Gen Z is reshaping retail by embracing in-store shopping more than any other generation (73% shop in-store weekly), valuing convenience and experience, favoring BOPIS and easy returns, spending more in-store than online, and demanding fast checkouts and flexible payment options to avoid abandoning purchases.
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GLOGen Z’s Shopping Habits: Why They Prefer In-Store Retail Over Online Shopping
A recent study conducted by Censuswide surveyed 2,001 U.S. consumers over the age of 18 between September and November 2024 to analyze generational shopping behaviors. The data highlights a significant shift in consumer habits, particularly among Gen Z (ages 18-27), who are redefining the retail landscape by embracing in-store shopping more than any other generation. Despite growing up in a digital-first era, Gen Z sees physical retail as an engaging, convenient, and social experience, forcing retailers to rethink their strategies to meet these evolving expectations.
Key Takeaways from the Study
1. Gen Z Shops In-Store More Than Any Other Generation
- 73% of Gen Z shop in-store at least once a week, compared to 65% of Baby Boomers.
- 57% of Gen Z consider in-store shopping an enjoyable experience, while only 35% of Baby Boomers feel the same.
2. Why Gen Z Prefers Physical Stores
For Gen Z, physical stores serve a dual purpose: entertainment and convenience. The top reasons they shop in-store include:
- Buy Online, Pick Up In-Store (BOPIS): 49% of Gen Z use in-store pickup compared to just 28% of Baby Boomers.
- Easy Returns: 38% of Gen Z return online purchases in-store, while only 6% of Baby Boomers do the same.
- Social and Experiential Shopping: Shopping isn’t just about buying—it’s a social and immersive activity for Gen Z.
3. The Beauty and Fashion Effect
- While 90% of Baby Boomers shop for groceries in-store, only 60% of Gen Z do the same.
- However, luxury shopping is a key driver for Gen Z, as they are 4 times more likely to shop for high-end goods in-store compared to Baby Boomers.
4. Spending Patterns Across Generations
Despite being digital natives, Gen Z still spends more in-store than online, aligning with older generations:
- 45% of Gen Z spend more in-store vs. 37% online
- 44% of Millennials spend more in-store vs. 34% online
- 48% of Gen X spend more in-store vs. 28% online
- 53% of Baby Boomers spend more in-store vs. 27% online
- 61% of the Silent Generation spend more in-store vs. 14% online
5. Big Purchases: Gen Z is More Comfortable Buying Expensive Items Online
- 38% of Gen Z prefer making high-ticket purchases online, while 37% prefer in-store.
- In contrast, Baby Boomers still strongly prefer in-store shopping for big purchases (49%) vs. online (22%).
6. Checkout Frustrations: The Make-or-Break Moment
Even though Gen Z enjoys in-store shopping, they demand convenience and will abandon purchases if stores fail to meet expectations:
- 60% of Gen Z will leave a store if checkout lines are too long.
- 28% will abandon a purchase if their preferred payment method isn’t available.
What This Means for Retailers
To attract and retain Gen Z shoppers, retailers must align with their digital-first, experience-driven mindset:
Streamline checkout processes (self-checkout, mobile pay, AI-driven customer assistance).
Offer flexible shopping options like BOPIS and easy returns.
Create engaging in-store experiences that blend entertainment, personalization, and convenience.
Ensure digital payment compatibility, as Gen Z is more likely to leave if they can’t pay the way they want.
“Gen Z demands shopping experiences that reflect their digital-first mindset—effortless, flexible, and deeply integrated into their daily routines. Retailers that align with these expectations will define the next era of commerce.”
— Davi Strazza, Adyen President of North America
With Gen Z shaping the future of retail, stores that adapt to their expectations will thrive, while those that fail to modernize risk losing a powerful consumer base.
Source: Adyen
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