In the last issue of CWB, we spoke about shopping destinations for young parents.
Generation Z (those born after 1995) like their parents, is a generation of consumers whose lives are filled with advertising. But for retailers, oddly enough, it is more difficult to make money on Gen Z than on their parents. The fact is that, unlike the X and Y generations, Gen Z take a lot of time from the moment of choosing a product to its purchase.
Since our last report, the percentage of parents shopping in local town centres has been dwindling. Overall, the number of parents reporting to shop in local town centres fell by 5.2% to its lowest level of 55%. These younger ‘Gen Z’ parents are the least likely age group to shop in local town centres, with 45% of under-25s shopping there, decreasing by 21% since the last period.
These parents have instead shifted their spending to other locations. Based on Parents Insights data, discount outlets have increased by 25% with under25s, who cite getting the best prices as outlet shopping’s most appealing factor. Online shopping has also increased in popularity for Gen Z parents, from 29% for Aug-Oct 2018, to 37% now, with convenient shopping hours being one of its main pull factors. However, online shopping still ranks behind the local town centre as a shopping destination (36%).
Graph 1. Shopping Location (Parents Insights, Q2 2019)
Offline retailers are trying to consider the habits of Gen Z. Many of them no longer object to the actual transformation of their stores into showrooms with pop up events where young people come to see, to touch and to review things they saw on the Internet. For the purchase to be completed, retailers open online stores – allowing them to purchase goods through fashionable digital technologies.
As we draw towards the Christmas trading period, town centres could look to attract sales from Gen Z parents by playing to their key strength for this demographic – good transport links and easy accessibility – for which they outrank all other shopping destinations.
Alternatively, smaller town centres could challenge city centres by increasing their offering of restaurants and live events.
This is a brief snapshot of our capabilities, but it’s clear the attitudes, behaviours and consumption of young parents are changing significantly. We’re offering brands an immersive planning meeting to illustrate how data and insights can help inform advertising, content, licensing, product and marketing planning for 2020. To download a complimentary Parents Insights report click below: