Where Does Gen Z Shop?
New mobile location data report from inMarket reveals which businesses are winning and losing with young consumers.
As marketers, we’ve spent the past decade trying to figure out millennials — those tricky digital natives who make up the majority of the current 18–35 demographic. Today, focus is shifting to Generation Z — those born after 1995 — who will surpass millennials as the largest generation by 2020.
For those who are unfamiliar, Gen Z consumers live multi-screen lives — moving seamlessly from mobile to desktop and expecting brands to keep pace. These digital natives don’t know a world without the internet, and as such expect information to be readily available and at their fingertips. That includes while out shopping in the real world.
At inMarket, with first-party location data from over 50 million opted-in consumers, we’re constantly looking at foot traffic trends among various business categories. With Gen Z coming of age, we’re looking at which businesses are attracting young consumers more frequently than others — and which might be left out in the cold.
Here are our business power rankings based on frequency of visits by Gen Z thus far in 2017:
Jimmy John’s is the most attractive business to Gen Z, pulling in young customers 49% more frequently than other age groups. In fact, four out of the top five overall performing businesses with Gen Z are fast food chains Chipotle, Panda Express and Chick-fil-A. Retailers like UGG, The North Face and Payless are also performing well — though the latter is still struggling in terms of store closures in 2017.
While this generation will surely bank online-first, brick-and-mortar banks like Wells Fargo and PNC are over-indexing with Gen Z — which bodes well as both look to increase their young customer base.
Contrarily, legacy retailers Target and Walgreens are both attracting Gen Z consumers 15% less frequently than average, according to inMarket mobile location data in 2017.