PUBLISHED DATE: 2023-06-16 02:58:56
Reinventing Grocery for Gen Z | Publicis Sapient Insight
Reinventing Grocery for Gen Z
A light, ethical, accessible and dataful experience for a generation of digital natives
Julian Skelly
Let's start a conversation
For today’s shoppers, shipping matters.
Waiting for delivery is particularly unbearable for Generation Z consumers, who are accustomed to instant gratification and 24/7 availability through the internet. As these digital natives take on a larger share of consumer spending, their preference for online shopping will impact retailers of all types, including grocers—amplifying the challenges and the opportunities of today’s online grocery landscape.
For example, shipping and delivery services, which are currently unprofitable and unstainable for grocers, will become critical not only for improving e-commerce profitability but for driving customer satisfaction.
Who is Gen Z?
Gen Z, defined as those born after 1998, will command nearly 40 percent of all consumer shopping by 2020. Nine out of ten parents report that their Gen Z children influence household spending to the tune of $116 billion to $333 billion per year. Gen Z doesn’t like to wait, least of all for the local supermarket. If traditional grocers want to serve this growing segment, they must anticipate the different challenges it brings. They will need to build experiences and propositions that align with Gen Z values and behaviors.
Here, we explore four key experience principles—light, ethical, accessible and dataful (LEAD)—and how established grocers can harness them to capture younger consumers:
Applying LEAD Principles to Gen Z
-
Light Attribute:
If a brand wants to get in touch with Gen Z, it has 8 seconds to do it. This generation is notoriously impatient with anything from slow-loading websites to long lines or two-week shipping windows.
Action: Focus on removing friction, with lightweight solutions that can be rapidly tested with Gen Z customers and scaled with the early insights. Consumer expectations are elevated – fast, free delivery, seamless in-store experiences, and the ability to get the best price and service at any point. This shopping experience is the new normal.
-
Ethical Attribute:
Gen Z is driving brands to pay more than lip service to ethics and sustainability. A recent study reveals that seven in ten Gen Z respondents say they try to buy from companies they consider ethical, while almost two-thirds (65 percent) like to learn the origins of the products they are buying.
Action: Build transparency into the supply chain, with the ability to expose provenance, cost drivers and product history. Provide shoppers with information at every step, to allow them to make informed choices based on clear pricing models and competitor price-matching.
-
Accessible Attribute:
More than half of Gen Z consumers spend 10 hours or more online each day, across all digital devices, and 98 percent own a smartphone.
Action: Look across the end-to-end customer journey to find moments where friction can be eliminated from the experience. Use technology to reduce the time for product selection and checkout, allow order modification as late as possible and know your customer, making useful reminders and recommendations. And don’t forget to enhance the digital tools that employees have to enable a faster and better customer service.
-
Dataful Attribute:
Gen Z has access to and fluency with large quantities of data. Shopping is a true multichannel experience, with price comparison, real-time reviews and social sentiment integrated into even the most straightforward of purchases.
Action: Power all experiences with data, connecting the digital and physical into an omnichannel system. While a digital footprint has been somewhat easy to understand, physical experiences are more opaque. Incorporating sensors, cameras and motion tracking technology can help retailers better assess interest and intent, while positioning and time data help the retailer gauge performance based on the item location within the store. Blending the data from across channels can help identify patterns and connections that can lead to even better predictive modeling capabilities for demand forecasting, fulfillment and product marketing.
By using LEAD principles, grocers can create omnichannel experiences that appeal to Gen Z shoppers, building loyalty and customer satisfaction. The stickiness of these experiences will help grocers find propositions that shoppers will subscribe to and pay for. This will be critical in creating a profitable online grocery model—and that is a charge worth leading.
