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BizReport : Ecommerce : July 29, 2016


Gen Z's in-store expectations - the next challenge for retailers

The next five years will see a widening gap between shoppers expectations and the reality of what a store can deliver thanks to the coming of age of Generation Z, according to a new report from Vodat International.

by Helen Leggatt

Disappointing in-store experiences could cost retailers dear as Generation Z's spending power becomes even more valuable to retailers in the coming years. Vodat International's research found that the average 12-18 year old in the UK expects to earn £36,509 a year by the time they turn 25 and for a piece of that pie retailers need to up their in-store game.

While being true digital natives, more than a third (38%) of Gen Z said they still intend to make most of their purchases in-store over the next five years. For more than two-thirds, being able to test and see a physical product is the top reason for continuing to shop offline, followed by the immediacy of the purchase (43%) and social interaction (42%).

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Thirty-one percent said they will continue to shop in-store to save on delivery costs and for 27% physical stores enable them to try out new styles and ideas.

However, Gen Z will have expectations that will need to be met to continue to motivate store visits. Such technologies include free Wifi (48%), self check-outs (38%), 'scan and shop' apps which link to mobile payments (18%), AR fitting rooms (18%) and personalized changing rooms that shoppers can customize with their own lighting, temperature and music (16%).

According to Paul Leybourne, head of sales at Vodat International, "Generation Z will undoubtedly prove the biggest disrupting force to physical retail over the next five years. The biggest danger to retailers is that they are completely unknown; their habits do not reflect those of their predecessors, the Millennials."

"The challenge is now on for retailers to bring digital capabilities - and critically the network infrastructure that supports them - into the store in order to deliver to those omnichannel expectations," he added.



Tags: Generation Z, physical store, retail, trends








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