In this edition, we explore how Generation Z is reshaping the retail landscape. From their emphasis on stability over wealth to their preference for sustainable, tech-enhanced shopping experiences, Gen Z is redefining what consumers expect from brands.
Plus, we dive into early holiday shopping trends, with major retailers like Amazon and Target launching promotions ahead of schedule.
Discover how evolving consumer behaviors and rising concerns around inflation and in-store shopping are influencing holiday spending this year.
Today's Rundown
- Labor Day Recap: See how your store compared to the industry average over Labor Day Weekend this year.
- Trakwell Feature of the week: Learn how to save time with open floor plan and quick entry.
- OUT NOW: Sign up to receive the Q2 2024 Home Furnishing Benchmark Report.
Market Watch
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Mattress Industry
Trakwell Feature of the Week
This is where each week we highlight a feature within Trakwell. This week’s feature is: Open Floor Plan and Quick Entry
Open Floor Plan
When your store gets busy, it’s easier said than done to stick to the rotation of the upboard.
When Open Floor Plan is enabled, every customer that walks through the door is automatically unassigned. This way, any salesperson can help a customer without any confusion over who’s responsible.
Quick Entry
When QUICK ENTRY is enabled, Trakwell will only ask a salesperson one question: Did the interaction with the customer end in a sale, no-sale, or potential sale?
Within less than 10 seconds of your salesperson’s time, Trakwell calculates sales conversion, time with customers, and the breakdown of sale/no-sale/potential sales.
Report: How Gen Z is redefining retail
Generation Z, born between 1998 and 2012, is distinct from millennials and possesses unique characteristics that set them apart as a truly global generation. Rachel Bonsignore, vice president of market research firm NIQ, explains that Gen Z grew up amid significant world events like 9/11, the Great Recession, and COVID-19, though without fully developing an adult awareness of these events. Their upbringing, shaped by watching their Gen X parents navigate tough economic times, has made them more aware of the competitive and volatile world they live in, especially regarding education and career opportunities.
Unlike previous generations, Gen Z places less emphasis on becoming rich or holding powerful positions and more on achieving stability and balance in uncertain times.
Their shopping habits reflect this, as they are highly influenced by social media and value sustainability. They enjoy both online and in-store shopping, seeking fun and rewarding experiences. Despite being tech-savvy, their relationship with technology is less about understanding it deeply and more about enjoying seamless experiences. Retailers must recognize these values to effectively connect with this growing consumer base.
Holiday Shopping Starts Early This Year
As the holiday shopping season nears, retailers like Amazon and Target are pushing promotions earlier than ever, with Amazon announcing its Prime Big Deal Days in October, just three months after its main Prime Day event. Target is also bringing back its Circle Week next month, positioning these sales as opportunities for consumers to get an early start on holiday shopping. Gartner reports that consumers are already engaging with these late-summer promotions, indicating a shift in shopping behavior. According to Kassi Socha, director analyst at Gartner, successful marketing strategies should begin in Q1, with execution launching in Q3, allowing retailers to refine consumer insights and better meet customer expectations.
Gartner’s June survey of 327 people revealed several key trends in holiday shopping behavior. 20% of respondents plan to increase online shopping this year, driven by the perception that online prices are better than in-store options. Additionally, 60% expressed concerns about in-store shopping, citing higher prices, inventory, and security issues. Hybrid shopping services like buy online, pick up in-store (BOPIS) and same-day delivery are also gaining popularity, with 57% planning to use these options.
Consumers are also seeking more flexibility with return policies, especially younger shoppers, with over 70% indicating they would be more likely to purchase if offered an extended return window. Despite these changes, only 14% plan to spend more this holiday season, with 64% maintaining their spending and 21% reducing it, largely due to inflation and lingering supply chain issues.
Retail Snippets
Labor Day Recap: See how your store compared to the industry average over Labor Day Weekend this year.
More to Come: Census sales data shows households ‘have the underpinnings to spend’.
Report: Holiday online sales expected to increase 2%, to $1.19 trillion.
Random Irrelevance
Report: OpenAI says it’s fixed the issue where ChatGPT appeared to be messaging users unprompted.
America Has Spoken: This is the best grocery store in the country.
First Look: Neuralink brain implant wins an FDA nod to tackle blindness.
