Zillennials, consumers born between 1991 and 1999, are leading the charge in the digital shopping era. While they are digital natives well-versed in online shopping, they also regularly shop in physical stores.

According to PYMNTS Intelligence report “Zillennials Say Let the AI Do the Shopping,” more than 80% of this generation desires artificial intelligence features to enhance their in-store shopping experiences. The fusion of online convenience with the appeal of physical stores defines their approach, with AI playing a role in shaping this click-and-mortar shopping trend.

Elevating In-Store Shopping Experiences With AI Integration

Zillennials are eager to enhance their shopping with AI-driven tools. Consider 81% of this cohort said personalized recommendations and digital innovations influence their shopping decisions. More than 45% reported that creative in-store experiences greatly impact their choice of merchant.

The report found that 23% of zillennials listed personalized promotions as a most-wanted feature, while 77% of zillennials, 76% of millennials and 74% of Generation Z consumers said they want to experience AI-enhanced features like tailored discounts and real-time suggestions during their in-store visits.

Zillennials Balance Online and In-Store Shopping Preferences

Zillennials enjoy both online and in-store shopping, blending digital convenience with the tactile benefits of physical stores. Around 75% of zillennials reported shopping both online and in person in the past month. They tend to favor online shopping for travel and transportation needs and physical stores for groceries.

According to the report, 30% of zillennials enjoy using both channels for non-grocery retail products, underscoring the importance of the click-and-mortar approach. Despite their online shopping habits, 61% of zillennials prefer ordering consumer goods online, either as needed or through subscriptions, while 39% still prefer in-person retail experiences.

Revitalizing In-Store Shopping With Digital Features for the Modern Consumer

Zillennials expect a modern, digital-inspired in-store shopping environment. Many consumers prefer in-store shopping for its lack of additional costs, control over selection and ease of item exploration. However, the shopping experience in physical stores lags behind online shopping, with 3.1% of zillennials citing a pleasant in-store experience as a key reason for preferring brick-and-mortar shopping. AI-driven features, such as seamless item search and faster checkouts, can improve this aspect.

Additionally, AI can help stores manage inventory by sending customers reminders for restocking or offering delivery options for essential products, combining the best of physical and digital retail to meet the needs of today’s shoppers. Zillennials seek an integrated shopping experience where both digital and physical elements complement each other. The future of retail lies in using AI to meet zillennials’ desire for personalized, efficient and engaging shopping experiences, bridging the gap between the convenience of online shopping and the hands-on experience of in-store shopping.