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As the retail landscape evolves, forward-thinking brands are shifting their strategies to meet the expectations of the next generation of spenders. Gen Z and Gen Alpha may be young, but their influence on purchasing behavior is already reshaping how brands think about store design, product discovery, and customer engagement.
From tech-enhanced shopping experiences to playful, immersive environments, brands invest in long-term loyalty by reaching these consumers early and meaningfully. The following examples showcase how leading retailers adapt to this demographic shift through innovation, personalization, and a deep understanding of youth culture.
Zoomers and Alphas Are Leading a Storefront Revival
From Sephora embracing its status as a Gen Alpha “playground” to Coach’s Gen Z-focused store concept, retailers are leaning into youth-driven spaces. Brands are eager to understand their shopper demographics, particularly the youngest customers, as they represent the future of spending. Although the digital-first generation has just started their teenage years, nearly 75% of them are already influencing how brands present themselves, according to Holden Bale from Merkle.
On the other hand, Merkle reports that 81% of Zoomers prefer browsing in person, a trend that is likely to continue. After the Shoptalk Spring conference, companies are focusing on enhancing young consumers’ purchasing experience.
How Sephora Captures the Attention of Tech-Savvy Shoppers
In the era of Sephora kids, the beauty retailer recognizes its appeal to young, tech-savvy shoppers.
According to Sephora’s vice president of marketing partnerships, Celessa Baker, “It’s all about play,”. People enjoy touching and experiencing products while often using their phones to check ratings, reviews, and influencer content. Leaning into this, Sephora hosts events to educate buyers about products with assistance from store associates.
For Gen Z and Gen Alpha, Sephora is a “playground.” Baker noted, “I used to spend time at the mall, and my daughter prefers it too. Sephora has become a popular venue where we focus on discovery and creating a friendly atmosphere to guide purchases.”
Foot Locker’s Kid-Centered Store Redesign
At Foot Locker, reaching younger consumers involves a dual strategy to reach these “kidsfluencers”. Global Chief Customer Officer, Kim Waldmann, noted that this is a generation of digital natives. Born into a world of advanced technology, this shapes their preferences before even visiting any stores. Consequently, Foot Locker is redesigning Kids Foot Locker stores to enhance their independence and personalized shopping experience.
Focus remains on the key audience—while still catering to parents who make the purchases.
President Frank Bracken emphasized that the retailer considers parents, too, and provides activity tables for kids to keep them entertained while browsing. A tech-driven sizing system will track kids’ sizes and growth over time. Store employees are trained to cater to the specific needs of their locale, whether in places like Aventura Mall or urban areas like Philadelphia, ensuring they understand the demographic nuances in their customer base.
Toys R Us’s Strategy to Win Back Youth
After falling into bankruptcy in 2017, Toys R Us is strategizing a way to reconnect with youth by returning to the market with entertainment, in-store events, and celebrating Geoffrey the Giraffe’s birthday. Geoffrey, who is always 9 and a half, has 1.1 million followers on TikTok and celebrates October 17, turning it into ‘an international holiday.’
Nostalgia runs deep at events like Comic-Con with adults, and Geoffrey’s popularity is just as strong. WHP Global CMO Kim Miller said that sentimental value is one major reason brand partners like Mattel feel attracted to the brand. Besides these celebrations, Toys R Us also has a long tradition of fun events for Father’s Day, Mother’s Day, and Valentine’s Day.
To engage adults and children, Toys R Us is collaborating with entertainment franchises like the Golden Girls and planning themed in-store activities. This includes special play days with local DJs and various playful themes. Miller emphasized the importance of these interactions in making retail stand out amidst online shopping.
From Classic to Expressive: Coach’s Gen Z Makeover
According to Giovanni Zaccariello, Senior Vice President of global visual experience, Coach has recently shifted its positioning. It went from being seen as “their mother’s brand” to embracing “expressive luxury” to appeal to U.S. Gen Z.
Coach revamped its store engagement to connect better with these digital natives, focusing on experiential commerce and tailored locations like Coach Play, which adjusts to local consumer preferences. Zaccariello highlighted that these locations serve as experimental grounds, with findings influencing global strategies.
Product personalization is also key, allowing customers to temporarily customize their Tabby handbags with various accessories. Zaccariello noted that even the store design targets Gen Z, with success measured by visitor counts and time spent in-store rather than just purchases. “We won’t initiate a design brief without key performance indicators,” he emphasized.
American Girl Brings Nostalgia and Play to New Generations
American Girl demonstrates how a toy retailer can market more than just dolls. Since opening its first store in 1998, it has offered experiences such as nail painting, ear piercing, and hair styling for children and their dolls, along with a café where they can enjoy meals together.
These services have become so popular that customers must book appointments in advance. Jamie Cygielman, general manager and president, highlighted the importance of creating a venue that celebrates girlhood and noted that both Gen Z and millennials often revisit the stores for nostalgia.
Cygielman pointed out the enduring appeal of original dolls like Samantha, which many people pass down through generations. To honor the brand’s legacy, American Girl focuses on unique storytelling while adapting to engage today’s children through new narratives and technologies.
Their tactic includes transitioning from print books to a YouTube series and offering a build-your-own-doll program with numerous combinations. The in-store “style guide” allows kids to choose a doll and customize its look. At the end of the journey, they can create a backstory and take a selfie with their new doll.
Conclusion
The new generation of consumers expects more than just products—they seek experiences, authenticity, and personal relevance. Retailers who understand this—and act on it—are setting themselves up for sustained success in a competitive market. Whether through in-store entertainment, digital integration, or creative brand storytelling, the brands connecting most effectively with Gen Z and Gen Alpha treat younger shoppers as current stakeholders. For B2B decision-makers, the takeaway is clear: investing in youth-centric commercial strategies isn’t a trend—it’s a long-term growth imperative.
