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Generation Z, also known as Gen Z or zoomers, comes after millennials. Their birth time varies according to different sources, but most people agree they are the ones born from the mid-1990s to the early 2010s. Gen Zers have grown up in a time of rapid technological change, making their actions, likes, and needs as buyers very different from those of their predecessors.
Generally digital savvy, Gen Zers have always enjoyed smartphones, social media platforms, and online shopping. Zoomers, as they are also known, often mix online and offline resources in different aspects of their lives, like shopping. When it comes to their purchases, they tend to value convenience, speed, and accessibility, typically relying on shopping apps, digital wallets, and what influencers suggest they buy. However, Gen Z buyers tend to be more careful than their predecessors with their money, constantly looking for deals and special offers.
Moreover, Gen Z is changing retail with their need for green, fair, and ethical businesses. Many pick brands that match their own values, causing retailers to change their policies on green products, eco packaging, and fair trade. As the industry is changing, B2B retailers must keep up with these shifts to stay ahead in a market now shaped by Gen Zers’ needs. This is more than a temporary trend, it is a big shift that will probably shape the future of retail for a long time.
Digital savvy consumers
According to Statista, Gen Zers grew up in a digital world. They know how digital tools work and they like to buy their products online. They can move easily between different online shopping platforms and new ways to pay. Furthermore, they mostly use their phones to shop, so retailers have optimized their e-commerce websites for smartphones and other devices.
Online shopping is important, but zoomers also like to shop in stores. They want to see, feel, and try on things before they buy them. However, they tend to discover the products online, and then go to brick-and-mortar stores to test and buy them. Retailers may need to mix online and in-store shopping to fit their needs.
Value-conscious shoppers who sometimes pay more
Even though they like cheaper stores, zoomers will pay more for a good shopping experience. An ICSC survey showed that 48% of Gen Zers would actually pay more for fast delivery when they order online. However, they are more careful on what they spend their money on than their predecessors.
They like discounters best, with stores like T.J. Maxx, Marshalls, Kohl’s, Walmart, and Target being favored by 48% of zoomers. 25% of them also go to Dollar stores, while specialty stores like Best Buy are attracting 24% of their visits. Fast fashion retailers like Zara attract 22% of Gen Zers, and department stores – 21%. Only 13% like thrift stores more, showing they care more about low prices and discounts than sustainability.
Social media are becoming the new malls
Social media shapes what Gen Z buys, with 85% of zoomers saying Instagram and TikTok helped them decide. YouTube is next at 38%, then Facebook at 24%, Snapchat – 17%, Twitter – 14%, and Reddit – 7%.
For many zoomers, scrolling on social media platforms is like walking in a mall. About 49% of Gen Z users discover products and even purchase them on social media platforms every week, while 20% do it every day. Visually appealing platforms like Instagram and TikTok can now provide them with a complete shopping experience, with influencer tips, fun ads, and easy choices being key parts of that experience. Online and brick-and-mortar stores are going with the trend by investing in social media content and ads or adding “buy now” buttons on the pages.
Traditional stores are making a comeback
Though they know a lot about digital tools and platforms, zoomers are not abandoning traditional stores. In fact, 97% said they shop at brick-and-mortar stores too. Traditional stores come with some important advantages for Gen Z:
They can receive their items right away;
They can see, touch, and try on items before buying them;
Brick-and-mortar stores have no shipping costs;
Zoomers can shop and spend time with their friends;
Traditional stores have a better look and feel.
Retailers and mall owners have already noticed Zoomers’ preference for unique or nostalgic in-store experiences and have taken important steps to attract these shoppers. Companies like Simon Property Group have created successful campaigns like “Meet Me @the Mall,” linking to Gen Z’s love for old times and spending quality time with their friends.
Brookfield Properties took a different approach and added mini-golf, better food courts, and art exhibits to attract younger buyers. Kevin McCrain, the company’s CEO, later said zoomers “crave unique experiences that they can share in person and through social media.”
How retail adapts to new economic challenges
While Gen Z buys a lot, both online and in-store, current economic challenges will shape how and what they buy. A recent report showed retail sales went up by 0.2% in February, which is less than the previously estimated figure of 0.6%. The fact that prices are now going up is a worry for shoppers and retailers alike, but trends show people will likely keep buying even if they continue to increase. “The main factor in consumer spending is consumer income, and that’s growing at a good rate and had an impressive leap in January,” Robert Frick, corporate economist at Navy Federal Credit Union, explained.
Retailers will probably fight back by cutting prices, making loyalty plans better, and providing their customers with budget options. Even top brands are now changing their approach to fit the needs of Gen Z buyers, by adopting installment payment options and special discounts to keep their interest.
Final thoughts
Zoomers have different shopping habits compared to their predecessors. Their digital skills, preference for discounters, social media reliance, and love for fun and nostalgic shopping will undoubtedly reshape both online and traditional retail. With new economic challenges now on the rise, retailers must adapt their strategies to keep Gen Zers loyal. The future of retail will be kind to those who easily mix convenience, accessibility, and fun shopping to match Gen Z’s new needs.
