Cohorts from Gen Z are very price-conscious (89%), and they also prefer to spend their money on experiences vs. material items (62%). For instance, Gen Z spends most of their weekly budget on food (80%), while 48% allot their money towards experiences with friends.
Interactions released “The Next Generation of Retail,” a study of more than 2,000 Americans aged 14-19, known as “Gen Z,” that explores their shopping habits and how they prefer to interact with retailers and brands. With Generation Z currently making up 25 percent of the total U.S. population and possessing a buying power of $44 billion, this multitasking, tech-savvy cohort is about to turn the retail industry on its head.
The Interactions study examines elements relating to the Gen Z shopper, including: shopper profile, in-store vs. online experiences, brand loyalty, technology and social media preferences.
Although Gen Z is one of the most digitally-savvy generations, 64 percent prefer shopping in-store vs. online. Three-quarters of Gen Z respondents also prefer to shop at retailers that provide an engaging in-store experience, which brands and retailers should take into consideration. When it comes to a satisfying in-store experience, the top three components Gen Z looks for are a clean store, friendly and knowledgeable associates and a positive checkout experience.
Generation Z does not have strong brand loyalty, the Interactions study finds. In fact, 81 percent are willing to switch from their favorite brand if they find a similar product at a higher quality. Similarly, 79 percent don’t care if a product is from a national or private brand as long as it’s of good quality. On a positive note for brands, 80 percent are willing to sign up for loyalty cards in exchange for deals/discounts.
Even with the uptick in retail cyber breaches, 78 percent of Generation Z trusts that retailers will keep their personal information safe, though, 59 percent avoid shopping at retailers that have been hit by security breaches in the past. In addition, three-quarters of respondents check a store’s app when they’re shopping for special offers before making a final purchase, and 75 percent would rather shop at a retailer that accepts mobile payments over one that doesn’t.
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