Gen Z’s In-store Shopping Demands Mimic Online Expectations

In RetailNext’s latest “Retail Vibe Check Report,” researchers at the in-store analytics platform provider zeroed in on Generation Z and found some startling behavior patterns.

The big standout was that Gen Z expects the same experience in a physical store as when they shop online. “Gen Z lives at the intersection of digital and physical worlds — they’re not abandoning in-store shopping — instead, they’re demanding it evolve,” RetailNext said in the report. “Their frustrations with long lines, crowded spaces, and out-of-stock items reflect a deeper need: they want stores to work for them like the digital world does — instant, personalized and frictionless.”

There’s a lot at stake if retailers can meet these demands. Authors of the report estimate Gen Z’s spending power in the U.S. at $360 billion.

“Gen Z has grown up in an age where everything is on demand, and yet, when they walk into stores, they feel stuck in a system that hasn’t caught up,” the report’s authors said. “Retailers who can’t adapt risk losing this generation to the more fluid and responsive e-commerce spaces they trust. Gen Z isn’t just a consumer group — they’re a force pushing brick-and-mortar stores to become smarter, faster and more intuitive.”

These preferences may explain another data point revealed in the survey: while Gen Z loves to shop in physical stores, they often leave empty-handed.

The survey showed that 69 percent of Gen Z shop in brick-and-mortar stores weekly. “Yet, they’re leaving those stores empty-handed more often than any other group due to the heightened frustrations that hinder their willingness to complete purchases,” the report noted, adding that 66 percent of Gen Z “cited long lines as their biggest pain point, followed closely by crowded aisles (55 percent) and difficulty finding items (47 percent).”

RetailNext said the issues cited contribute to 35 percent of Gen Z shoppers leaving stores without making a purchase. “As 50 percent report stock shortages as a major reason for bailing on purchases, it’s clear that retailers need to prioritize addressing these challenges to prevent Gen Z from shifting back to online alternatives,” the report stated.

Joe Shasteen, global manager of advanced analytics at RetailNext, said as Gen Z continues to shop in physical stores, “they bring with them high expectations for convenience, speed, and efficiency. Retailers must optimize every touchpoint, from self-checkout options to on-shelf availability, to keep this critical demographic engaged and coming back.”

The report’s authors said despite the obstacles, Gen Z is open to technology-based solutions in stores. The data showed that 42 percent of Gen Z shoppers said they are eager to “use self-checkout kiosks or cashier-less checkout, both of which could drastically cut down on wait times and enhance the overall shopping experience.” And 27 percent of Gen Z shoppers polled said they “are very interested” in AI-powered chatbots for personalized support.

The research also showed the impact of social media on Gen Z behavior. The survey revealed that 24 percent of Gen Z are making purchases based on social pressures, which is “significantly higher than older generations, where only 4 percent report the same,” the authors of the report said, adding that 23 percent of Gen Z respondents said they are driven by viral trends on platforms such as TikTok and Instagram, “underscoring the importance of social media in shaping their in-store decisions.”