PLMA has released a new report on the shopping habits of Gen Z. Overall, it can be called it a tale of two quartiles. In her analysis of data from PLMA's new survey of Generation Z's grocery shopping habits, Sara Williamson, PhD, divided the 907 respondents into quartiles based on their relative patronage of store brands and their attitudes towards the products.
She tagged the two most extreme segments Expressive Loyalists, store brands' most ardent fans among Gen Z shoppers, and Discerning Reluctants, store brands' least supportive group.
Comparing the two quartiles provides a compelling picture of how much store brands are loved by many, and how much work lays ahead for marketers to win over some others.
The responses to the survey's baseline questions are, unsurprisingly, dramatically different. For example, 82% of Expressive Loyalists say they buy store brands "always or frequently" while that purchase rate is only 32% among Discerning Reluctants. Asked if they "experiment with store brands" to find the best value, 91% of Loyalists said they did compared to 12% of Reluctants.
Fully 95% of Loyalists are "aware of store brands" at their favorite grocery store, yet only 35% of Reluctants say they are. Some 77% of Loyalists "always or frequently" choose a place to shop due to its store brand offerings, vs 51% of Reluctants who make that decision.
Most revealing, 82% of Loyalists say choosing a store brand product makes them feel "very positive about themself," compared to 6% of Reluctants who say buying store brands has that effect on them. Also, 78% of Loyalists say they "enjoy" grocery shopping, vs. 16% of Reluctants.
When asked to evaluate a series of positive descriptions of store brands, the percent of Loyalists and Reluctants who said they fit "very much or precisely" differed greatly. They were: Trustworthy, 78% of Loyalists said they fit vs. 20% of Reluctants; Authentic, 64% vs.16%; Innovative, 58% vs. 6%; Credible, 67% vs. 13%; Reliable, 75% vs. 18%; Fun, 55% vs. 11%; and Variety, 74% vs. 26%.
Dr. Williamson, Assistant Professor of Marketing at SUNY Old Westbury, presented her findings at PLMA’s Chicago Show.
The PLMA report, “Gen Z Loves Store Brands: America’s Youngest Consumers Speak Out on Grocery Shopping, Stores and Brands,” is available here.