How Can Retailers Capitalize on Consumer Shopping Demographics?

Recent research from e-commerce consulting firm 2 Visions delves into consumer shopping habits, revealing intriguing insights into preferences across generations and regions.

According to 2 Visions, which surveyed 2,411 Americans between February and April 2024, 72.41% of consumers believe that online shopping offers more variety than traditional physical retail locations. However, in-store shoppers tend to perceive that physical stores have higher-quality goods than online platforms, with 77.08% favoring physical stores, while 53.85% of online shoppers believe online platforms offer better quality.

Meanwhile, the Northeast dominates the study in online-only purchasing, with 30.23% of consumers purchasing this way, possibly influenced by urban convenience and robust digital infrastructure.

A notable divergence appears concerning accessibility based on income levels. High-income earners enjoy near-universal access to shopping within 30 minutes, contrasting sharply with lower-income individuals — only 85.19% of consumers who earn less than $50K have the same shopping access. This income-based accessibility gap underscores significant economic disparities in consumer behavior.

Interestingly, hybrid shopping is favored among high earners with salaries over $100K, with 66.67% engaging in both online and in-store channels. Urban renters also benefit from better local shopping access compared to homeowners, likely attributable to their proximity to retail centers.

Gen Z stands out once again, reporting an exceptionally high desire for in-store experiences compared to other generations, with a 30.77% preference for physical shopping options. Additionally, they have a 76.47% satisfaction rating for their local shopping options.

These findings underscore the multifaceted nature of consumer shopping habits, influenced by generational preferences, regional dynamics, income disparities, and quality perceptions. Understanding these intricacies is crucial for retailers seeking to tailor strategies and adapt to evolving consumer demands in an ever-changing marketplace.

In recent corporate updates, CEOs and CFOs across major retail brands have highlighted strategic shifts toward off-mall locations. Macy’s CEO Tony Spring emphasized prioritizing small-format Macy’s outside of malls amidst plans to shutter around 150 underperforming stores. Bath & Body Works CFO Eva Boratto echoed this sentiment, noting progress in increasing off-mall presence as beneficial for the company. Foot Locker’s president and CEO, Mary Dillon, also acknowledged strides in shifting away from malls during the company’s latest earnings call.

Similarly, Signet Jeweler’s Chief Financial, Strategy, & Services Officer Joan Hilson recently revealed that the 114 stores that closed last year were mostly “lower-performing mall locations and U.K. stores,” emphasizing the stronger performance of off-mall outlets. Victoria’s Secret CFO Tim Johnson also highlighted successful off-mall ventures and plans to reduce mall exposure in certain markets.

However, amidst these trends, a report from the International Council of Shopping Centers (ICSC) suggests that Gen Z consumers still view malls as social hubs, with 60% visiting for socializing rather than specific purchases.

Additionally, Asian American malls in the U.S. show promising signs of success, and shopping malls across the world that allure shoppers with grandeur or offer engaging experiences continue to thrive.

Consumers from the Gen Z demographic in particular remain firmly rooted in traditional retail experiences, bucking the trend toward virtual shopping realms. Experts attribute this to the generation’s desire for instant gratification, which drives them toward physical stores. Surveys indicate that Gen Z’s preference for in-person shopping matches, if not exceeds, their online habits. Malls, once deemed outdated, are now rejuvenated by Gen Z’s penchant for community-oriented spaces. With their substantial spending power, malls are banking on Gen Z’s patronage for sustained success. For Gen Z, in-store shopping offers the opportunity to try on items and enjoy a social outing, reflecting a desire for tangible experiences in an increasingly digital world.

Indeed, malls continue to serve as venues for social connections, offering entertainment options and a sense of community, particularly for young people in suburban or rural areas. Moreover, a PYMNTS Intelligence study commissioned by Visa Acceptance Solutions indicates that the majority of global consumers prefer engaging with physical retail locations at some point in their shopping journey, whether in-store or for online pickup.

This study surveyed thousands of consumers and merchants across seven countries. It identifies the rise of the “Click-and-Mortar” shopper, who expects digital conveniences in physical stores, constituting a significant portion of global shoppers. Retailers can cater to these evolving preferences by offering digital features like voice-assisted shopping and buy now, pay later options. While some regions are keeping pace with these demands, others lag behind due to various factors. However, failing to meet the expectations of Click-and-Mortar shoppers poses risks for retailers worldwide.