If you don’t understand what your customers want, how can you serve them and stay competitive? We are living in an era with four generations in the workforce and as consumer forces in the marketplace. Make that five generational shopping habits if you add in the Alphas who are also shopping in retail stores.
Retailers must remain informed about, agile and responsive to changing consumer preferences. By understanding the unique needs of each generation—from Gen Z’s pragmatism to boomers’ deal-seeking preferences, retailers can craft strategies that resonate with their target audiences.
For this report, let’s focus on grocery shopping although we know that generational behaviors extend more broadly to all retail experiences. YouGov’s latest supermarket ranking poll offers a fascinating glimpse into how four different generations (excluding the Alphas) approach grocery shopping. The findings are averages but there are wide preference variations within each 20 to 30-year generational life stage span.
From Gen Z’s disinterest in the entire process to boomers’ relentless hunt for deals, the data reveals distinct generational trends that food retailers need to consider when crafting their strategies. On a macro level, Walmart led the rankings by a wide margin with 63.3 percent of U.S. adults saying they would consider the brand for their next shopping trip followed by Target (42.5 percent) and ALDI (32.8 percent). But what is really revealing is why people shop — the differences in shopping attitudes and habits across generations. As we said, these preferences extend across many other retail sectors.
Gen Z: Pragmatic, Disengaged Shoppers
Gen Z, the youngest cohort of shoppers, has a clear message for food retailers: grocery shopping is boring. According to YouGov, 40.5 percent of Gen Z respondents find the task mundane, and 59.9 percent say they only buy what they need when visiting the supermarket. This generation, raised in the age of instant gratification and digital convenience, views grocery shopping as a chore rather than an experience.
According to the Survey Monkey survey, Gen Z social media and shopping habits, this generation seeks out product information and inspiration from a wide variety of sources: 51 percent look to shopping websites, 47 percent to social media, 45 percent from friends and family and 44 percent went to brick-and-mortar retail stores (more than any other generation). A 2023 UK survey from Attest found that while Gen Z is the most digitally native generation with 57 percent saying they prefer to shop for clothing, shoes and accessories online, 51 percent are more likely to buy food and drink in physical stores.
Most critical is that these younger shoppers do not trust the food industry. For food retailers, this presents both a challenge and an opportunity. Gen Z’s preference for efficiency and minimalism suggests that they value streamlined, no-frills shopping experiences. Retailers can appeal to Gen Z by enhancing the ease of their ecommerce platforms, offering quick in-store pickup or delivery, and ensuring that stores are easy to navigate.
And don’t forget to make it fun. This is a generation of gamers. Using gamification and gratification to enhance their shopping experience—through the accumulation of points in loyalty programs, games on interactive apps, AR experiences and animated leaderboards—could help make grocery shopping more engaging for this disengaged group. Walmart’s Adaptive Retail fueled by its proprietary platforms is a great example.
Another key takeaway is Gen Z’s focus on necessity over impulse. Nearly 60 percent of Gen Z shoppers buy only what they need, so retailers may need to rethink their promotional strategies. Instead of promoting impulse buys, they could emphasize value, sustainability, and convenience to win over this pragmatic generation. Remember, Gen Z is leading the No Buy movement as detailed by fellow TRR columnist Pam Danziger.
Millennials: The Planners Who Shop for Little, Often
Millennials are the bridge between traditional and modern shopping habits and exhibit a strong preference for planning and frequency. YouGov’s data shows that 61.9 percent of millennials like to plan their weekly shopping, and 51.1 percent prefer shopping “little and often” rather than making fewer, larger trips, typical of the way most people shop.
This behavior reflects millennials’ desire for control and balance in their lives. By planning their shopping, they can manage their budgets more effectively and reduce food waste The preference for smaller, more frequent shopping trips also aligns with their tendency to prioritize fresh, healthy foods over bulk purchases of processed food items. And we know that for urban millennials, storage is often a problem.
For retailers, this means that digitally savvy millennials are likely to respond well to smart, personalized tools that help them plan and organize their shopping. Features like digital shopping lists, customized meal planning apps, and personalized recommendations (both online and in-store) enhance their experiences and drive bigger basket sizes. Optics are important, and retailers should ensure that their stores feature prominent displays of attractive, well-stocked fresh produce and other healthy options, as these are key drivers for millennial shoppers.
The “little and often” approach to food shopping has implications for store layouts and staffing. Stores designed for quick, efficient trips, with clearly marked sections and minimal congestion play into the millennial mindset. Smaller stores like Trader Joe’s, ALDI and Whole Foods’ Market Daily Shop format in New York City are preferred by these shoppers.
Gen X: Price-Conscious Impulse Buyers
Sandwich generation Gen X shoppers present an interesting paradox. On one hand, they are the most price-conscious generation, with 78 percent saying they look for the lowest prices when shopping. On the other hand, 63.4 percent admit they end up buying things they weren’t intending to purchase. This combination of frugality and impulsiveness makes Gen X a unique and potentially valuable demographic for food retailers.
The emphasis on low prices suggests that Gen X shoppers are highly responsive to discounts, promotions, and loyalty programs. Highlighting value-driven messaging and ensuring that their pricing strategies are competitive are effective tactics for Gen X shoppers. However, the high rate of impulse purchases indicates that in-store marketing and product placement could play a significant role in influencing them. To capitalize on this behavior, retailers could focus on creating more enticing displays and offering samples or limited-time deals.
Baby Boomers: The Deal-Seeking Traditionalists
Boomers, the oldest generation surveyed by YouGov, exhibit shopping behaviors that reflect their life stage and values. Only 10.7 percent of boomers make Saturday their regular shopping day, suggesting that they prefer to avoid the weekend crowds. Boomers’ average age is 70 years old, and most are retired or working less, giving them more free time to shop on weekdays. They are the most likely to be on the lookout for special offers, with 84.7 percent saying they actively seek out deals. Many boomers are on fixed incomes and need to stretch the most out of their income and savings. What’s more, they are planning for a longer lifespan according to the Social Security Actuarial Life Table.
Food retailers can appeal to boomers by emphasizing discounts, loyalty rewards, and bulk purchase options. Retailers could consider offering senior discounts during off-peak hours or providing shuttle services to make shopping trips easier for older customers. Clear signage is important as JAMA Ophthalmology reports that the number of people with visual impairment or blindness in the U.S. is nearly 27 million and as the population ages is more susceptible to these conditions. Non-tech-savvy boomers value personal interaction over digital convenience and a trained, friendly and helpful staff enhances the in-store experience.
The Future of Grocery Retail
YouGov’s findings underscore the importance of tailoring retail strategies to meet the unique needs and preferences of each generation. As mentioned, retailers are serving four (five with Alphas) generations of shoppers at the same time. Retailers must remain informed about, agile and responsive to changing consumer preferences. By understanding the unique needs of each generation—from Gen Z’s pragmatism to boomers’ deal-seeking preferences — retailers can craft strategies that resonate with their target audiences.
The key to success lies in striking a balance between tradition and innovation. While some shoppers value the familiarity of in-store experiences, others are drawn to the convenience of digital solutions. Food retailers that create an in-store and online shopping environment that is personalized to each generation are likely to do well. Yes, that adds an extra burden to each food retailer – but you don’t have a choice if you want to keep shoppers coming back to your store.
