Just when it felt like we finally had a firm grip on what Gen Z consumers are looking for, Gen Alpha has entered the chat as the latest generation shaping retail and, well, making us feel old. The generation, roughly spanning those born between 2010 and 2024, doesn’t have much of its own money to spend quite yet. But we already know their impact on culture (who among us didn’t reluctantly Google what “6-7” meant last year?), and as they enter their teens, they’ve become “influencers in the household,” too, Melissa Gonzalez, principal and founder of retail consultancy MG2 Advisory and author of a new report on Gen Alpha’s impact on retail that surveyed 500 children between ages 8 and 14, told Retail Brew. Gen Alpha has over $100 billion in spending power, which is nearly half of household spending, per an August report by DKC—and Mintel expects this spending power to balloon to $5.5 trillion by 2029. Gen Alpha shares some similarities with their generational neighbors, Gen Z. They both prefer to “have a seat at the table” when it comes to brands, Gonzalez said, and enjoy in-person retail experiences. But while other generations turned to Google or even TikTok for information, Gen Alpha is adept with AI and the use of ChatGPT, and has grown up in the virtual universe of Roblox. At the same time, 73% prefer to shop in stores, per MG2—a stat that aligns with previous study from Numerator last fall. “With the Alphas, there’s fluency in interacting, whether it’s digital, physical, all of it—they’re the most fluid generation with all of it,” Gonzalez said. She shared with Retail Brew how brands and retailers can engage with this increasingly influential generation. Keep reading here.—EC |