RSS feed Get our RSS feed

News by Topic

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%).


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

Subscribe to BizReport



Copyright © 1999- BizReport. All rights reserved.
Republication or redistribution of BizReport content is expressly prohibited without the prior written consent.
BizReport shall not be liable for any errors in the content, or for any actions taken in reliance thereon.