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How will Gen Z impact the high street?

Friday, 31 January 2025

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As gen Z matures, technology, AI, consumer experience and sustainability are intertwining in a way
that’s reshaping retail once again.

Gen Z – those born in the late 90s and early 2000s – have grown up. Now aged in their late teens and
early 20s, they are commonplace at work, some have settled down and many have even clambered
onto the evasive property ladder. Whatever their professional, marital or property-owning standing,
their spending habits are shifting retail in a different direction.

As digital natives, tech has featured all their lives, not surprisingly, they expect a digitally integrated
experience whether they’re looking for a new outfit or buying a new car. As children of the
algorithm, they expect a highly personalised shopping experience, are less likely to believe brand
hype and are more likely to rely on influencers when it comes to making a purchase decision.

However, sustainability is hugely important to this generation and they want brands to shoulder
their fair share of social responsibility to help create a better tomorrow.

Ten years ago, just 12.5% of sales took place online, according to figures from the Office of National
Statistics, whilst in 2023 online retail accounted for 26.7% of the UK’s total retail spend. That still
means most consumers are parting with their hard-earned cash in person. However, fail to adopt
ecommerce solutions or deliver exceptional experiences both on and off-line and gen Z shoppers will
take their custom elsewhere.

The good news for retailers is that the in-person shopping experience is here to stay for the
foreseeable future or at least the next 10 years, according to Retail Week. Pop-up experiences,
though, are a must to attract shoppers. Take Selfridges when Jellycat opened their ‘fish and chip’
themed van in the store’s toy department which became a social media hit.

Expect to see more tech complimenting in-store offerings over the next decade which will be sure to
whet gen-Z’s appetite. More self-service apps and pay stations, for example, whilst experimental
pop-ups and collaborations will continue. Comfortable seating areas to encourage shoppers to relax
and take their time are becoming more commonplace whilst staff wandering around with iPads
rather than stuck behind a till enables brands to deliver a friendlier and more informal service.

Robots may not be running our stores anytime soon (thankfully!) but with the likes of Zara and H&M
providing apps to help shoppers navigate stores, it isn’t surprising that Retail Week’s Talking Shop
report found that 40% of store staff surveyed believed stores would not exist in five years’ time.

Retailers though should fear not, according to research published by wholesalers Faire in October
last year, almost three-quarters (74%) of those aged 18-27 (gen Z) head to the High Street to make
their purchases. That’s higher than any other group – 64% of millennials opt to shop in-store, 61% of
gen Xers, 57% of boomers and 56% from the silent generation (those who grew up when children
were seen and not heard).

Independent stores also came out top for gen Z with 40% putting such outlets top of their list
although it was millennials who spent the most money with independents with 32% of everything
they buy coming from such stores compared to a still healthy 29% of those aged 18-27.

Whether gen Z will continue with its in-store shopping trend is yet to be seen and, of course,
retailers will soon have their sights honed on gen alpha – currently aged up to 15 – when planning
the future of their stores.

At Bonsors, we have a continual of units for any independent businesses looking for premises
including St George Wharf, located on the south bank of the River Thames in Vauxhall and at Crown
Arcade, opposite the Eden Walk shopping centre in Kingston upon Thames, which already has a
tailor, barber and a nail bar.