Mar 17 2017

Generation Z (or “Gen Z”), the post-millennial peer group, is the most digitally savvy and socially-engaged generation ever. Even more than their millennial “elders”, their online and offline lives are completely integrated, with enhanced digital tools and visual social platforms being the first port of call when engaging with both peers and brands.

Yet despite all the newspaper column inches devoted to the growth of online, research released this week by Accenture reveals that an astonishing 60% of Generation Z shoppers still prefer to purchase in-store, and that although they value the convenience of researching and looking for inspiration online, the ability to engage with the product and the brand in-store before buying simply cannot be replicated.

This demonstrates an even stronger affinity with bricks and mortar than the preceding generation, the millennials. According to The Market Creative’s Future of Marketing’s latest report, 58% of millennials visit a physical store at some point when making a purchase, and, nearly one third prefer to shop mainly in-store. Hammerson’s own research earlier this year showed that millennials shop more frequently than older generations, with close to two fifths (37.8%) shopping at least once a week in a shopping centre.

Of course, digital is still incredibly important, and retailers need to have a compelling online offer to compete in today’s world; however it is clear that this in isolation is not enough. The physical store has not dimmed in importance since the rise of digital, but has become part of a more complicated shopping journey which incorporates a seamless blend of online and offline. Digital technology is ingrained in every aspect of life for Gen Z, so to try and analyse the difference between shopping on an app or in a store is meaningless.

We also can’t forget that we are fundamentally social creatures, and Gen Z is no different. Savills research earlier this week certainly came to the same conclusion, revealing that just 8% of European retail was conducted online in 2016, demonstrating that the vast majority really are voting with their feet! This is because shopping is not just about buying things. It’s about the experience. Teenagers want to look around the shops, grab some food, socialise and maybe catch a film along the way. Our research showed that dining and leisure options play a huge part in younger consumers’ choice of shopping destination, experiences that are impossible to replicate online. .

Undeniably the digital revolution has disrupted the industry, but what has become apparent is that we are not likely to become unsociable, inactive beings anytime soon. The younger generations have never known a life without technology, but they still desire experiences, want to spend time with friends and prefer to browse, touch and try products before they buy. Gen Z will continue to visit high streets and shopping centres, having probably checked for offers online first, before Snapchatting anything they try on and Instagramming their lunch – a seamless blend of digital and physical.