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Dive Overview:
A new survey of 2,233 U.S. adults conducted by Walmart and Morning Consult found that more than half (55%) of Gen Z shoppers have purchased an item online while browsing social media in the past six months, highlighting the importance of social commerce. In contrast, only 38% of shoppers overall did the same. While 44% of Gen Z shoppers start their shopping journey with an online search, roughly four in 10 start their shopping journey by browsing in-store (42%), visiting a retailer’s mobile app or website (40%), or checking social media (38%), the survey found. According to the survey, roughly half (49%) of survey respondents said they would buy more clothes if they had access to “better virtual try-on” tools.
Dive Insights:
Walmart’s report focused on understanding the era of adaptive retail, which the company defined in a statement as “a form of retail that delivers shopping experiences that are tailored to the exact wants and needs of customers.” To explore the topic further, the retailer commissioned Morning Consult to conduct its first study on the subject and has committed to revisiting the topic annually.
“We are in a new era of retail defined by highly personal shopping experiences, where each shopper decides how, where and when to get products. And context is key – the reason behind the purchase,” Suresh Kumar, Walmart’s global chief technology officer and chief development officer, said in a statement. “Retailers must anticipate shoppers’ needs, reduce decision making and enable highly personal experiences. The future of retail success will depend on how well they anticipate and meet these changing expectations.”
Walmart predicts that successful retailers will be those that can anticipate individual customer needs and deliver personalized offers at the right time.
The retail giant is trying to reach younger consumers by experimenting with new digital shopping experiences. In May, the company introduced Walmart Realm, an immersive shopping platform that lets shoppers browse virtual environments and buy products within them. The company also introduced the Walmart Discover Roblox experience last fall, giving players access to virtual departments across beauty, sports and pet categories on the gaming platform.
Walmart has also been changing its merchandise assortment with millennial and Gen Z shoppers in mind. New brands Walmart has recently debuted include oral care brands PlusUltra and Zimba, and personal care brand CleanAge. This summer, the retailer brought back one of its largest Gen Z-targeted private labels, No Boundaries, and relaunched the label in Roblox’s Walmart Discovered experience.
Walmart-owned Sam’s Club has seen a surge in its Gen Z and millennial customer base in recent years. Over the past two years, Gen Z Sam’s Club membership has surged 63%, while millennial membership has increased 14%. Hana Ben-Shabbat, founder of Gen Z Planet, attributes the retailer’s growth in part to “seamless integration between online and offline.”
