News • 11.07.2019

"Digital natives" value brick and mortar stores …

… more than their parents or grandparents

Woman looking at clothing in a store and taking a picture with her smartphone;...
Source: PRNewsfoto/Oracle NetSuite

Despite clear differences in expectations among shoppers of different generations, almost half of retailers (44 percent) have made no progress in tailoring the in-store shopping experience according to a recent study conducted by Oracle NetSuite, Wakefield Research and The Retail Doctor. The global study of 1,200 consumers and 400 retail executives across the U.S., U.K. and Australia dispelled stereotypes around generations and found big differences in generational expectations across baby boomers, Gen X, millennials and Gen Z.

"Retailers have fallen behind in offering in-store experiences that balance personalization and customer service but there's an opportunity to take the reins back,” said Bob Phibbs, CEO, The Retail Doctor. “The expectation from consumers is clear and it's up to retailers to offer engaging and custom experiences that will cater to shoppers across a diverse group of generations."

Retailers struggle to keep stride with generational shoppers

The in-store shopping experience remains an important part of the retail environment for all generations, but the progress retailers are making to improve the in-store experience is being viewed differently by different generations.

  • Despite the stereotypes of "digital natives", Gen Z and millennials (43 percent) are most likely to do more in-store shopping this year followed by Gen X (29 percent) and baby boomers (13 percent).
  • Gen Z and millennials (57 percent) had the most positive view of the current retail environment feeling it was more inviting, followed by Gen X (40 percent). Baby boomers (27 percent) were more likely to find the current retail environment less inviting than consumers overall.
  • Gen Z valued in-store interaction the least with 42 percent feeling more annoyed from increased interaction with retail associates. In contrast, millennials (56 percent), Gen X (44 percent) and baby boomer (43 percent) generations all noted they would feel more welcomed by more in-store interactions.

Retailers view emerging technologies through rose-colored glasses

While more than three quarters of retail executives (79 percent) believe having AI and VR in stores will increase sales, the study found that these technologies are not yet widely accepted by any generation.

  • Overall, only 14 percent of consumers believe that emerging technologies like AI and VR will have a significant impact on their purchase decisions.
  • Emerging tech in retail stores is most attractive to millennials (50 percent) followed by Gen Z (38 percent), Gen X (35 percent) and baby boomers (20 percent).
  • Perceptions of VR varied widely across different generations. Fifty-eight percent of Gen Z said VR would have some influence on their purchase decisions, while 59 percent of baby boomers said VR would have no influence on their purchase decision.

Insta-famous brands reach Gen Z and millennial consumers, but not as much as retailers think

While almost all retail executives (98 percent) think that engaging customers on social media is important to building stronger relationships with them, the study found a big disconnect with consumers across all generations.

  • Overall, only 12 percent of consumers think their engagement with brands on social media has a significant impact on the way they think or feel about a brand.
  • Among those who engage with brands on social media, Gen Z (38 percent) consumers are much more likely than other generations to engage with retailers on social to get to know the brand compared to millennials (25 percent) and baby boomers (21 percent).
  • Gen Z (65 percent) consumers and millennials (63 percent) believe their engagement with brands on social media platforms have an impact on their relationship with brands.
  • More than half of baby boomers (53 percent) and 29 percent of Gen X consumers do not engage with brands on social media.

"After all the talk about brick and mortar stores being dead, it's interesting to see that 'digital natives' are more likely to increase their shopping in physical stores this year than any other generation," said Greg Zakowicz, senior commerce marketing analyst, Oracle NetSuite.

Source: Oracle NetSuite

related articles:

popular articles:

Thumbnail-Photo: VKF Renzel takes over exclusive distribution of EasyCubes...
23.10.2019   #product presentation #goods illumination

VKF Renzel takes over exclusive distribution of EasyCubes

The sales promotion specialist VKF Renzel took over the sole distribution of the
EasyCubes product presentation system for the DACH region with effect from
23.09.2019

After VKF Renzel was already involved in the successful product launch, this is now the consistent further development. ...

