Thursday, Aug 2, 17:00 PM EDT 2018
Understanding Generation Z: Shopping and Retail Habits
Insights on their spending patternsDOWNLOAD
Bart Schaller, CMO, Synchrony
Table of Contents
This “digital-native” generation still prefers shopping in-store
While they will spend time researching a product online, this generation of shoppers wants to see, touch and try the item before making a purchase. With online shopping, they say there is a risk of getting something they don’t like and having to return it. As 22-year-old Paige from NYC puts it, “How do you even mail something these days?”
This preference for purchasing in-store spans all retail categories. To satisfy Gen Zs, retailers must provide them with the seamless and enjoyable web-to-store shopping experience they expect. For instance, if they have shoes in their shopping cart while shopping online, they expect to have access to them when they are in the store.
- 75% Prefer shopping in stores with engaging in-store experiences.
- 64% Prefer shopping in-store vs. Online.
- 45% Nearly 1 in 2 gen zers say the experience of buying something is just as important as the product itself. Similar to millennials and gen x, but higher than boomers.
- 90% Groceries
- 66% Furniture
- 63% Household items
- 59% Accessories/ shoes
Gen Zers Highly Value the In-store Shopping Experience
Build Merchant Loyalty with Gen Z Now
In-store specials Fun experiences Live events
Gen Zs are less likely than Millennials to say they are interested in joining a frequent shopper program, partly because they don’t understand the advantages of doing so. This presents an opportunity for retailers to introduce loyalty benefits to Gen Z with rewards they find relevant and appealing.
When Shopping, Gen Zers Equally Like:
To succeed, brands must meet or exceed these expectations. Those who become proactive in understanding and delighting this generation will be the ones with a competitive advantage in the coming years.
Synchrony leveraged existing syndicated and secondary data to identify insights and knowledge gaps before kicking off Synchrony research.
Timing: May – July 2017
Synchrony partnered with market research and strategy firm Chadwick Martin Bailey to conduct an online immersion with Gen Z participants in four U.S. markets. Subsequently, in-home interviews (ethnographies) and shopping excursions were concluded.
Timing: October – November 2017
For comparison, Synchrony conducted a multigenerational survey with over 4,000 respondents.
Timing: December 2017 – January 2018