Gen Z Prioritizes Cash/Debit, Values Friends Over Influencers and Values Shopping In-Store
From a recent ICSC survey of 1,008 respondents of 16 to 26 year-olds.
>Where They Shop
* Gen Z despite growing up with digital technology, are in-stores shopping with friends (just like previous generations)
* Cash and Debit represent 66% of purchases. So far, the generation is overwhelmingly credit-averse. And not using phone-based wallets as much as you might think: 14% and BNPL 3%.
This is the most interesting stat to me.
* Prefer to shop at off-price discounters like TJ Maxx, Walmart, as well as Dollar stores.
>How They Think
* Are coming of age in a time of financial uncertainty, so are concerned about debt and financial independence.
* GenZ is a socially and environmentally conscious generation, including mental health issues.
>Why They Shop
* Influencers: Not so fast, family and friends sway their decisions much more than online influencers -- although this could be a situation of "what I say is different than what I do."
* GenZ shops in-store because of the ability to get things immediately (30%) and the ability to see, touch, try products (28%).
To me the interesting question about a survey like this is how these interact. For instance, despite environmental and sustainable goals being a top priority, this same demographic is one of the largest cohorts of consumers at popular fast-fashion sites.
In short, broad brushstrokes do not apply. The shift in credit behavior is one of the most interesting elements to me, especially given how much credit drives the consumer economy in the past 40 years.
