Understanding Gen Z In-Person Shopping Trends for Back-to-School Success
Is the mall dead? We seem to ask ourselves this question every year, and for 2024 the answer is still a resounding NO, with visits to indoor malls, open-air shopping centers, and outlet malls up ~10% year-over-year compared to March 2023, per Placer.ai's The Comeback of the Mall Report 2024. With back-to-school season upon us, getting in sync with Gen Z's unique in-person shopping habits is key.
While Gen Z still enjoys going to the mall, their reasons for doing so are a bit different from previous generations. There is no denying that online shopping is popular among Gen Z, yet many of them see mall visits as an opportunity for socializing, experiencing products firsthand, and enjoying the overall atmosphere. They often look for interactive and engaging experiences, such as pop-up shops, exclusive events, or Instagram-worthy spaces as an impetus for their visit, organizing time with friends around the event.
The mall is not just a place to shop; it's also a destination for entertainment, discovery, and connecting with friends. By embracing these trends, retail marketers can connect with Gen Z in a way that drives success and boosts sales during this critical time in the retail calendar.
Early Shopping Trends and Market Forecast
Nearly half (49%) of US adults will have begun back-to-school shopping by early July, according to a March 2024 survey by LTK. This early start underscores the importance of preparing marketing strategies well in advance. Beyond the chart, eMarketer forecasts that US back-to-school retail sales will grow 3.2% to reach $81 billion this year. This anticipated growth highlights the significant opportunity for retailers to capture a share of this lucrative market by understanding and catering to Gen Z's shopping preferences.
The Influence of Social Media on In-Store Purchases
Not surprising is the role social media plays in Gen Z's product discovery process. Nearly 67% of US consumers aged 16 to 24 have learned about a product or service through a social media video that organically entered their feed. This reinforces the importance of integrating social media strategies with in-store promotions. Retailers can create social media-friendly in-store experiences, such as Instagram-worthy displays or influencer-hosted events, to drive foot traffic and enhance the shopping experience.
Value-Driven Purchases and Experiences
Gen Z is known for its financial savviness and value-conscious mindset. While they appreciate affordability, they also seek quality and unique experiences. Retailers should emphasize value in their marketing messaging and offer exclusive in-store promotions during the back-to-school season. Creating value-driven experiences, such as limited-time offers, loyalty programs, and interactive demos, can attract Gen Z shoppers and encourage repeat visits.
Tailoring In-Store Experiences to Gen Z Preferences
Understanding and catering to Gen Z's preferences is key to driving in-store success. This generation values social activism, digital creativity, and global citizenship. Retailers can align their in-store experiences with these values by hosting events that promote social causes, offering DIY and customization stations, and showcasing globally inspired products. These tailored experiences resonate with Gen Z's desire for authenticity and personal expression.
Leveraging Lifemind Solutions for Enhanced Customer Insights
To truly understand and cater to Gen Z shoppers, retailers can leverage Lifemind's AI-powered tools. Lifemind provides deep customer insights that help retailers segment their audience and tailor their marketing strategies to individual locations for maximum impact. By using Lifemind, retailers can create personalized in-store experiences that align with Gen Z's values and preferences, while also taking into account distinct regional and life outlook values. that play a key role in driving purchase decisions.
For example, Lifemind recently analyzed a popular Back to School supply and clothing retailer with stores throughout the US. Understanding which stores sit in predominantly liberal vs conservative areas, with regional values that range from embracing Innovation to Reliability, can help boost back-to-school sales strategies in those stores.
Additionally, Lifemind's insights can guide the development of loyalty programs that resonate with Gen Z's financial savviness and value-driven mindset, ensuring long-term customer retention.
Practical Tips for Retailers
Enhance Omnichannel Marketing Strategies:
Integrate social media and in-store promotions to create a seamless shopping experience.
Use targeted ads and influencer partnerships to drive in-store traffic.
Use Data to Personalize Marketing Messages:
Leverage customer insights to create tailored marketing campaigns.
Highlight value-driven offers and unique in-store experiences.
Create Seamless In-Store and Online Shopping Experiences:
Implement in-store technologies like smart carts and mobile checkout to streamline the shopping process.
Offer exclusive online promotions that can be redeemed in-store.
Conclusion
Understanding Gen Z's in-person shopping habits is essential for driving success during the back-to-school shopping period. By creating engaging, value-driven in-store experiences and leveraging Lifemind's AI-powered insights, retailers can attract and retain Gen Z shoppers, ensuring a successful and profitable season.
