Generational Shopping: Baby Boomers vs. Gen Z – A Surprisingly Similar Picture

Introduction

You might think Baby Boomers and Generation Z have little in common. Boomers, often retired or nearing retirement, are focused on downsizing and cost-consciousness. Gen Z, fresh out of college or still in school, is navigating the complexities of early adulthood and establishing financial independence. One might assume vastly different shopping preferences. Yet, a surprising trend emerges: both generations, despite their vastly different life stages, exhibit a surprising fondness for brick-and-mortar stores.

Baby Boomers: The Power of the Physical Store

Baby Boomers, still a significant force in the market with substantial buying power (estimated at $2.6 trillion), are a driving force behind the continued success of physical retail stores. Crucially, many Boomers remain actively employed, even those past traditional retirement age. This active workforce contributes significantly to their purchasing power. In fact, projections show that 65% of Boomer women are expected to be working by 2022, many returning to the workforce after retirement. This renewed employment provides them with the necessary income to maintain a comfortable lifestyle and cover living expenses.

Their shopping preferences reflect a strong value on personalized service and a positive in-store experience. Boomers expect to be treated as valued customers, and a poor customer service interaction can deter them from returning to a store, even a favorite one. They value a convenient and straightforward shopping experience, preferring to quickly locate familiar products they already trust rather than browsing for new trends. While not strictly nostalgic, Boomers tend to gravitate towards products that have proven their value over time or that are perceived as popular among their peers.

While they favor physical stores, Boomers aren't entirely disconnected from online shopping. They often utilize online platforms to research products unavailable in nearby stores or for items with unique characteristics. However, they are not typically driven by bargain hunting. Loyalty programs and reward options online can incentivize them to use online shopping channels.

Their spending priorities reflect their evolving life stages, with an emphasis on home improvement and customization, quality food options, and spoiling beloved pets. Travel, especially luxury cruises and airfare, often becomes a significant spending category for this generation.

Generation Z: The Digital-First Shoppers with a Foot in Both Worlds

Gen Z, the first truly digital-native generation, expects instant gratification and seamless online experiences. This expectation permeates all aspects of their lives, including shopping. They prioritize quick online access and dislike delays. In fact, a common expectation within this generation is that businesses should answer calls within 45 seconds or they will likely hang up. This desire for speed and ease has a notable effect on their shopping habits. This desire for immediate gratification and a quick answer often directly influences Gen Z's purchasing decisions.

Surprisingly, despite being digitally immersed, Gen Z demonstrates a significant preference for in-store shopping. For Gen Z, shopping is often a social activity, an opportunity to plan outings with friends. They create lists based on online research and then visit their local stores to acquire the items.

However, Gen Z in-store shopping isn't about static, traditional experiences. They seek out stores that offer digital enhancements, integrating the physical space with their online lives. They use online research to identify products, then often opt for "buy online, pick up in-store" (BOPIS) to avoid shipping delays and inconvenience. Fashion rentals and clothing resale platforms are also attracting Gen Z consumers who value staying current with trends without breaking their budgets.

Gen Z values authenticity and trusts word-of-mouth recommendations from friends and family, rather than relying heavily on social media influencers. They appreciate transparency and genuine interactions with brands, responding positively to user-generated content (UGC) like reviews and social media posts.

Due to their often limited financial independence, Gen Z may have greater flexibility in spending, though potentially limited income. They don't yet bear the full burden of living expenses, and many still receive allowances, which provides greater flexibility for discretionary spending. It's crucial for brands to connect with this consumer base now to foster relationships that will endure.

The Converging Paths of Boomers and Gen Z

While Baby Boomers and Gen Z grew up in vastly different worlds, their shopping preferences are surprisingly converging. Both value in-store experiences despite frequent online research. Each generation seeks a unique, positive experience, whether it's the personal touch of the physical store or the seamless convenience of the digital age. Rather than being detached from physical stores, both generations value experiences that go beyond the transaction, emphasizing the human connection and quality interaction inherent in the in-person shopping experience.

Retailers can effectively reach both generations by prioritizing their needs, crafting positive shopping experiences, and embracing the uniqueness that each generation brings. Rather than seeing them as opposing forces, retailers can serve them effectively by meeting both their desire for quality and personalized service.