It is a common misconception that the younger generations only shop and engage with brands online. A recent study released by IBM and National Retail Federation is proving this to be untrue. Below are a few statistics about the shopping habits of those who are 13-21 (also known as Generation Z).
Generation Z is the first “digitally native” generation, growing up not knowing a world before cell phones, smartphones and 24/7 online access. Despite expectations that this group would prefer to shop online, this new study found that almost all members of Generation Z prefer to shop in bricks-and-mortar stores.
- 67% of Generation Z shop in a bricks-and-mortar store most of the time
- 31% shopping in-store sometimes
- 98% percent shop in store
Why is this important to retailers? There are over 2 billion people in the world between the ages of 13-21 and they have access to over $40 billion in buying power. This generation is also extremely influential on overall household spending.
- 75% of people in this age group spend at least ½ of the money available to them each month
- 74% spend their free time online
- 77% influence their families food and beverage purchases
The degree to which in-store sales are influenced by digital is inevitable in today’s shopping journey. While this age group appreciates the hands-on experience of shopping in a store, they also expect online experience to be intuitive, relevant, and engaging.
- 62% will not use apps or websites that are difficult to navigate
- 60% will not use apps or websites that are slow to load
- >30% are willing to share health, location, or payment information
- 61% would feel better sharing personal information if they felt it would be securely stored and protected
Generation Z is demanding, caring mostly quality and value and overall experience when it comes to shopping.
- 52% will transfer loyalty if a brand is not up to “par”
- 66% state that quality and availability are most important
- 65% focus on value
Knowing what is important to this age group and how to reach and engage with them is an important factor for retail success.
Read more about this study and download the full report in the attached article.