The news: Gen Z—whose buying power is expected to skyrocket 366.7% between 2024 and 2030 to $12.6 trillion—is a key marketing cohort for brands and advertisers. And technology is an important factor in this generation’s shopping journey.

• Just 6% of Gen Zers and millennials worldwide don’t use retail apps, per SOTI’s Retail Tech Assessment report.
• The top reasons Gen Zers do use them include exclusive savings, faster checkouts, and offer notifications.
• 60% of Gen Zers don’t care if retailers use AI, as long as their shopping experience is personalized.
• However, 52% would stop shopping in a store if they felt AI was monitoring their purchase, suggesting a fine line between personalization and privacy risk.

There’s room for improvement within retail apps—just 25% of global consumers use AI within retail apps to personalize shopping experiences.

Zooming in: At the brick-and-mortar level, global consumers are already taking advantage of tech like self-checkout, high-speed in-store Wi-Fi for scanning, smart carts for locating products, and mobile POS to check out from anywhere in the store. Just 11% don’t use any in-store technology.

For those who focused on tech outside of the store:

• 58% of global consumers would like more technology-enhancements in shopping, like instant refunds to cards or geotargeted offers when they’re near a store.
• 58% pick where to shop online according to how much personalization they get from the retailer.
• 16% are using augmented reality (AR) in retail apps.

Convenience and feeling like they truly matter to retailers are driving purchase decisions, but it’s up to retailers to improve the experience. While tools like AR may be missing the mark at present, easy-to-follow demos and advertising the tech could boost use.

Overall, 90% of consumers shop both online and in stores, meaning retailers should treat each surface equally and update technology according to consumer needs.

Recommendations for retailers: Don’t skimp on personalization. Consumers provide a trove of information in retail apps and store sites, often for the express purpose of getting content meant for just them, especially among Gen Zers.

That data can help inform product recommendations, offers, and even tips on their new purchases—think styling suggestions for a recent blouse purchase or a list of nearby spots to try out new ski bibs.

Use AI to build out quick-turn content to target shoppers based on purchases, location, and preferences. Above all, ensure content is truly personal to individual behavior and not generic for everyone, which could risk both brand loyalty and trust.

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