Shopping like Gen Z

A new way of shopping

Gen Z (those born approx. between 1995 and 2012) is rewriting the rules of shopping with their unique habits. They’ve grown up in tough economic times, which means they have to make smart shopping decisions. Perhaps because of this, they've started something called "loud budgeting," where they're open about not spending on things they can't afford. That’s also why they like to fill their online shopping carts and think over their choices before buying. Even though they're all about online, Gen Z still enjoys going to physical stores. About 28% of them say walking around a store makes them want to buy more, just a bit less than the draw of finding a good discount or sale.

For Gen Z, shopping isn't just online or just in-store. They need both to sway their minds. They might look at something on their phones, check it out in a store, then go back online to buy it. They expect their shopping experience to be smooth, however, no matter how they do it. They also care a lot about supporting brands that share their values on important issues like mental health and the environment. But instead of volunteering or donating, they prefer to show their support by where they shop.

The impact of their choices

This generation likes to mix things up, as they enjoy shopping both online and in stores. They go for instant buys in shops and enjoy touching and seeing what they're potentially buying. At the same time, they use online shopping to compare prices and grab the best deals easily. This blend of in-store and online shopping could be an indicator of where retail is heading.

Gen Z also brings technology into their shopping in a big way. They're comfortable with using AI to help them shop, like finding better prices or getting quick answers to questions. This comfort with tech and a demand for a hassle-free shopping experience mean retailers must adopt new tools and make shopping as easy as possible.

Catering to Gen Z's shopping behaviors will attract more business and, hopefully, drive the evolution of retail towards a more integrated, tech-enabled future.

Adapting to Gen Z: practical steps for retailers

Retailers face the challenge of aligning with Gen Z's distinct preferences. Here's how you can successfully navigate this shift:

1 Provide Gen Z with engaging in-store experiences

Emphasize hands-on product interaction and personal connections with staff. The immediacy of physical stores meets their instant gratification needs and plays a big part in their comprehensive shopping journey. Brick-and-mortar stores are here to stay, as we’ve previously explored in this blog.

2 Implement AI to streamline the shopping process

From personalized product recommendations to efficient checkout solutions - Gen Z appreciates being able to explore products from various brands in one seamless transaction.

3 Use the physical store to upsell and cross-sell

Leverage the influence of store associates on purchasing decisions. Better in-store interactions and in-store returns offer additional opportunities to engage and sell to Gen Z customers.

4 Incorporate flexible payment solutions

Use payment solutions like buy now and pay later to make larger purchases more attainable for Gen Z and their budget-conscious shopping habits.

5 Give Gen Z multiple touchpoints

They require multiple touchpoints before committing to a purchase. Instead of expecting immediate conversions, nurture relationships through various brand interactions and community building on social platforms.

A new era of retail?

Gen Z's shopping habits are changing how we all shop, making retail more exciting and personal. However, this new way of shopping also means that making a sale might take longer than usual, which will impact the way retail businesses operate. But by tailoring their stores and websites to meet their demands, retailers are improving shopping for everyone and thus actually catering to a broader and more varied customer.