Of all people, you may assume that Gen Z is an online shopping fanatic since they were raised with smartphones and surrounded by a social bubble, but you are wrong. Instead, Gen Z prefers in-person shopping over online shopping.

Retailers are trying to understand the factors behind Gen Z’s shopping preferences because it offers valuable insights for targeting this influential demographic.

Key Takeaways

• Gen Z often opts for in-person shopping because they can obtain items quickly and enjoy interactions with friends, family, and store associates.
• They value the opportunity to see, touch, and try products, especially important for beauty and luxury items, making physical stores a preferred option.
• Gen Z seeks fast, efficient transactions that eliminate waiting times and reduce long checkout lines, leading to a more direct purchase process.
• While Generation Z shops in person, they expect digital conveniences like mobile payment options, in-store discounts, and real-time inventory checks to enhance their experience.

Gen Z Prefers In-Person Shopping for Fast Purchases and Real Interactions

Despite their upbringing in a digital world, Gen Z values the tangible experiences that physical stores provide. A study by Adyen revealed that nearly 75% of Gen Z consumers shop in-store at least once a week, viewing it as a source of enjoyment and a meaningful experience. This contrasts with just over a third of baby boomers who share this sentiment.

Several factors contribute to this preference:

• Immediate Gratification: Unlike online shopping, in-person purchases allow Gen Z consumers to acquire items instantly without waiting for delivery.
• Sensory Engagement: Physical stores offer the opportunity to see, touch, and try products, which is particularly important for categories like beauty and luxury goods. Adyen’s research found that 31% of Gen Z prefer to buy beauty products in person, and they are four times more likely to purchase luxury items in-store than baby boomers.
• Social Interaction: Shopping in physical stores provides a social experience, allowing Gen Z to engage with friends, family, and store associates, enhancing their overall shopping journey.

Gen Z’s preference for in-person shopping is also driven by efficiency. Accustomed to having information and services at their fingertips, they often choose the most seamless path to purchase. While other generations might cite shipping costs or the need to assess products as reasons for shopping in-store physically, Gen Z focuses on what is most efficient for a given purchase. They value the ability to obtain items quickly and appreciate the convenience of immediate ownership.

While Gen Z appreciates the physical shopping experience, they expect it to be integrated with digital conveniences. Retailers that blend online and offline experiences tend to resonate more with this demographic. For instance, offering in-store discounts, providing multiple payment options, and ensuring a smooth checkout process are crucial. Adyen’s research indicates that three in five Gen Z shoppers will abandon a purchase if the checkout line is long, and over a quarter will leave items behind if their preferred payment method isn’t available.

In a statement, Davi Strazza, the North American president for Adyen, emphasized that Generation Z prioritizes a seamless, adaptable, and intricately woven shopping experience into their digital-centric lifestyles. Retailers who cater to these preferences will shape the future landscape of commerce.

Several brands have effectively tapped into Gen Z’s preference for in-person shopping by creating unique and engaging store experiences. For example, Coach, a luxury brand established in New York, has experienced a resurgence among Gen Z consumers by adopting ‘expressive luxury’ and focusing on storytelling, design, and merchandising that resonate with younger shoppers.

The brand recently climbed to the fifth spot on the Lyst Index, rising ten positions from the previous quarter. This marks Coach’s debut in the top ten. Quarter-over-quarter demand increased by 65%, and there was a 332% boost in demand compared to last year.

Charity Super.Mkt is another great example. This UK-based pop-up shop has reinvented the charity shop concept to appeal to Gen Z by hosting events with live DJs and offering creatively repurposed clothing. In response to growing interest in purchasing preloved items, the company plans to expand its presence significantly by opening twelve new stores next year in locations including Leeds, Edinburgh, Sheffield, and the Canary Wharf area in London.

Since its inception in January 2023 at a former Topshop location in London’s Brent Cross shopping center, the initiative has united 55 local and national UK charities such as Oxfam, Barnardo’s, Age UK, RSPCA, and Traid. Operating out of approximately 16 stores, it has generated sales of £3 million, with notable expansions into spaces like the former Fenwick store on London’s Bond Street.

The Influence of Social Media Trends and Sustainability Considerations

Social media plays a significant role in shaping Gen Z’s shopping habits. Platforms like TikTok and Instagram are not only sources of entertainment but also avenues for discovering new products and trends. However, despite the ease of online shopping, many Gen Z consumers prefer to purchase items in-store after finding them online.

Gen Z is also known for its strong stance on sustainability and ethical consumption. They are more likely to support brands that demonstrate environmental responsibility and ethical practices. Physical stores allow retailers to showcase their commitment to these values through sustainable store designs, eco-friendly products, and transparent supply chain information. This transparency can build trust and loyalty among Gen Z consumers.

However, to capitalize on Gen Z’s preference for in-person shopping, retailers must address several problems:

• Seamless Integration of Digital and Physical Channels: Retailers should ensure that their online and offline channels are interconnected. Features like buy-online-pickup-in-store (BOPIS), real-time inventory checks, and mobile payment options can enhance the shopping experience.
• Personalized Experiences: Gen Z values personalization. Utilizing data to offer tailored recommendations, personalized promotions, and customized in-store experiences can attract this demographic.
• Authenticity and Transparency: Brands need to be genuine in their messaging and transparent in their operations. Gen Z consumers are quick to identify inauthenticity and are likely to disengage from brands that do not align with their values.
• Community Engagement: Creating community within the store can enhance the shopping experience. Hosting events, workshops, or social gatherings can make the store a destination beyond just a place to purchase goods.

Conclusion

Gen Z values in-person shopping for its quick transactions and real-life interactions. They appreciate the chance to see, feel, and test products before buying while still expecting modern features like mobile payments and up-to-date inventory information.

Retailers who focus on efficient store experiences that combine fast service with digital support are likely to meet the needs of this influential group.