Study Finds Younger Shoppers Put Little Emphasis on Retail Location Shopping

All over the United States, malls are dying. While it’s certainly in part due to the ongoing global COVID-19 pandemic and changes in consumer spending habits, there is likely a generational shift happening. A recent study issued by customer engagement company Verint (News - Alert) found that fewer than 36 percent of consumers under 40 prefer to visit stores when interacting with retailers, compared to more than two-thirds of shoppers 57 and older.

The report, which is based on the Verint Experience Index benchmark survey of consumer satisfaction with leading retailers, seeks to uncover the shifting shopping habits of younger consumers. The research is important for is retailers as they refactor their customer engagement strategies in the post-pandemic era. The survey revealed that younger Americans – those from Gen Z and the Millennial generation --  have more complex purchase journeys, with over 75 percent using at least one other digital resource – such as ratings websites, influencers, and social media – to help inform their purchasing decision.

For younger shoppers, “the digital experience” ranks second only to price as the biggest driver of customer satisfaction. Older generations are more apt to value the appeal, quality, and variety of merchandise. Younger shoppers do value the presence of a retail store location, but primarily as a depot to pick up merchandise after an extensive online shopping and purchasing journey.

The Verint research found that younger customers were more likely to experience difficulties completing a task during their first interactions with retailers; 44 percent of Gen Z shoppers and 43 percent of Millennials expended more effort than expected to complete an interaction. This may indicate that younger generations have higher expectations for digital experiences.

“Since Gen Z is the age group most likely to use digital solutions for some, or all, of their purchases, retailers need to ensure their digital experience provides a wide range of suitable products, with seamless purchase processes, to stand the best chance of retaining their business,” said Verint’s Jenni Palocsik, VP of marketing insights, experience, and enablement.

Edited by Greg Tavarez