Dive Brief:
- Gen Z is still showing a preference for shopping in person despite its digital upbringing, research from payments platform Adyen shows. The company surveyed over 2,000 U.S. consumers across generations.
- Almost three-quarters of Gen Z shop in-person at least once a week and the majority consider it an experience, according to Adyen. By comparison, just over one-third of baby boomers consider in-person shopping an experience.
- Shoppers across all generations report spending more in-store compared to online, the survey found.
Dive Insight:
Gen Z wants to make the most of its physical shopping experience as lines between online and in-store shopping blur. Adyen's research found Gen Z favors physical stores for their in-store discounts, the ability to own items faster and location convenience. They also see in-person shopping as a source of enjoyment.
“Gen Z demands shopping experiences that reflect their digital-first mindset — effortless, flexible, and deeply integrated into their daily routines,” Davi Strazza, Adyen’s North America president, said in a statement. “Retailers that align with these expectations will define the next era of commerce.”
To fully enjoy in-person shopping, Gen Z has a standard for their experience. When in stores, 3 in 5 Gen Z respondents will abandon a purchase if the checkout line is long. If their preferred payment method isn’t available, the survey found more than one-quarter of respondents will leave their items behind.
Adyen found that Gen Z prefers to make beauty and luxury purchases in person. By category, 31% of Gen Z prefers to buy beauty in person. For luxury goods, four times as many Gen Z shoppers prefer to make these purchases in-store compared to baby boomers.
Some beauty retailers are finding success with customers by readjusting their focus to shopper experience and loyalty. Ulta Beauty — a beauty retailer consistently favored by young folk, per Piper Sandler’s Taking Stock with Teens survey — is well aware of this connection.
At the National Retail Federation’s Big Show earlier this month, Ulta said its loyalty program is key to the customer experience. Josh Friedman, vice president of digital products at Ulta Beauty, said that 95% of its sales go through the program.
In efforts to produce a more personalized experience, the beauty company explained its plans of collecting loyalty program data to enhance long-term relationships with the customer. This can include information on how shoppers use products in their daily routines and recommending commonly repurchased items specific to the consumer.
