Retailers Need to Change Marketing Tactics to Appeal to Gen Z

By Anna Sladek

I recently read a Bloomberg article about the industries Generation Z is predicted to kill. Of all the examples, malls caught my eye. The article states that “America’s malls have been closing at a record pace as e-commerce becomes the preferred mode of shopping for Gen Zers. More than two-thirds of U.S. malls saw a decrease in national retailers in 2018, according to a report from property research firm Green Street Advisors LLC.” So, in light of the school year starting and everyone having crammed in or in the process of cramming in their back to school shopping, I thought I would explore the reasons why America’s malls are closing at such a fast rate.

In the article, Bloomberg blames the fact that Generation Z would rather go online for shopping. I disagree, and a Business Insider article does too. Business insider cites a survey conducted by PricewaterhouseCoopers. The results were interesting. “PwC surveyed 2,395 national consumers — and, separately, 301 young Gen Z consumers — for its annual Holiday Outlook survey…In the survey, 81% of young Gen Z respondents said they preferred to shop in stores, while 40% said they will only shop in stores. Shoppers over 17, on the other hand, said they preferred to split their shopping evenly between online and in-store.”

[ctt_hbox link=”Jf0Q4″ via=”yes” ]While some may assume that younger generations just want to do everything online, the reality is actually quite the opposite. Generation Z wants both the online and brick-and-mortar experience, the key to each being the experience.[/ctt_hbox]

What retailers need to do to up their game and attract younger generations is quite simple. They need to shape their market strategies to better fit their target market. According to Forbes, Generation Z “will account for 40% of all consumers by 2020.” But retailers are not positioning themselves to appeal to the Gen Z consumer. Many have not made any improvements or taken any steps to change the way they sell clothes.

The first step to improving business is to expand and change tactics. The retailers that have started to evolve are seeing positive results. When Gen Z-ers in the PwC survey were asked what they loved about stores, they described the in-store experience as a motivating factor. “Fun experiences” and “live events” were mentioned, as well as in-store specials. Macy’s department store is also taking steps to appeal to Gen Z by advertising an apparel line on YouTube, according to a Mobile Marketer article. Research has shown Gen Z watches more YouTube than TV, so by designing an apparel line “specifically for the audience of AwesomenessTV,” Macy’s is reaching its audience members where they are at.

[ctt_hbox link=”Jf0Q4″ via=”yes” ] Gen Z seeks unique experiences. Retailers who market to and create these experiences for Generation Z will thrive into the future; those who do not take note of Generation Z will become irrelevant.[/ctt_hbox]

While some may assume that younger generations just want to do everything online, the reality is actually quite the opposite. Generation Z wants both the online and brick-and-mortar experience, the key to each being the experience. Gen Z seeks unique experiences. Retailers who market to and create these experiences for Generation Z will thrive into the future; those who do not take note of Generation Z will become irrelevant.