Why Amazon might have an issue courting Gen Z grocery shoppers

Younger generation seeks in-store experiences the e-commerce giant only delivers on a small scale

It has its sights on the grocery market, but new research suggests that Amazon is having trouble appealing to Gen Z consumers, a demographic anticipated to make up 40% of all consumers by 2020. The reason? The in-store experience.

While about eight in 10 millennials have purchased from the Seattle-based e-commerce giant in the past 30 days, barely more than six in 10 Gen Zers have done the same, says “A Marketers Guide to Reaching Every Consumer Generation,” a new report from Yes Lifecycle Marketing. The only generation showing lower numbers is baby boomers at 54%.

Millennials, the report notes, value the benefits of the Amazon Prime subscription program most, corresponding with their preference for loyalty messaging and programs. Meanwhile, baby boomers value Amazon’s convenience and product selection.

When it comes to Gen Zers (aka “centennials”), however, those who don’t shop Amazon appear to buy from other retailers due to the experience those stores offer. Almost one in three (31%) shoppers in this generation shop other retailers because they enjoy the in-store shopping experience – more than any other generation.

While Amazon might own physical grocery stores with Whole Foods and Amazon Go (which is currently just one store), it has yet to operate grocery stores across the country that deliver a true "Amazon experience."

READ: Amazon’s checkout-less store is finally a go

“For centennials, messaging about nearby stores and in-store offers should be included in Snapchat and Instagram content and based on real-time location,” the report recommends to retailers seeking to appeal to this generation.

This article appeared at ProgressiveGrocer.com.

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