What Gen Z want from physical retail
What: Despite being the most digitally savvy generation, Gen Z loves to shop in physical stores, but differently from older consumers.
Why is it important: 81% of Gen Z prefers to shop in stores and more than half do so because it allows them to disconnect from social media, a Kearney survey found. That desire means retailers are going to have to focus on creating the feeling of community while offering a selection of products that appeal to Gen Z tastes.
In fact, 98% of Gen Z shoppers globally said they typically make purchases in a store some or most of the time, according to a survey by IBM. Three times as many Gen Zs said they shop most of the time in a store compared to the number who said they shop most of the time online. That may be because, Gen Z is one of the loneliest and most isolated of all generations.
Brands need to start dedicating space for these kinds of decompression zones if they want to attract the Gen Z shopper. A good Gen Z store should also be hyper-focused. When asked what they are looking for once they arrive in-store, three out of four Gen Z shoppers told Kearney a “well-curated store experience focused on a limited number of products” was extremely or moderately important to them.
For Gen Z shoppers, physical retail spaces are all about escaping the algorithm, to see things outside your filter bubble. In that sense, brands are starting to move away from rollout strategies and designing each of their stores with more modular, flexible concepts. This is key given a poor in-store experience has led one-quarter of Gen Z shoppers to skip making a purchase.
Stores of tomorrow need to trigger memories that are beyond the transactional approach. Given the luxury industry is predominantly about recruiting first-time shoppers, not repeat purchases, the role of stores continues to be very important.