October 04, 2024
CAMPBELL, Calif. − (Highpoint Digest),
recognized as “the pulse of the store” with its leading in-store analytics platform, today released its inaugural Retail Vibe Check Report, showcasing new insights into Gen Z’s shopping habits.
Gen Z represents $360 billion in spending power in the US alone. Behind that massive figure is a story of opportunity—and missed connections. Gen Z lives at the intersection of digital and physical worlds—they’re not abandoning in-store shopping—instead, they’re demanding it evolve. Their frustrations with long lines, crowded spaces, and out-of-stock items reflect a deeper need: they want stores to work for them like the digital world does—instant, personalized, and frictionless.
Gen Z has grown up in an age where everything is on demand, and yet, when they walk into stores, they feel stuck in a system that hasn’t caught up. Retailers who can’t adapt risk losing this generation to the more fluid and responsive e-commerce spaces they trust. Gen Z isn’t just a consumer group—they’re a force pushing brick-and-mortar stores to become smarter, faster, and more intuitive.
Vibe Check Approved: Physical Stores Win Gen Z, But Frustrations Persist
Contrary to the belief that this digital-native generation shuns physical stores, 69% of 18-24 year-olds (Gen Z) shop in brick-and-mortar stores weekly. Yet, they’re leaving those stores empty-handed more often than any other group due to the heightened frustrations that hinder their willingness to complete purchases. 66% of Gen Z cited long lines as their biggest pain point, followed closely by crowded aisles (55%) and difficulty finding items (47%).
These issues contribute to 35% of Gen Z shoppers leaving stores empty-handed. As 50% report stock shortages as a major reason for bailing on purchases, it’s clear that retailers need to prioritize addressing these challenges to prevent Gen Z from shifting back to online alternatives.
“As Gen Z continues to shop in physical stores, they bring with them high expectations for convenience, speed, and efficiency,” said Joe Shasteen, Global Manager of Advanced Analytics at RetailNext. “Retailers must optimize every touchpoint, from self-checkout options to on-shelf availability, to keep this critical demographic engaged and coming back.”
AI Solutions: Gen Z’s Shopping Experience, Reinvented
Despite the obstacles, Gen Z is increasingly open to technology-based solutions in stores. A notable 42% of Gen Z shoppers are eager to use self-checkout kiosks or cashier-less checkout, both of which could drastically cut down on wait times and enhance the overall shopping experience. Additionally, 27% of Gen Z shoppers are very interested in AI-powered chatbots for personalized support.
What Drives Gen Z to Tap Their Cards?
Social media remains a major influence on Gen Z shopping habits, with 24% of them making purchases based on social pressure—significantly higher than older generations, where only 4% report the same. Additionally, 23% of Gen Z shoppers are driven by viral trends on platforms such as TikTok and Instagram, underscoring the importance of social media in shaping their in-store decisions.
Impulse buys also reign supreme for this group, with 70% of Gen Z drawn in by limited-time offers and 50% by eye-catching displays or packaging. Retailers that lean into visually striking in-store setups and create a sense of urgency can tap into Gen Z’s spontaneous shopping behaviors.
Methodology
RetailNext’s Retail Vibe Check Report surveyed 1056 consumers via the online platform, Centiment, to better understand modern shopping preferences. Those surveyed were based in the United States and were between the ages of 18-64. This survey was administered from August 21, 2024 – August 23, 2024.
Source: RetailNext
Image Credit: RetailNext