Julian Skelly
Head of Retail, EMEA + APAC
Let's connect
Relevant Links
- E-commerce and Retail Transformation: Strategies for Profitability and Enhanced Customer Experience
- Experiencias Conectadas en el Retail: El Futuro de las Tiendas en América Latina (LATAM)
- Realidades Regionales del Retail: Cómo la Transformación Digital Está Redefiniendo el Comercio en América Latina (LATAM)
- Building Resilient Omnichannel Strategies: Lessons from Post-Pandemic Retail Transformation
- Bleisure in Retail: How Retailers Can Capitalize on the Blurring of Business and Leisure Travel
- Realidades Regionales del Retail: Cómo la Transformación Digital y el Omnicanal Redefinen el Éxito en América Latina (LATAM)
- Transformación Omnicanal en el Sector de Supermercados: Claves para el Éxito en América Latina (LATAM)
- La rentabilidad en la era digital: Estrategias para la gestión de devoluciones en el e-commerce latinoamericano (LATAM)
- Transformación Omnicanal en el Sector de Supermercados en América Latina: Claves para el Éxito en México (LATAM)
- Building a Resilient Omnichannel Retail Strategy
- Omnicanalidad en el Retail de Lujo: Lecciones para América Latina (LATAM)
- Regional Holiday Retail Trends: How EMEA and APAC Are Shaping the Future of Omnichannel Shopping
- Regional Retail Realities: How Shopper Expectations and Digital Transformation Differ Across North America, Europe, and APAC
- Regional Strategies for E-Commerce Shipping: North America vs. Europe
- Transformación Omnicanal en el Retail de Especialidad: Impulsando el Éxito en América Latina (LATAM)
- Transformación Digital en Productos de Consumo y Retail: Lecciones para América Latina (LATAM)
- The Digital Signage Opportunity in Grocery—Unlocking Omnichannel Experiences and Data-Driven Personalization
- Regional Retail Realities: How Shopper-First Mandates Play Out Across North America, Europe, and APAC
- 4 Ways Livestream Shopping Can Elevate Retail E-Commerce
- Reopening Retail Stores With a Digital Assist
- Contactless Convenience: The Future of Fuel and C-Store Retail in a Digital-First World
- Transformación de la Ingeniería en el Retail Latinoamericano: Claves para el Crecimiento y la Resiliencia (LATAM)
- Retail Store of the Future Animation
- 7 Ways to Modernize Retail Point of Sale Systems
- Omnichannel Transformation in Specialty Retail: Lessons from Apparel to Niche Markets
- Omnicanalidad en el Retail de Alimentos en América Latina: Claves para el Éxito en la Era Digital (LATAM)
- Transformación de la Ingeniería en Retail: Modernización de Plataformas y Equipos para el Éxito Omnicanal en América Latina (LATAM)
- El futuro del retail en América Latina: resiliencia, tecnología y el nuevo consumidor (LATAM)
- Optimización de Devoluciones en América Latina: Estrategias para la Rentabilidad y la Fidelización (LATAM)
- Realidades Regionales del Retail: Cómo la Transformación Digital Está Redefiniendo el Comercio en América Latina (LATAM)
- Optimización de Devoluciones en América Latina: Una Oportunidad Estratégica para el Retail (LATAM)
- Canales Digitales Emergentes: La Nueva Ola de Omnicanalidad en América Latina (LATAM)
- Realidades Regionales del Retail: Cómo las Expectativas del Consumidor y la Transformación Digital Redefinen el Comercio en América Latina (LATAM)
- Tendencias clave para el retail latinoamericano en la temporada de fiestas: Preparando el futuro del comercio (LATAM)
- Digitizing the In-Store Experience: Lessons from the Nordics
- Transformación Omnicanal en el Sector de Supermercados: Claves para el Éxito en América Latina (LATAM)
- What Does the Bezos Departure Mean for Retailers?
- Contactless Solutions for Urban Retailers: Navigating High-Density, High-Demand Environments
- Regional Retail Recovery: How Digital Transformation Differs Across Markets
- L’omnicanal en Europe : Innover pour une résilience durable dans le retail (Europe)
- La revolución de las devoluciones: Cómo los retailers latinoamericanos pueden convertir un desafío en ventaja competitiva (LATAM)
- Réalités régionales du commerce de détail : Comment la transformation digitale façonne l’avenir du retail en Europe (Europe)
- La digitalización de la experiencia en tienda: Lecciones nórdicas y su relevancia para el retail en México (LATAM)
- Regional Retail Resilience: How E-Commerce Strategies Differ Across North America and Europe
- Building Resilient Omnichannel Strategies: Lessons from Post-Pandemic Retail Transformation
- Modernización de los Sistemas POS en el Retail Latinoamericano: Oportunidades y Desafíos para Ejecutivos de la Región (LATAM)
- Digitizing the In-Store Experience: Nordic Innovations in Omnichannel Retail
