While much attention has been given to Generation Y and today's millennials, those participating in the retail industry are beginning to wonder what Generation Z will mean for the sector.

Who are they? 
Forbes categorized Generation Z as those who are age 17 and under, or anyone born after 1997. The magazine maintained that while GenYers have a more positive, optimistic view of the world around them, GenZers are the realists of the current age. 

This attitude makes sense, as these soon-to-be consumers grew up in a post 9-11 world in which discussions of ubiquitous surveillance and seemingly endless war are both a part of normal life. They've been hardened by frequent reports of school shootings and gun violence. 

The economics of GenZers
Not to mention, many GenZers belong to families that were profoundly impacted by the onset of the Great Recession, suggesting a preference for financial security and the need to "buckle down" during hard times. What it also means is that GenZers are cognizant of just how volatile the economy can be. 

Forbes noted this environment has prompted this generation to be much more careful with how they spend capital. They've witnessed parents lose jobs and older siblings entrench themselves in debt, and they want to avoid this situation. The source noted 57 percent of GenZers between the ages 13 and 17 asserted they would rather save money than immediately spend it, and many maintained they'll weigh the costs and benefits of attending college. 

What it means for retail 
Retail merchandising is subjected to a class of consumers who research items before they buy them. While millennials subscribe to this behavior, making sure an investment is worth it is practically ingrained in the subconsciousness of a GenZer. 

In this regard, something interesting is happening. Business Insider noted GenZers that shop for goods often spend more money online than they do in-store. Why is that? There are a couple of likely possibilities: 

• GenZers are suspicious of salespeople on the floor who are paid to sell them products and therefore conclude that their opinions on products are biased. 
• GenZers know they can return items even if they're purchased online. 
• Having been born literally during the Internet boom, they know how to find thorough information regarding items as quickly as possible, whether that be through forums, blogs, their friends, etc. 

Above all, it must be noted this particular age group will avoid being financially cheated at all costs. The mentality is this: "We're not going to make the same mistakes our predecessors did."

This entry was posted by Retail Pro on Wednesday, September 17th, 2014 at 11:49 am .