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Contrary to the belief that Gen Z is purely digital, data from 18,000 consumers shows they highly value in-store discovery. They will visit a physical store to find new items but will often complete the purchase online later. This re-frames brick-and-mortar's role from a point-of-sale to a top-of-funnel marketing channel.
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The generation most immersed in digital life is developing a powerful nostalgia for a pre-internet world they've only seen in media. This drives trends like 'digital defiance' and an appreciation for analog products. Brands can tap into this by offering experiences that feel authentic and non-digital.
For emerging brands, the path to retail shelf space is indirect. Instead of pitching buyers, focus on building a powerful direct-to-consumer (DTC) business and capturing the attention of younger demographics online. Retailers, desperate to attract these consumers, will then come to you.
Harley Finkelstein describes the future of retail as "agentic," where a consumer's journey seamlessly crosses platforms. For example, a journey could start on TikTok, move to a physical pop-up, and conclude with a purchase inside the game Roblox, moving beyond the simpler online vs. offline dichotomy.
Gen Z, raised on algorithmically curated feeds, craves authentic, self-directed discovery. OOH advertising meets this need by presenting brands in the real world, allowing for an organic interaction that breaks through their digital echo chamber.
Coterie treats its physical retail presence not just as a sales channel, but as a marketing tool. A well-placed product block acts like a billboard, driving discovery and funneling 10-12% of new customers back to their primary D2C subscription business.
The role of physical stores is shifting. They are crucial for omnichannel strategies, turning returns into valuable data collection and exchange opportunities. Furthermore, AI search is being deployed on associate devices to power "endless aisle" discovery in-store.
For Serena & Lily, an online-first brand, opening their first physical store was less about revenue and more about brand articulation. It was the first time they could see their products collected in one space, allowing them to define and build the brand's "mood and ethos."
Gen Z, the first digitally native generation, is leading a return to physical retail and analog experiences. They crave the pre-smartphone world of 2006, driving a comeback for shopping malls and other in-person activities as a rejection of an algorithm-driven life.
In an increasingly digital world, Gen Z is driving a resurgence in physical media like vinyl and CDs. This trend is not just about audio quality but a desire for tangible, nostalgic experiences that feel more "real" than streaming, even for eras they didn't personally experience.
Shoppers are approximately twice as likely to leave a brick-and-mortar bookstore with an unexpected purchase than if they had browsed online. The sensory experience and trusted recommendations from human booksellers create an environment for genuine discovery that algorithms, focused on past behavior, cannot replicate.