- The Future of Unified Commerce: Integrating Physical and Digital Retail for Profitability
- How Retailers Can Cash In On a Click-and-Collect Future
- Industry Deep Dive: POS Modernization for Specialty Retail—Personalization, Loyalty, and Omnichannel Journeys
- Modernización de los Sistemas de Punto de Venta (POS) en América Latina: Impulsando el Futuro del Retail (LATAM)
- Social Commerce in Grocery: Navigating Impulse and Routine in Food Retail
- The Rise of 'Bleisure': How Retailers Can Capitalize on the Blurring of Business and Leisure Travel
- Comercio Unificado y Personalización Omnicanal: El Futuro del Retail en América Latina (LATAM)
- Transformación Omnicanal en el Sector de Supermercados: Claves para el Éxito en América Latina (LATAM)
- Livestream Shopping in Grocery: Regional and Seasonal Strategies for Success
- Transformation omnicanale dans le retail spécialisé : Leçons pour l’Europe (Europe)
- Regional Retail Recovery: How Digital Transformation Differs Across North America, Europe, and APAC
- Construire des Stratégies Omnicanales Résilientes : Leçons de la Transformation du Commerce de Détail Post-Pandémie (Europe)
- Regional Retail Realities: How Shopper-First Mandates Play Out Across North America, Europe, and APAC
- Life After COVID-19: What's Next for Retail
- Commerce de détail en Europe : Naviguer dans la nouvelle ère de l’omnicanalité et de la rentabilité (Europe)
- The Future of Holiday Returns: Turning a Cost Center into a Loyalty Driver
- La Nueva Realidad de las Fiestas: Cómo los Retailers Latinoamericanos Pueden Prepararse para la Temporada de Mayor Desafío (LATAM)
- Modernización de los Sistemas de Punto de Venta en América Latina: Clave para la Experiencia Omnicanal y la Competitividad (LATAM)
- Publicis Sapient's Digital Life Index: How Retailers Can Adapt to Changing Customer Behaviors
- Réalités régionales du commerce de détail : Comment les attentes des consommateurs et la transformation digitale façonnent l’avenir du retail en Europe (Europe)
- Urban Click-and-Collect: Tailoring Omnichannel Fulfillment for City Retailers
- La gestión de devoluciones en la era digital: Rentabilidad, tecnología y experiencia del cliente en América Latina (LATAM)
- Regional Retail Realities: How Digital Transformation Differs Across North America, Europe, and APAC
- Realidades Regionales del Retail: Mandatos Shopper-First y Transformación Digital en América Latina (LATAM)
- Realidades Regionales del Retail: Cómo la Transformación Digital Está Redefiniendo el Comercio en América Latina (LATAM)
- La Nueva Realidad de las Devoluciones en Retail: Estrategias para América Latina (LATAM)
- Realidades Regionales del Retail: Cómo la Transformación Digital Está Redefiniendo el Comercio en América Latina (LATAM)
- Preparando el Retail Latinoamericano para la Temporada de Fiestas: Estrategias para un Éxito Sostenible (LATAM)
- Recuperación Regional del Retail: Cómo la Transformación Digital Difiere en América Latina (LATAM)
- Innovating with Startups in Retail—Lessons and Opportunities for Retailers
- Modernización de los Sistemas POS en el Retail Latinoamericano: Oportunidades y Desafíos para Ejecutivos de la Región (LATAM)
- Regional Retail Realities: How Digital Transformation Differs Across North America, Europe, and APAC
- Grocery Transformation for Gen Z: A Regional Perspective
- Temporada de Fiestas en el Retail Latinoamericano: Preparando tu Negocio para el Nuevo Consumidor Digital (LATAM)
- Cómo los Retailers Latinoamericanos Pueden Dominar la Temporada Alta de Compras (LATAM)
- Australian Retail Deep Dive: Navigating Economic Uncertainty and Digital Disruption
- Regional Omnichannel Retail Realities: North America, Europe, and APAC Compared
- El futuro del retail en América Latina: Innovación, resiliencia y el nuevo consumidor digital (LATAM)
- The Future of Retail: Apocalypse or Renaissance
- Realidades Regionales del Retail: Cómo la Transformación Digital Está Redefiniendo el Comercio en América Latina (LATAM)
- Realidades Regionales del Retail: Claves para la Transformación Digital en América Latina (LATAM)
- La transformación digital del retail urbano: Innovación y eficiencia para el supermercado moderno en América Latina (LATAM)
- Next in Retail Podcast | Episode 6: Retail's New Normal
- Temporada de Fiestas en Retail: Claves para el Éxito en América Latina (LATAM)
- Sector Spotlight: How COVID-19 Accelerated Digital Transformation in Grocery Retail
- La Transformación Digital de la Industria de Supermercados en América Latina: Retos y Oportunidades (LATAM)
- Transformación Digital en el Retail de Alimentos: Impulsando el Futuro del Supermercado Latinoamericano (LATAM)
