By the time the millennials are done with this decade, Generation Z may not have anything left to consume.
According to the latest research conducted by IBM and the National Retail Federation, it is the most digitally native generation that prefers shopping in brick-and-mortar stores. General Z, those who were born between the 1990’s to 2010’s shop more frequently in physical stores than they do online — a whopping 98 per cent of them.
This could be perceived as the generation not yet holding the power (credit/debit card) to make purchases online; however, it’s really as simple as as them preferring a more hands-on and personal experience.
CEO and president Matthew Shay of NRF said that they appreciate the hands-on experience of shopping in a store. “Technology is constantly evolving but some shopping habits remaining the same, retailers need to be agile enough to serve both needs.”
The millennials are without a doubt currently the biggest spending power of this decade. However, online sales growth started to slow and within the next five years, Gen Z will hold the biggest purchasing power with roughly USD44 billion in access income.
Gen Z is also more inclined to favour certain brands for its quality and availability over brand identity. Furthermore, while nearly 75 per cent of Gen Z are smartphone-enabled, they primarily use to chat with friends and family rather than browsing.