by Brick-and-mortar stores face continued pressure as many in this age group prefer shopping and spending their money online
HIGH POINT — Our latest Consumer Insights Now research, sponsored by Bread Financial, focusing on the Gen Z consumer has a mix of good news and not-so-good news for brick-and-mortar retailers.
First the good news: Two-thirds say they prefer to shop for furniture in physical stores. That said, here’s the negative for those same stores: Half plan to purchase online as some 61% believe furniture there is less expensive. And as many in this 18-29 year old age group are strapped for cash, that’s a harsh reality for retailers trying to compete for their attention and purchases.
Plus, many see online shopping as more convenient, another tough reality for brick-and-mortar stores during a time of increased gas prices.
Another advantage based on comments shared with Home News Now? A wide selection offering thousands of SKUs.
“Online shopping means more variety,” one respondent noted.
“I like the convenience of shopping from home and having it delivered,” another said.
On that same note, Amazon is their retailer of choice, with 55% saying they’ll shop on Amazon for furniture in the next several months, compared with 49% who said they will shop in a physical store. By category, 38% surveyed have purchased a sofa on the platform, 33% for occasional tables, 32% for primary bedroom, 26% for mattresses and lamps, and 21% for outdoor furniture.
Yet these shoppers also indicate they prefer an omnichannel approach, with 52% planning to buy furniture in-store or online vs. 24% each for in-store only and online only.
Brick-and-mortar retailers can see this split-down-the-middle viewpoint as a glass half empty or the glass half full. Which of course allows them to play upon their strengths.
For example, 77% of those surveyed believe furniture sold in the store is higher quality. They also believe it is the best place to see, touch and feel the furniture while also being able to test it for comfort and visualize it in their home.
This offers retailers a marketing opportunity that many online resources (with the exception of Wayfair, which has physical stores) don’t have: the ability to see and feel it in person. Most retailers also do a good job showcasing the product in different room settings, thus allowing the customer the ability to imagine what it might look like in their living room, bedroom or dining room.
And either before or after they visit the store, they also can search a wide variety of items on the dealer’s website. Some 35% of those surveyed said they shop/search a retailer’s website, another tool that helps them compete with online giants such as Amazon and Wayfair. By comparison, 24% did research on manufacturer websites, many of which have a built-in search engine driving consumer traffic to retailers where their product is sold.
The report also sheds light on which categories these consumers plan to buy in the months ahead with sofas and sectionals topping the list at 57%, followed by primary bedroom, 40%; lamps, 33%; area rugs, 32%; occasional tables, 31%; entertainment furniture, 27%; recliners, 26%; mattresses for the primary bedroom, 25%; dining furniture, 24%; and office furniture, 21%. Other categories can be seen in the chart below.
Additional insights in the survey include their attitudes about shopping for furniture along with various online activities ranging from watching short videos on YouTube and Instagram to using AI for research purposes.
The message for retailers is clear. While online resources are indeed competitive, there are certain advantages a physical store has among these consumers. How do you plan to capitalize on those advantages? Feel free to share your thoughts with Tom Russell at tom@homenewsnow.com or Kathryn Greene at kathryn@homenewsnow.com.
Below is a schedule of this season’s Consumer Insights Now reports.
+ Sept. 14 – Gen Z Overview
+ Sept. 21 – Gen Z Buying Habits and Attitudes
+ Sept. 28 – Gen Z Furniture Shopping
+ Oct. 5 – Gen Z Furniture Buying Part 1 (Focusing on the appeal of Amazon and trading up to better quality furniture)
+ Oct. 12 – Gen Z Furniture Buying Part 2 (Focusing on known furniture brands, financing options and working with designers)
