Gen Z still prefers shopping in the real world: AMP Capital
The next generation of Australian shoppers still prefers old-style shopping over online consumption, but only just.
According to AMP Capital research, 87 per cent of Gen Z shoppers – people now aged between 18 to 22 years – like or love shopping in-store compared to 79 per cent who like or love to shop online.
“Traditional shopping is not dead,” said Mark Kirkland, managing director of AMP Capital Shopping Centres told The Australian Financial Review.
But it is, Mr Kirkland happily concedes, under challenge from the changing consumption habits of the coming generation.
Younger shoppers are more inclined to research online than older shoppers, but they still value, and indeed crave, the sociality of the in-store experience, he said.
That insight has driven AMP Capital’s ambitious $670 million redevelopment of its Pacific Fair shopping centre on the Gold Coast.
‘Competing for time’
“We’re not just competing for people’s spending, we’re competing for their time as well,” Mr Kirkland said.
“We have to make the experience worth their while.
“The research talks about the need for the social experience. The increase in dining increases the social connection and so does creating these public spaces where people can hang out.
“It’s not just about the transaction, it’s about giving them something they can’t get online.”
The AMP Capital research underscores a broader concern among Australia’s retail landlords and the need to combat the challenge of online shopping.
In the past six months, the biggest listed retail landlords have been the biggest losers in the property sector, hit by a global turn against retail.
Already the more vulnerable US mall owners are under concerted attack by hedge funds taking short positions on commercial property debt as questions rise about the viability of some shopping centres.
Other findings
The AMP Capital report also uncovered more nuances and values important to the next generation of shoppers and well as those older than them.
They are both highly engaged with global issues and value strong ethics and companies with a purpose that goes beyond just selling, according to the report.
The report also confirmed another new reality: men love shopping.
This year, 46 per cent of male “future shoppers” – that is 18- to 22-year-olds – are more interested in staying ahead of popular trends than 36 per cent of their female counterparts, it found.
“It’s important that, as an industry, we constantly evolve to adapt to the current trends that engage our future shoppers in order to stay relevant,” Mr Kirkland said.
