Whilst there are always slow-moving generational shifts in retail, and maintenance teams are mindful of their contribution towards retaining a loyal customer base, 2025 is a year where a lot of younger generations begin to take prominence in the market.
With Generation Z becoming the major target demographic for many retailers alongside millennials and Generation X, this has a prominent effect on what makes for the most desirable retail experience.
Whilst previous generations, most notably the baby boomers, prioritised brand heritage and loyalty schemes to retain continued custom, this is less of a priority for younger demographics.
Instead, a key priority for Gen Z is sustainability, as a significant number of younger people want to feel like their purchase is a net positive for the environment in substantial ways that transcend greenwashing.
A successful retailer with younger millennials and Gen Z will act responsibly and purposefully, clearly communicating their mission, brand identity and sustainability efforts throughout their retail locations.
This was, in some respects, the reason for the collapse of The Body Shop; whilst initially an ethical company, its purchase by major cosmetics brand L’Oreal and the rest of the cosmetics industry catching up led to increased issues, lower sales and eventually administration.
Similarly, and perhaps more importantly, brand ethics are considered to be more important for retaining consumers than brand heritage.
This is a trend that has been intensifying for the last decade, where a choice of retailer is a choice to associate with the ethics, values and actions of that brand.
There are countless examples of companies that have suffered serious financial hits due to unethical behaviour, as younger people in particular link purchasing decisions to moral choices and ethical associations.
As there are more options in many retail sectors for ethical retailers younger customers are much more likely to remain loyal to a company that they feel has brand values and ethics which align with theirs.