Generation Z, "Gen Z," or "Zoomers," drives experiential retail demand by requiring brick-and-mortar stores to be more than just a physical shop; they want brands to offer immersive social experiences, too. Many are shopping in person to have real-life product interactions and immediate gratification.
If you own a brand or run a store, you need to pay attention to these Gen Z shopping trends, as this generation plays a massive role in the future of retail innovation and sales.
As Investopedia reports, Gen Z will be the largest, highest-spending, and wealthiest generation in history. By 2030, they'll have an estimated total spending of $12.6 trillion. It'll account for nearly 19% of global spend.
By understanding how Zoomers are shaping retail and what they demand from it, your business can be one step closer to capturing a bigger share of this market.
What Is Experiential Retail?
Also called "retailtainment," experiential retail is when physical stores transform themselves into social, immersive destinations for consumers. It aims to be more than just a physical location for sales and transactions. It also seeks to:
- Enhance customer engagement
- Create positive consumer emotions
- Provide a way for two-way interaction (as opposed to online stores' typical one-way communication)
When retail stores offer unique in-store experiences, they can become more attractive to potential customers, particularly Gen Z. Zoomers prioritize authenticity and crave physical, interactive, social, and personalized experiences.
Indeed, despite Gen Z being digital natives, most still have what Advertising Week refers to as a "love affair" with malls. It cites data showing almost two in three shoppers aged 18 to 34 go to malls frequently. Moreover, over six in ten of Gen Z (64%) prefer in-store shopping when discovering new products.
What Is an Example of Experiential Retail?
One example of experiential retail is a pop-up store. While temporary, it can serve as a high-impact environment that creates urgency ("fear of missing out" or FOMO) and encourages direct consumer engagement.
Pop-up stores turn shopping experiences into social, engaging, and input-driven events.
They use strategies like offering exclusive, limited-edition products and shareable photo moments. They also feature immersive product showcases and creative installations using captivating transparent LED film screens.
How Is Gen Z Driving Experiential Retail Demand?
Gen Z's youth market influence on experiential retail ranges from demanding social in-store experiences to preferring tactile product interactions. They also favor the combination of digital and physical consumer experiences (also called "phygital), as these allow them to achieve immediate gratification.
Requiring Immersive In-Store Experiences
A study cited by news platform Quartz found that of surveyed members of Gen Z, 69% said they feel "less connected and more isolated" because of technology.
Perhaps it's because of their highly digital lifestyle that Zoomers seek invaluable, real-life interactions outside of screens. It's unsurprising, then, that they'd turn to in-person shopping and demand brick-and-mortar stores to give them experiences worth their time and money.
Whether it's a social, bustling pop-up shop, an educational in-store workshop, or an interactive product demo that requires input from potential buyers (e.g., Puma's Your Discovery Wall), these are examples of immersive in-store experiences Zoomers want.
Preferring In-Person Product Interactions
Gen Z may be the most online generation and the dominant force in online shopping. However, it's also the cohort with the highest number of members frustrated with online shopping.
According to 360 Magazine, a Deloitte study found that 83% of Gen Z carry this negative sentiment. It's higher than Millennials (82%) and Baby Boomers (69%).
Such frustration is a likely reason Zoomers seek in-person product interactions. They want to be able to see, touch, inspect, and review what they plan to spend money on before they pay for it.
Gen Z's need to have these tactile experiences contributes to their massive influence on experiential retail.
Seeking Immediate Gratification
In shopping, immediate gratification refers to a person's urge to satisfy their desire for a product instantly. Its priority is to enjoy the pleasure of a purchase immediately rather than wait. Long waits often occur due to delivery timelines or shipping delays.
Gen Z tends to seek immediate gratification, given their hyper-digital upbringing, where one-click purchasing (e.g., Amazon Prime) is the norm. Unfortunately, while online shopping is convenient, it's not perfect. Shipping delays are common due to factors like weather and supply chain disruptions.
In an attempt to avert those delays and satisfy their desire for immediate gratification, Zoomers turn to experiential retail. They do so to interact with and purchase products in real-time.
Frequently Asked Questions
How Can Brands Meet Gen Z's Demand for Experiential Retail?
As a brand owner yourself, you can attract more foot traffic, particularly from Gen Z, into your physical brick-and-mortar store by transforming it into an immersive shopping environment.
You can start by creating "Instagrammable" or photo-worthy spaces, such as artistic installations and selfie stations. They can encourage your young target market to create user-generated content and share it online.
If you have a bigger budget, consider investing in technological integrations, such as augmented reality (AR) for virtual product trials. Self-help tablets and kiosks are also good ideas, as they provide tech-savvy consumers with tools to acquire instant product information.
Why Does Experiential Retail Matter to Your Brand?
Experiential retail matters to your brand because it's crucial to Gen Z, and Gen Z holds a massive share of the shopping industry. If you don't cater to their needs and preferences, you can miss out on a lot of potential revenue.
Gen Z isn't the only generation that's into experiential retail, though; so are other generations, particularly Millennials.
Turn your brick-and-mortar store into a social, interactive destination, and it's more likely to attract consumers and encourage them to buy. Customers can also become your brand advocates, giving it free publicity (e.g., online reviews, social media stories, and word-of-mouth recommendations).
Turn Sales Into Memorable Experiences With Experiential Retail
Gen Z's influence on experiential retail, which includes requiring stores to offer social, immersive, and interactive experiences, can affect your brand's short-term profitability and long-term success.
Given this generation's purchasing power, it's time for you to cater to their needs and preferences and transform your store into a shopping destination worth reviewing, sharing, and raving about online.
Find more of the latest in business, tech, and shopping by exploring more of our news platform's guides and related reads.
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