From a couple of recent posts on RetailWire, here are some comments about whether today’s Gen Z shopper entering the consumer landscape is more price-conscious than his/her older sibling, parent or grandparent. My opinion:
Shoppers regardless of age are more price-conscious and value-oriented than ever. Some of this is residue from the Great Recession, and some of this results from the “empowered shopper” with plenty of price data as close as the nearest cell phone.
I wouldn’t describe Gen Z as uniquely price-oriented. I’ve taught a college-level retailing class for ten years, and it’s always a challenge to discuss retailers that the students can’t afford to buy from. (And today’s college students fall right into the Gen Z age profile.) These are mostly students who are working through college while taking on significant debt, so it’s no wonder that they visit TJMaxx instead of Nordstrom. But their spending power will change as they form households and grow their career earnings potential.
And from a later post on the same topic:
I’m not convinced that Gen Z shoppers are any more or less bargain-conscious than their older siblings, parents or grandparents. It’s the world we have lived in for a long time — not just post-recession or with the advent of m-commerce. It’s not by accident that Target, Walmart, Kmart, Kohl’s and others opened their doors in 1962 because it signaled a “search for value” that hasn’t let up.
I’m more focused on the two items on the list that will affect stores’ real estate strategies for years to come. If Gen Z shoppers are both mall-agnostic and commute-averse, this will benefit neighborhood retailers — or at least those retailers willing to rethink their traditional approaches to site selection. And, of course, it benefits e-commerce retailers like Amazon who bring a different meaning to “localization.”