GEN Z: PHYSICAL NOT DIGITAL.

According to a recent study conducted by College Group, when it comes to shopping for shoes, both Gen Z and millennials still show a preference for retail stores. The study surveyed over 3,000 consumers from different generations to examine their shopping habits.

Among respondents from Gen Z, millennials, Gen X, and boomers, big box stores like Target and Walmart, as well as shoe retailers such as Shoe Carnival, Famous Footwear, and Foot Locker, emerged as the top choices for purchasing shoes. The younger generations, in particular, displayed a stronger inclination towards shopping at dedicated shoe retail stores. On the other hand, older generations like Gen X and boomers exhibited a more balanced distribution across various channels, including big box stores, online platforms, and department stores.

In addition to the aforementioned findings, the survey revealed that the majority of consumers appreciate a hybrid approach to clothing and shoe shopping, combining both online and physical stores. The study found that 55 percent of millennials, the highest percentage among all generational groups, prefer to shop both online and in stores. Interestingly, across all generations, the lowest percentage of consumers expressed a preference for exclusively shopping online. This indicates that a significant portion of shoppers from various age groups still value the in-store experience when it comes to purchasing clothing and shoes.

The data further revealed that approximately one-third of millennials enjoy the practice of window shopping in physical stores and then making their actual purchases online. In contrast, only 14 percent of boomers expressed a similar inclination.

These findings come at a time when retailers are showing optimism in the future of physical retail, following a period during the pandemic where e-commerce experienced significant growth. As the retail industry recovers, companies such as Academy Sports + Outdoors, Dollar General, and Belk are implementing ambitious plans to expand their physical store presence. Simultaneously, other retailers are focusing on developing robust in-store strategies that captivate consumers and provide unique experiences.

During an early May call with analysts, David Simon, President and CEO of Simon Property Group, emphasized the strong demand from tenants and the preference of shoppers to visit brick-and-mortar stores, stating, "Tenant demand is excellent, and brick-and-mortar stores are where shoppers want to be."

The Collage Group survey also highlighted that nearly half of the consumers (46 percent) have either enrolled or expressed interest in enrolling in footwear or apparel rewards programs. Millennials, with a rate of 51 percent, were the most likely to enroll in such programs. In contrast, boomers demonstrated the least interest in rewards programs, with only 37 percent indicating a willingness to participate.