more than half of the money that is available to them each month, 52% transfer loyalty from one brand to another if the brand’s quality is not up to par, and 66% consider product quality and availability to be the most important factors while 65% focus on value.

“Generation Z expects technology to be intuitive, relevant and engaging — their last great experience is their new expectation,” IBM General Manager of Global Consumer Industries Steve Laughlin said. “This presents a significant challenge for retailers and brands to create a personalized, interactive experience with the latest digital advances or risk falling behind. This kind of innovation is not linear or a one-time project — it is a new way of thinking, operating and behaving.”
 
In regards to technology, 73% of Generation Z use their phones to text or chat with friends and family, 62% will not use apps or websites that are difficult to navigate, 60% will not use apps that are slow to load, less than 30% are willing to share health and wellness, location, personal life or payment information, and 61% would feel better sharing personal information if it would be securely stored and protected.
 
“Just as Millennials overtook Gen X, there’s another big buying group retailers need to plan for, and it’s even larger: Generation Z,” NRF President and CEO Matthew Shay said. “They appreciate the hands-on experience of shopping in a store. With technology constantly evolving but some shopping habits remaining the same, retailers need to be agile enough to serve both needs. Retailers are constantly focused on experimenting with new innovations both online and in-store to remain relevant to evolving consumer demand.”
 
The “Uniquely Gen Z” study conducted by the IBM Institute for Business Value is based on findings from more than 15,000 consumers aged 13-21 from 16 countries. The study did not make a mention about how many respondents have credit cards or debit cards to be used for e-commerce purchases.

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