How Retailers Are Winning Gen Z

Gen Z and Gen Alpha are poised to have an enormous impact on convenience retail—and they already know exactly what they want.

During yesterday’s Education Session “What’s Convenient Now? Gen Z and Gen Alpha Weigh In,” industry leaders explored how younger consumers shop, what drives them to convenience stores and how retailers can earn their loyalty for years to come.

Gen Z alone represents an estimated $6 trillion in c-store spending over its lifetime, according to data presented by Jason Zelinski, session moderator and vice president for North American retail at NielsenIQ. Gen Alpha is expected to have similar influence, putting a combined $12 trillion in potential spending at stake over the next 30 years.

For retailers, capturing that spending starts with understanding just how intentional younger consumers are about their choices.

“They want what they want. They’re very decisive in their product selection,” said Weigel’s President and CEO Doug Yawberry. “And they control their family’s pocketbook … So you’ve got to have what they want.”

Interviews with Gen Z and Gen Alpha consumers revealed a mix of traditional convenience favorites and emerging priorities. Candy and snacks remain popular, particularly among younger shoppers, while “older” teen consumers cited energy drinks, protein shakes, hydration beverages and other functional products.

This creates a balancing act for retailers trying to provide variety within limited store space.

“We have to be a lot of things to a lot of people,” Maverik Inc. CEO Crystal Maggelet. “There are so many trends out there. Not only are there sports drinks … you’ve got more protein drinks and shakes and energy bars and flavor … You have to provide variety with all of these different brands and flavors and tastes to meet the consumer’s desire to always be on trend.”

Foodservice represents another significant opportunity. Younger consumers expect convenience but they also want quality, variety and products that reflect their increasingly global tastes.

“This is a very exciting time, a golden time, I think, for convenience stores if you’re in the food business in a meaningful way,” said NACS President and CEO Frank Gleeson. “There is no doubt there is higher demand. There is higher spending power … I would predict we’re going to see a lot of growth with the younger generation. They expect variety because they’ve traveled all over the world.”

But products are only part of the equation. Younger consumers interviewed for the session also mentioned enthusiastic employees, clean stores and restrooms, rewards programs, self-checkout and other elements that make visits easier and more enjoyable.

This means that even though younger consumers value technology, retailers cannot allow technology to overshadow the fundamentals of hospitality.

“Technology should enhance hospitality, not replace it,” TXB Stores CEO Kevin Smartt said. “Yes, technology is important, but we have to continue to execute on the basics, especially for this generation.”

At the same time, digital experiences must be intuitive. Gen Z and Gen Alpha have grown up with smartphones, digital payments and other technologies, making frictionless experiences an expectation rather than a novelty.

“They don’t want friction. They want easy,” Smartt said. “They want their apps to be easy. They want their rewards programming to be easy. They want their shopping experience to be easy.”