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Wendy Liebmann
There has been so much focus on this generation over the last few years: how they were different from every other generation before or after them, how they were going to change retail and shopping for just about every category of business — from CPG to fashion. Much of that is true and, as the second-largest population in the U.S. after Millennials, their impact has certainly been felt. And will be. That said, there are also a lot of myths around them as shoppers. To unravel them reveals the opportunities.
Gen Z is getting old(er) and more powerful
The oldest members of Gen Z are now 27 years old (the youngest are 12). Yes, they are grown up, many with families of their own. We’ve been tracking them in our How America Shops research for a decade, since the oldest was 16 years old.
At nearly 70 million strong they wield $360 billion in disposable income, according to Business Insider. Indeed, they are a shopper force with outsized influence, thanks to the digital feeds they’ve been absorbing since toddlerhood — and they have very particular preferences.
What separates Gen Z from other generations
Our research revealed five Gen Z-specific preferences that separate the generation from the general population. Consider this as a guide to what matters, what to offer and where to offer it if you want them in the store (be it physical or digital).
Trend 1: Scanning beats location for ease. Gen Z has grown up with self-checkout lanes. Using them comes as naturally as using smartphones. So, retailers, before you eliminate your self-checkout lanes recognize this generation may go elsewhere.
• 42% of Gen Z think it’s most important to get in and out of a store quickly, which supports their passion for self-checkout …
• 46% rank self-checkout as the most important service for an easy shopping trip. That’s 10 to 13 percentage points higher than Millennials, Gen X and boomers.
Trend 2: Bytes beat bricks, but bricks have staying power. Gen Z are more likely than total consumers to shop their values for re-use and their passions for uniqueness. They are also more likely to shop social media sites and the newest online shops from China. So, if you’re wondering where your trips have gone, read on …
• Thrift/consignment websites: 29% of Gen Z shop here, 15% more than other consumers.
• Etsy: 30% of Gen Z buy from the indie-artisans’ market, 10 percentage points above the total population.
• Social media sites: 38% of Gen Z buy from social platforms such as Instagram and TikTok, 14 percentage points more than the total population.
• Online marketplaces from China: 35% of Gen Z buy from retailers such as Shein and Temu, 11 percentage points more than the total population.
• And yet they find value in physical stores. It may come as a surprise, but Gen Z, regardless of all their expertise with digital tools, still rely on store displays (64%) and shelves (66%) to find new products. And they see the physical store as a social opportunity in their screen-focused digital life.
Trend 3: True beauty aficionados. If you want to grow these categories, pay attention to Gen Z, who are most likely to buy them compared with the total population:
• Cosmetics: 75% of Gen Z buy versus 56% of the total.
• Fragrance: 50% of Gen Z buy personal fragrance versus 35% of the total.
• Facial skin care: 63% of Gen Z buy versus 52% of the total.
• The sun care message has gotten through to Gen Z, with 54% buying sun care versus 39% of the total.
Trend 4: Particular in their food choices.
• Gen Z are the most likely to rank organic and vegan foods important — up to 9 percentage points more than the total. But they care less about added sugars, artificial ingredients and artificial colors, which indicates which food claims will be important to them in the future.
Trend 5: Need a hand asking for a hand. Gen Z consumers are the most stressed-out generation. (Anxiety and depression are the No. 1 health issue they report to us.) If retailers and brands want to keep them in the store, consider …
• They resist items under lock and key because they are less likely to ask for help: 47% of Gen Z is uncomfortable asking store personnel to help with locked-up items, nearly 20 percentage points higher than the total population.
• Gen Z wants mental wellness: 34% of Gen Z increased spending on mental health care in the last three years, 13 percentage points more than the total population. Retailers and brands would benefit by reassuring this generation that they’ve got their mental well-being in mind.
Is your store built for all
the ages?
The reality -— and opportunity — here is to recognize this is a complex generation. Many are now older than you might think, with families and everyday needs to support those families. The way they shop and where they shop is sometimes similar and at the same time very different than their Millennial counterparts. Their shopping world is big, wide and fragmented. And their shopping choices are not always obvious. Their influence and impact are dramatic but not always easy to recognize. In the end, attention must be paid to the realities, not the mythology, of this generation.
For more about the shifting demographic landscape and its impact on health and wellness, join us on June 6 at our in-person symposium on “The Future of Health: What Shoppers Really Want.” Go to wslstrategicretail.com for more information.
Wendy Liebmann is chief executive officer and chief shopper of WSL Strategic Retail, a global consultancy that specializes in shopper insights and retail strategy, and publisher of How America Shops and Retail Safaris.
