New research into Gen Z shopping behaviour is challenging the assumption that younger consumers are moving away from physical retail, with fresh findings pointing instead to a more experience led, social, and situational relationship with stores.
The latest research from Portas and Snap, developed with YouGov, found that 51% of Gen Z consumers prefer going in store for the shopping experience rather than buying something instantly online. The report, called Retail Recharged, examines how younger shoppers use physical retail for discovery, identity, social connection, and memory making.
The findings suggest that convenience remains important, but does not explain the full role of stores. Research coverage of the report shows that 75% of Gen Z shoppers visit physical stores to see products in real life or try them on, while 71% value being able to see, touch, and try products in store. Some 58% enjoy taking time to discover new things while shopping, and 63% have purchased something mainly because of the experience around it.
Shopping is often social as well as transactional. Nearly six in 10 Gen Z consumers said they shop at least sometimes primarily to spend time with others rather than to buy something. That places stores inside leisure, content, community, and brand building strategies, not only distribution networks.
Separate research from Retail Economics and RSM UK underlines the commercial weight of the cohort. Gen Z is expected to influence more than £26bn in UK retail spend in 2025, rising to almost £40bn by 2035. The research also warns against treating Gen Z as a single uniform consumer group, identifying different behaviours and priorities beneath the broad generational label.
The findings complicate channel strategy for retailers. The old split between digital convenience and physical experience is increasingly inadequate. Younger consumers can use online channels for research, social influence, discovery, payment, comparison, and post purchase sharing, while still valuing stores as places to try, browse, meet, queue, experience, and create social content.
That does not mean every store should become an event venue. It means the role of store space needs to be more clearly defined. Some locations will need to prioritise speed, service, collection, returns, repairs, and availability. Others may need stronger merchandising, product trial, personalisation, community programming, visual identity, or content ready moments.
The research lands during a difficult period for retail economics. Inflation, wage costs, rent, business rates, energy bills, logistics costs, theft, and fragile consumer confidence continue to pressure margins. Retailers cannot afford experience investment that fails to convert into sales, loyalty, data, repeat visits, or stronger brand equity.
Store strategy therefore needs commercial discipline. Experience led retail is not decoration. It requires decisions about staffing, layout, technology, product availability, service standards, queue management, local marketing, inventory integration, and measurement. A store that encourages discovery but cannot fulfil demand may frustrate customers. A store designed only for transactions may miss the emotional and social value younger shoppers are signalling.
The findings also connect with changes in digital discovery. As AI moves deeper into grocery shopping, consumers are using tools to compare prices, research products, and support everyday purchase decisions. If digital discovery becomes more automated, physical stores may become more important as environments for trust, trial, and experience.
Retail media also sits in the background. As retailers build advertising businesses around customer data, loyalty, and commerce moments, stores can become part of the media environment. Digital screens, sampling, events, app integration, loyalty offers, creator activity, and product discovery can all connect brand marketing with physical behaviour. The risk is that stores become cluttered advertising spaces, weakening the experience that gives them commercial value.
Gen Z’s behaviour also changes the loyalty conversation. Younger shoppers are often described as less brand loyal, but the research suggests loyalty may be built differently: through relevance, participation, shared experience, social proof, and emotional value. Transactional loyalty schemes alone may not be enough if they are not connected to identity, community, or discovery.
There is also a workforce dimension. Experience led retail requires staff who can advise, host, solve problems, manage queues, support digital interactions, and maintain brand standards. That raises questions about training, pay, scheduling, retention, and store management at a time when retail employers are already facing labour cost pressure.
The strongest retailers are likely to segment store roles rather than apply a single format. Flagship locations, neighbourhood stores, shopping centre units, travel hubs, and convenience led formats will not need the same level of experience investment. The common requirement is clarity: why the store exists, what customer behaviour it supports, and how its contribution is measured.
The idea that Gen Z is an online only generation is becoming less useful. Younger consumers are digitally fluent, but they are not purely digital. They are using stores differently, expecting more from them, and connecting physical shopping with social identity and digital influence. Retailers that treat stores only as legacy property risk missing the chance to make them a more active part of customer strategy.
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