The only thing that is constant in retail is change.

As difficult as it may be to remember a time without technology, there was once a time where retail relied solely on in-store footfall, where products were highly localised to tastes and preferences. Only towards the end of the twentieth century did retail undergo a change in the way it reached out to new consumers. Mass appeal, advertising and production owned the spotlight for retailers in their efforts to extend their products to the wider nation.  

However, a new generational wave has once again driven retailers to rethink how they reach their consumers. Much like its roots, personalisation, experience and convenience have empowered retailers to adapt the ways in which they target and satisfy the demands of today’s latest generation of shopper. 

Generation Z have been the catalyst behind technological disruption in almost every industry over the past decade. Of all industries, retail has faced perhaps some of the biggest disruptions made by young consumers such as Gen-Z as a result of their unique shopping preferences and increasing expectations from brands. They are arguably today’s youngest set of ‘mature’ shoppers, capable of using their own finances to make decisions about how and where they shop. 

What’s in store for the future? The wild-scale adoption of self-service technologies 

Having grown up in sync with technology, Gen-Z expects information to be immediately available, and they want to be able to help themselves. They value retailers who respond to their needs and can provide them with an engaging, personalised and hyper-relevant experience. They crave experiences where a retailer knows exactly what they are trying to achieve in real-time.  

We work with retailers of all shapes and sizes who have found innovative ways to implement self-service technologies to provide enriched shopping experiences for their customers. From endless aisle kiosks to customer service and loyalty stalls, interactive digital signage and more, in-store self-service solutions are giving customers like Gen-Zers more information before they have to ask for it, creating a more valuable interaction and bypassing the need to interact with store personnel. But this might only be the start of what’s yet to come. 

Preparing for the Alpha Generation 

Although it may seem like it was only yesterday we were introduced to Generation Z, our society is now making room for the next generational wave, recently named “Generation Alpha”. Made up of 6 – 16-year olds, Gen-Alpha are set to once again change the ways in which retailers consider their targeting and marketing efforts, both online and in-store. There has already been significant research into the ways that Gen Alpha are predicted to impact retail, and that’s not so far from where you might think. According to various research, we will hit peak Gen-Alpha only five years from now. So, now is an exciting but essential opportunity for retailers to prepare for tomorrow’s shopper, as this new consumer group is set to drive the next desirable shopping experience. 

Insights from industry-leading groups have all revealed the influence that Generation Alpha will have within retail, particularly in inspiring a powerful high-street resurgence. Interestingly, although children of today are presumed to practically be born with a technological gadget in hand, mass survey results have shown that digital does not outweigh the physical just yet for Alphas. Multiple research studies have already shown that they strongly value the presence of physical retail in their shopping experiences. 

A quarter of ‘midi-Alphas’ (13 – 16-year olds) studied by Wunderman Thompson said they would rather purchase in a store than through their screens, and 75% of them in general enjoy the experience of going to an actual shop. They do, however, expect technology to increasingly enhance their future physical shopping experience, as 27% of the same study group desired further interactivity in stores. Retailers need to ensure they are balancing the physical and digital aspects of the retail experience, whilst being mindful they don’t overlook the ‘retailtainment’ factor that in-store offers by pursuing a digital-only model.  

Today, the Alpha generation are already so involved in the buying cycle in several ways. Alphas’ tastes, preferences and tech-savviness play a significant role in their parents’ purchasing decisions. Typically, they help their parents by viewing products and offering their opinions, they gather information about the product through reviews and they even add items directly into their parents’ baskets. NRF’s research has shown that a lot of parents involve their children in purchases because they will be users of the item and because their opinions matter to them.  

Only five years from now, retailers will be facing an entirely new and incredibly self-educated type of shopper. It’s essential for retailers to predict and react to these forthcoming desires in order to build loyalty with this group, to avoid neglecting the next generation of consumers before they even begin shopping. This means building an omnichannel solution, one that complements both the physical store and online, and is shaped by innovative technologies that maximise on convenience. By doing this, retailers will be better prepared to create an exciting, future-ready shopping experience that meets the expectations of today’s newest and most influential generation.

About Vista

For 25 years, Vista has operated as a retail technology support company and we are only too familiar with the evolution of tech in retail. Having implemented major technology transformations for retailers throughout this time, we have a deep-rooted understanding of the technology used within these retail environments and how to deploy and support systems throughout their lifecycles.

For more information, visit our website: vistasupport.com

JAMES PEPPER
james.pepper@vistasupport.com

To find out more about Vista and the services they provide to the retail industry, click here. 

This article was originally published in The Retailer, our quarterly online magazine providing thought-leading insights from BRC experts and Associate Members.