Shopping Patterns of the New Generations in America

It's interesting to see the change in American market trends over eleven years later concerning consumption patterns, lifestyles, and shopping habits of the new generations.

The new generations in the United States, particularly Gen Z, are leading a revival of shopping in physical stores, prioritizing the experiential aspects of in-person retail, like touching and feeling products and enjoying social outings, while also utilizing hybrid models like buying online with in-store pickup (BOPIS). This shift is revitalizing malls and pushing retailers to create engaging, omnichannel environments that blend digital and physical experiences to satisfy Gen Z's desire for both convenience and social connection.

Main Trends and Trigger Factors

• Experiential Shopping: Gen Z in America views physical stores as places for social interaction and experiences, going beyond just purchasing goods. This includes events, unique store designs, and opportunities to connect with friends.
• Sensorial Engagement: The ability to touch, feel, and try on items, especially in fashion and beauty categories, is a significant attraction for younger American consumers who want to assess product quality firsthand.
• Omnichannel Integration: The new generations in the USA seamlessly blend online and offline shopping, using physical stores for services like BOPIS and in-person returns.
• Malls as Social Hubs: Malls are being revitalized as young shoppers use them as social spaces to hang out, dine, and meet friends, rather than solely for shopping.
• Immediate Gratification: Although they are digital natives, American Gen Z and Millennials still appreciate the immediate gratification of taking home an item right after purchasing it.
• Product Discovery: While discovering products on social media, these generations are more likely to make the actual purchase in a physical store.
   

How American Retailers Are Adapting to New Shopping Habits

• Creating Engaging Experiences: U.S. retailers are hosting live events, incorporating interactive displays, and turning stores into destinations with activities like pickleball courts to attract customers.
• Personalized Approaches: Brands are investing in personalized marketing and unique in-store experiences to capture the attention of American Gen Z consumers.
• Seamless Digital Integration: American retail chains are implementing omnichannel strategies to ensure a consistent and integrated customer experience across all their online and physical platforms.
• Convenience Services: Offering services like buy online, pick up in-store (BOPIS) and in-store returns provides flexibility that appeals to younger shoppers.

Article from February 4, 2014

In the USA, Retail Stores Selling Youth Apparel Are Struggling

According to the New York Times, American teenagers seem to be poorer than in the past, reducing their purchases of accessories and clothing. The growing trend of preferring online shopping is also contributing to the decline in retail sales in the USA. The new generations of Americans, raised with the internet, bypass retail stores to search the vast online offerings for more affordable prices.

Statistics suggest that U.S. retail sales recorded by stores selling apparel for teenagers are contracting by up to 6 percentage points [this is the case with Abercrombie], a decline much greater than expected for any other type of retail.

It's widely believed that this phenomenon is a direct consequence of the rising youth unemployment rate in the USA: more than 20% of young people aged 16 to 19 cannot find work, an alarming figure compared to the national average.

In a context where price is the only deciding factor in the purchasing choices of American teenagers, retail stores must radically change their mindset. The competition is fierce, especially considering that there are many alternative outlets where similar items in terms of lines and style can be found at much lower prices