Thumbnail-Photo: 75 % of millennials abandon in-store purchases...
14.11.2019   #customer satisfaction #brick and mortar retail

75 % of millennials abandon in-store purchases

Zebra study: out-of-stocks drive shoppers to online

Zebra Technologies Corporation today revealed the results of its 12th annual Global Shopper Study, the industry’s only market tracker that analyzes the attitudinal behavior of shoppers, retail associates and retail executives and examines the ...

Thumbnail-Photo: SPAR continues European expansion with entry into Kosovo...
02.08.2019   #brick and mortar retail #business developement

SPAR continues European expansion with entry into Kosovo

6 store openings in 2019 and 7 more planned for 2020

The voluntary food retail organization SPAR International announces the brand’s entry into the Kosovan retail market, the 27th European market, in line with their expansion strategy.SPAR Kosovo is a new entity set up by a consortium of ...

Thumbnail-Photo: Vast majority of consumers plan to return holiday gifts...
03.10.2019   #pos marketing #personalization

Vast majority of consumers plan to return holiday gifts

“Retailers need to seize the moment."

During the upcoming holiday season 77 percent of consumers surveyed said they plan to return a portion of their gifts, with nearly 20 percent expecting to return more than half of their presents (sorry grandma!). This is both a blessing and a curse ...

Thumbnail-Photo: Get your business ready for E-commerce!
30.09.2019   #e-commerce #customer satisfaction

Get your business ready for E-commerce!

E-commerce Berlin Expo 2020 starts on the 13th of February 2020

The E-commerce Berlin Expo 2019 gathered more than 55000 visitors, 150 exhibitors and 45+ speakers taking part in the annual fair. The numbers speak for themselves - EBE has become one of the most important e-commerce events in Europe. However, ...

Thumbnail-Photo: 91% of SMBs think customer reviews are critical...
25.07.2019   #customer satisfaction #customer relationship management

91% of SMBs think customer reviews are critical

Survey about online customer reviews on platforms

Uberall, Inc., a location marketing solution for businesses, released new data on how small- and medium-sized businesses feel about online customer reviews across platforms like Yelp, TripAdvisor, Facebook, Instagram, Google and more. For the ...

Thumbnail-Photo: Mobile shoe closet on the road
27.09.2019   #sales promotion #fashion

Mobile shoe closet on the road

Luxury brand Tamara Mellon with first-ever traveling shoe store

Tamara Mellon, direct-to-consumer luxury brand, is taking their innovative retail concept on the road with the launch of the mobile TM Closet — the first-ever traveling shoe closet.Kicking off in Boston, the TM Closet will be located in ...

Thumbnail-Photo: Distract or divert!
10.09.2019   #customer satisfaction #customer relationship management

Distract or divert!

How to engage customers at the checkout

Retailers and retail designers spend a considerable amount of time discussing and juggling a crucial aspect of the customer experience at the point of purchase: the checkout.To be fair, it’s not easy to turn the moment when customers have to ...

Thumbnail-Photo: British consumer behavior: ethical and Instagrammable...
06.08.2019   #marketing research #customer analysis

British consumer behavior: ethical and Instagrammable

Report tracking spending across major consumer markets

As Brexit rumbles on, British consumers continue to spend on brands and businesses that successfully tap into the Holy Trinity of current consumer behavior: the ‘experience economy’, the booming health and wellness movement, and the ...

Thumbnail-Photo: A pearl among commodities: encouraging impulse buys...
11.09.2019   #pos marketing #customer analysis

A pearl among commodities: encouraging impulse buys

How to make the most of wait times

It’s wonderful if customers come to retail stores to buy things. It’s fantastic if they buy more than they planned to purchase. This offers many opportunities, especially for brick and mortar retailers as surveys show: customers are more ...

Supplier

loadbee GmbH
loadbee GmbH
Nikolaus-Otto-Straße 13
70771 Leinfelden-Echterdingen
HappyOrNot
HappyOrNot
Innere Kanalstraße 15
50823 Köln
APG Cash Drawer
APG Cash Drawer
4 The Drove
BN9 0LA Newhaven
VKF Renzel GmbH
VKF Renzel GmbH
Im Geer 15
46419 Isselburg
POS TUNING Udo Voßhenrich GmbH & Co KG
POS TUNING Udo Voßhenrich GmbH & Co KG
Am Zubringer 8
32107 Bad Salzuflen