Gen Z Has Great Expectations: They Want You to Care About Them

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“Omnichannel” and “seamless” are outcomes of smart technology. Yet investing in tech alone doesn’t serve next gen shoppers––Gen Z still spends as much on clothing in physical stores as they do online. And both Gen Z and millennials spend more in physical stores overall than online. Next gens are just focused on different KPIs when they make the trek to a brick-and-mortar destination: They want a good reason to visit a physical store.

Next gens came of age during pandemic lockdowns and they’re highly neurodiverse. If there’s not a specific reason for them to visit a physical store, like guidance from experts, brand storytelling, or free services correlated to inventory (tailoring, makeup application, tarot readings), they’ll simply order online.

Merchandising 101

“Retail merchandising” typically refers to curating in store inventory in ways that motivate consumers to buy. But retail merchandising for next gen consumers requires removing the irrelevant lens of “convenience as incentive” from in-store shopping. Instead, retailers need to look at their physical stores as “ever-evolving destinations” that offer experiential value with every visit.

Consumers go online for value…they go to physical stores to add value to their lives. Let’s look at what next gens expect from in-store shopping, and the merchandising strategies that are winning their loyalty.

Fortifying Wellness

Next gens came of age during pandemic lockdowns and they’re highly neurodiverse. If there’s not a specific reason for them to visit a physical store, like guidance from experts, brand storytelling, or free services correlated to inventory (tailoring, makeup application, tarot readings), they’ll simply order online.

It’s no secret that Generation Z is hyper-focused on their mental health. In challenging economies, retailers are often tempted to revert to the old “get them in store and then hard sell ‘em” mentality. But beware: Hard selling is the antithesis of what Gen Z wants to experience in physical stores; this behavior doesn’t enhance the mental health of anyone involved. While a big one-off sale may result, it certainly won’t inspire next gens to come back or bring their friends to stores. And, frankly, it doesn’t get anymore “cringe” than that.

A recent study by Ayden found that almost three-quarters of Gen Z shop in person at least once a week. Most Gen Zers shop in-store for the experience, rather than to buy necessities––they can go online for those. They simply want to feel better leaving a store than they did when they arrived. Fortifying next gen optimism is offering an in-store environment designed to make them feel good and look great. In a recent study, 42 percent of Gen Z consumers said in-store displays that inspire them are “highly important,” while 36 percent favored “the right floor plan” and “overall flow.”

Merchandising can help create an ambience that lifts moods; clutter is the arch enemy. Strategic merchandise, uncluttered environments, smooth and spacious floor plans, ambient lighting, and soothing or on-theme sounds create a store that young customers won’t want to leave. Retailers don’t need sprawling grounds to create a shoppable environment. Look at Ikea’s smaller format showroom concept stores, for example. Some of the stores operate as pickup points for the digital experience––which feels curated and spacious, never cramped, regardless of the limited square footage.  Or Nike’s creative custom shoe design floors, which can also be accessed on the brand’s app and website.

Curation and Guidance

Gen Z still prefers to make beauty and luxury purchases in person. This makes sense, considering that in-store product testing is critical for beauty products, and luxury items are defined by their rich brand histories and personal service. Another thing beauty and luxury have in common? Customers shop for them in-store for the curation, as well as the product guidance and storytelling. In-store experiences are part of the value proposition of both categories, whether it’s getting personalized guidance from the skincare aficionado at an Ulta counter or the brand storytelling at the Gucci flagship in SoHo.

Gen Z are champions of informed consent, both in romantic relationships and in interfacing with store associates. But asking if a customer needs help before inflicting an uninvited verbal torrent on them is still a skill that most store associates need to be trained to provide. The ambition for sales quotas and/or commissions can get in the way of being attuned to the customer.

Make or Break at Checkout

Gen Z sees themselves as upholders of common sense. They live in a fractured world. They were directly impacted by the pandemic during their formative years, they are experiencing more drastic global warming effects than any other generation, and they’re more tech savvy than every other generation to date. As such, Gen Z is fragile and judgmental when it comes to service. 

If a retailer is sorely understaffed, swamped, or disorganized, Gen Z will simply leave without completing their intended purchases. In fact, over half (60 percent) of Gen Z will abandon their in-store purchases if checkout lines are too long. Nimble, flexible staffing during peak hours can help retailers capture sales from younger customers during high traffic times. Mobile POS stations can also be helpful in stores where a limited number of cash wraps is an issue to enable associates to process card transactions anywhere in the store.

The Shopper Experience

To win over next gens, retailers need to lean into what really matters: experience, intention, and respect. Gen Z wants an environment that feels good, flows well, and reflects their values. So, retailers need to shift from pushing product to curating experience. That means offering real guidance, not just sales pitches. It also means understanding that today’s shoppers are walking in with high expectations—and even higher awareness.

For next gens to drive, park, and hoof it into a physical store, it needs to be an experience worthy of the effort. Cluttered shelves, stressed retail employees, and aggressive sales tactics are not attractions. Next gens observe the stress level of retail employees. They’re conscious of how much thought retailers put into their space. But for the retailers willing to listen, adapt, and show up with intention? There’s an opportunity to build real, lasting loyalty.

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