Retailers are missing out on the potential of sales from Gen Z shoppers by failing to meet their needs, according to a final year Oxford University undergraduate.
The undergraduate Freddie Finlay, who spent his summer as an intern with consultancy firm The Category Management Company, stated on social media that both big and small retailers seem to be failing to "decode’ our needs".
Finlay explained, "With no car, I use shops within bag-carrying distance of my college, so I’m confined to convenience formats, where I find larger supermarket best-selling ranges seemingly compressed into smaller layouts. This is our channel but there is little or no inspiration, just products that largely appeal to my parents’ generation. Where are the products that appeal directly to me?”
Mentioning "range paradox", Finlay added that in larger supermarkets, he felt
"overwhelmed by choice" but failed to find those items in convenience stores.
"Gen Z do not shop in larger store formats where the products they want are stocked but shop in convenience formats where they are not," he said.
Finlay also felt disappointed by the stores' efforts on sustainability aspect.
He stated, "I was disappointed by how little this is reflected in-store in terms of both pack labelling and product grouping. Why not dedicate an easy-to-find section to showcase well labelled environmentally friendly products?”
Meanwhile, Finlay noted that when it comes to meal deals, retailers are missing the point.
“Meal Deals represent fantastic value for money because both taste and price are important. But variety and trying new things are also central to my decisions. We’re now being offered Iced Coffee, for example, but only alongside old favourites from big brands. Why not use some of the meal deal space to trial innovations or flavours, appealing to a more experimental audience?”
Expressing despondency over loyalty schemes algorithm, Finlay pointed out how grocery retailers don’t seem to take Gen Z shoppers seriously.
"I think it’s simple, build loyalty by using student-targeted discounts on quality products within bulk foods like pasta and convenience products like ready meals.”
“Gen Z shoppers are making their shopping choices for the first time, shaping our behaviours for the future right now; standing in the wings to play a major role as shoppers for decades to come,” he said. “But whilst Gen Zs must surely present a commercial opportunity, retailers seem to be failing to ‘decode’ our needs.”