LAS VEGAS – Americans between the ages of 13 and 29, also known as Gen Z, represent approximately $6 trillion in store spending over the years, according to data presented by Jason Zelinski, vice president for retail-North America, NielsenIQ, Chicago. Young shoppers tend to go to stores to spend their chosen money on products that are not available at home, items that are not provided or gatekeepers during shopping. These items include energy drinks, protein bars and candy.
He added that Gen Alpha – children who are now between 1 and 13 years old – are expected to have the same impact as Gen Z once they start earning; However, it should already be on marketers’ radar, because teenagers already know what they want when they walk into a store.
Zelinski moderated a panel focused on how Gen Z and Alpha will affect the future of retail.
“They want what they want,” said Doug Yawberry, a panelist and president and chief executive officer of Weigel’s, a grocery store based in Powell, Tenn.
The sessions included videotaped interviews with Gen Z and Gen Alpha consumers. These comments underscore the importance of grocery stores, especially when so many people live in homes where groceries are often delivered. Impulse items that you want are not available at home, so the store is a destination for many. One Gen Zer said he expects the store where he stops to have a wide selection of Monster brand beverage flavors to satisfy his cravings for the day.
It is not an easy task, because department stores are small format retailers with limited space. They recognize the need for variety, but it’s a balancing act. Accommodating changing consumer tastes creates limited edition offerings with special displays of attractive merchandise selections.
“We need a lot of things for a lot of people,” said Crystal Maggelet, CEO and chairman of FJ Management Inc., which owns the Maverik chain of stores, and is headquartered in Salt Lake City. “Young shoppers are constantly seeing different things on social media, and they want to try them. We have to offer them in our stores, and quickly.”
This is where real-time category management becomes a powerful tool for retailers and brands.
“There are a lot of trends out there,” Maggelet said. “You have to provide variety with all these different brands and flavors and tastes to meet the consumer’s desire to always be on trend.”
Real-time category management is essential for retailers and brands looking to succeed in the convenience channel.
| Photo: ©MURDOCKSIMAGES – STOCK.ADOBE.COMAn opportunity to grow the store is food service. Gen Z and Gen Alpha have always known convenience stores as another option for fast-casual restaurants for breakfast, lunch and dinner, while older consumers grew up with a limited convenience store menu of nachos, hot dogs and the occasional slice of pizza. Today, the store’s menu includes made-to-order poke bowls, an automated smoothie machine and a hot food bar.
“I predict we will see a lot of growth with the younger generation,” said Frank Gleeson, president and CEO of the National Association of Convenience Stores, Alexandria, Va. “He expects different things because he has traveled all over the world.”
Gleeson’s statement supports what Suzy Badaracco, president of Culinary Tides Inc., Oakland Park, Fla., said in an educational session titled “Food and beverage trends that make you feel good in 2027.”
Convenience, emotional reward, exploration, value and well-being all shape purchasing decisions as we enter 2027, Badaracco said. Consumers, especially younger ones, continue to explore new cuisines and ingredients, providing innovation opportunities for convenience food and beverage formulators.
Some of the most popular flavor profiles in the convenience channel are based on citrus, chili and global spice profiles. He cites hot honey, mango habanero and enhanced barbecue as examples, and emphasizes that sauces are a low-risk way to introduce new flavors.
“Innovation should focus on making inventions approachable,” he said.