Gen Z favors stores over ecommerce

The news: Gen Z consumers have a greater affinity for in-person shopping than older generations.

  • Shoppers ages 18 to 24 made nearly two-thirds (62%) of their general merchandise purchases in stores last year, compared with 52% for those ages 25 and older, according to Circana data shared with The Wall Street Journal.
  • Roughly 1 in 5 Gen Z adults shop in a clothing store at least once a month, compared with 10% of the general population, per YouGov.

Zoom out: Plenty of retailers are looking to capitalize on Gen Z’s preference for physical retail.

  • Princess Polly said it would open eight stores in H2 2026 and early 2027.
  • Edikted doubled its physical footprint last year to capitalize on TikTok virality and has four openings in the pipeline, including its first UK store.
  • Urban Outfitters plans to open seven of its Gen Z-focused stores this year, which feature curated assortments based on local tastes and brighter and more spacious fitting rooms.
  • Urban Outfitters is also continuing with its experiential On Rotation activation, with Vans as the latest brand partner.

Recommendations for retailers: Gen Z’s preference for physical retail means stores can't be neglected. Our research shows that more than half of Gen Z shoppers find new products in-store, making it just as important for discovery as social media.

Retailers that lean into the experiential side of in-store shopping also stand to benefit, as younger consumers seek avenues for entertainment and in-person connection.

Finally, companies should consider returning to malls, which are once again becoming popular gathering spots for younger generations looking to spend time with their friends and indulge in retail therapy.

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