- Contactless Collection in Fuel and Convenience Retail: Transforming the Customer Experience at the Pump and Beyond
- Four Ways Retailers are Digitizing the In-Store Experience
- Data-Driven Holiday Retail: How Digital Signage and Real-Time Analytics Can Transform Peak Season Performance
- Australian Retail Transformation: Navigating Economic Uncertainty and Digital Disruption
- Bridging the Impulse Gap: How Grocers Can Recreate In-Store Discovery Online
- Transformación Omnicanal en el Retail Especializado: Lecciones para Ejecutivos Latinoamericanos (LATAM)
- Building Resilient Omnichannel Strategies: Lessons from Post-Pandemic Retail Transformation
- Regional Differences in Gen Z Grocery Shopping—How Local Culture and Regulation Shape Digital Experiences
- La transformación digital del retail en América Latina: Claves para el éxito en un entorno desafiante (LATAM)
- Regional Retail Realities: How Shopper-First Mandates Play Out Across North America, Europe, and APAC
- Realidades Regionales del Retail: Impulsando la Transformación Digital en América Latina (LATAM)
- Transformación Omnicanal en el Sector de Supermercados: El Futuro de la Experiencia de Compra en América Latina (LATAM)
- Bleisure in Retail: How Retailers Can Capitalize on the Blurring of Business and Leisure Travel
- E-commerce and Retail Transformation: Strategies for Profitability and Enhanced Customer Experience
- Regional Deep Dive: Contactless Collection and Returns in EMEA Retail
- The Role of Micro-Fulfillment Centers in Next-Generation Contactless Collection
- Digitalización de la Experiencia en Tienda: Innovaciones Nórdicas y su Relevancia para el Retail en México (LATAM)
- Cuatro Formas en que los Minoristas Están Digitalizando la Experiencia en Tienda: Implicaciones para México (LATAM)
- Regional Retail Realities: How Shopper Expectations and Digital Transformation Differ Across North America, Europe, and APAC
- Regional Retail Resilience: How E-Commerce Strategies Differ Across North America and Europe During Disruption
- Grocery Store of the Future Animation
- El Futuro de la Experiencia en Tienda: Transformando el Retail en América Latina (LATAM)
- Transformación Digital en el Retail Latinoamericano: Claves para el Éxito en un Mercado en Evolución (LATAM)
- La transformación digital del retail urbano: Innovación y oportunidades para América Latina (LATAM)
- Regional Retail Recovery: How Digital Transformation Differs Across North America, Europe, and APAC
- Regional Retail Realities: How Digital Transformation Differs Across North America, Europe, and APAC
- Regional Retail Realities: How Shopper-First Mandates Play Out Across North America, Europe, and APAC
- Urban Retail Transformation: Digital Innovation for City Shopping
- Réalités régionales du commerce de détail : Comment la transformation digitale façonne l’avenir du retail en Europe (Europe)
- Integrating POS Data with In-Store Digital Signage: Creating the Connected Store of the Future
- La Modernización de Plataformas en el Retail Latinoamericano: Clave para la Agilidad y el Crecimiento (LATAM)
- Integración de POS y Señalización Digital en el Retail Latinoamericano: El Camino hacia la Tienda Conectada (LATAM)
- A Fitness Regimen for Retailers
- Estrategias Omnicanal Resilientes: Lecciones para el Retail Latinoamericano Post-Pandemia (LATAM)
- El Futuro de la Temporada de Fiestas en el Retail Latinoamericano: Estrategias para un Éxito Omnicanal (LATAM)
- Transformación Digital en el Retail de Alimentos: Oportunidades y Desafíos para América Latina (LATAM)
- Transformación Omnicanal en el Sector de Supermercados en América Latina: Claves para el Éxito en un Mercado en Evolución (LATAM)
- Transformación Omnicanal en el Retail Especializado: Lecciones para América Latina (LATAM)
- Digitizing the In-Store Experience: Nordic Innovations in Omnichannel Retail
- Exploring Urban Retail Transformation: How Digital Innovation is Shaping City Shopping Experiences
- Bridging the Impulse Gap: How Grocers Can Recreate In-Store Discovery Online
- Transformación Omnicanal en el Sector de Supermercados: Claves para Ejecutivos en América Latina (LATAM)
- Transformación Digital en el Retail Latinoamericano: Claves para el Éxito en un Mercado en Evolución (LATAM)
- Regional Retail Recovery: How Cyber Monday and Holiday E-commerce Trends Differ Across North America, Europe, and APAC
- Soluciones de Recolección Sin Contacto: El Futuro del Retail Urbano en América Latina (LATAM)
- Integrating Livestream Shopping with Social Commerce: Building a Unified Omnichannel Experience
- How Retailers Can Champion the Holiday Season Rush
- Tendencias clave para el retail latinoamericano en la temporada de fiestas: Preparando el futuro del comercio (LATAM)