Jul 10, 2023
Gen Z demographic key to business success
Two-thirds (64%) of Canadian retailers agree it is crucial to attract Gen Z customers for the success of their business, up from just over half in 2019, says research from American Express Canada. The research also suggests that while retailers have made progress in reaching this increasingly powerful demographic, they have yet to close critical gaps that drive true brand loyalty. The research shows that the percentage of Canadian retailers targeting Gen Z more than doubled between 2019 and 2023 (25 versus 57%). Opportunities for retailers to invest in Gen Z are plentiful and worthwhile, as they may be one of the most loyal generations to date. Nearly half (47%) of Gen Zs say they are brand loyal most of the time. They also appreciate being rewarded for loyalty. Forty-five per cent of Gen Z respondents say they would buy a brand again if they earned valued rewards on purchases, indicating a good loyalty program is a great place to start for retailers. As well, 61% of Gen Z consumers consider in-store their preferred method of shopping, and more than one in four (28%) say they shop in retail stores more now than they did before the pandemic. Yet, just a quarter of retailers (27%) are offering unique in-store experiences, only slight increase from 2019 (23%). These findings present an opportunity for retailers to invest more in creating stronger retail store experiences for increased brand engagement and foot traffic. Examples among retailers prioritizing in-store experiences include creating a soothing sensory experience for Gen Zs while they shop and merchandising that focuses more on storytelling.
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