Meet the Consumers Who Will Shape Shopping

Generation Alpha is young, but their early life experiences are already influencing how they research and buy products.

By Julie A. Palm

You can trace the shopping habits of Americans through the life of my 84-year-old father. When he was a young man, he patronized locally owned stores and small regional chains. His favorite was the corner newsstand, where he could buy a copy of The Sporting News, the latest baseball cards and sundry items.

Born on the border of the Silent Generation and Baby Boomers, my dad and his cohorts have steered our consumer-driven economy for decades. He’s fond of good deals and is always in the market for new clothes, appliances, home furnishings, electronics and golf equipment (so much golf equipment!). He and his wife chose their retirement community, in part, because of all the nearby shopping.

My dad’s demographic helped drive the rising popularity of strip malls in the 1950s and enclosed shopping malls in ’60s and ’70s. When big box retailers and buying clubs began to emerge, he became a fan — and recently stood in line to get his Costco card when one finally opened in his area. (First purchase: a bunch of AA batteries, a rotisserie chicken and a $1.50 hot dog for lunch.)  

He likes using Apple Pay and, when he has just a few items to buy, he takes advantage of self-checkout at the grocery store.

While my dad’s shopping habits have evolved with changing technologies and retail options, he misses the Globe News. For him, that store defined retail and, because of that, he does most of his shopping in brick-and-mortar stores. When my dad needs a new lighting fixture or lamp, he prefers a showroom that has a nice selection and salespeople who can answer his questions.

My dad does not care one whit about online influencers or gamified shopping. He does not need to be entertained — except by those Costco hot dogs.

If my dad is the history of modern American retail, Generation Alpha is the future.

Generational definitions are squishy, but Gen Alpha is generally defined as being born between the early 2010s and mid-2020s, with the eldest about 15 or 16 years old right now. Most won’t buy lighting – save for a cool lamp for their bedroom – anytime soon. There is an inherent challenge in forecasting the shopping habits of a generation still so young.

But how Alphas think about shopping, advertising and information gathering will shape the retail landscape in the years ahead, just as my dad’s desire for super convenient, value-driven shopping helped hone retail for the past 70-plus years.

Future Snoops, a New York-based consumer insights and trend forecasting firm, has been looking into the eldest members of Gen Alpha and recently shared some findings in its webinar, “Gen Alpha: Age of Autonomy.”

They’re living in a digital world

“The digital world is normal to them,” said Laila Carey, culture analyst for FS. “We’re always seeing all the novel ways that kids are using technology, whether it’s engaging with AI companions or creating nonsense memes, but it’s also become a really normal aspect of their daily lives. In fact, we’re seeing gaming emerge as a normal daily habit, with many spending an average of two hours a day on platforms like Roblox to socialize with friends.”

Already, one in three Alphas use artificial intelligence every day, according to FS findings. And 70% would rather turn to an AI tool than a person when they need information.

“It’s becoming the first place that they go to get any information. They’re using it to shop more than any other generation, and a lot has been made of how they’re using it also for emotional companionship,” said Nivara Xaykao, director of culture and consumer insights for FS.

“This normalization of the digital world is also happening at an institutional level,” Carey said. “Universities are increasingly recognizing content creation as a valuable professional skill. … Schools are … introducing curriculum aimed at teaching students creator-focused skills, like audience engagement, to better prepare them for future careers.”

They are intrigued by the “real” world

But, because these kids have grown up immersed in a digital and increasingly AI-driven world, “it’s actually the physical world that has novelty for them,” Xaykao said. Notably: Three out of four Alphas prefer brick-and-mortar shopping, she added, perhaps because of a desire for in-person socialization.

“The interesting thing is that discovery and all that (product) research mostly happens online first, but then they still want to continue their shopping journey into stores to look at, try out and test products,” Xaykao said.

And Alphas have decidedly mixed feelings about social media. On one hand, they have a fear of missing out if they’re not on social apps. On the other hand, she said, “they know how harmful social media can be and (know) that they’re kind of being held captive by these platforms.”

In experiments to limit phone use during school days, “a lot of kids actually enjoyed having screen-free classroom days and would even carry the habit into their evenings after school, as they really enjoyed that it gave them more time to focus on their hobbies and even more intentional time to connect with their parents,” Xaykao said.

They like certainty

Gen Alphas are risk averse, partly because of protective, very engaged parenting but also because “they just have access to so much information online that it’s kind of conditioned them to crave certainty and predictability,” Xaykao said. Yet, like many generations in their youth, Alphas can be open to exploring new things as they try to define themselves. In many ways, they are used to being catered to and especially like to be able to customize items to their own tastes.

A new generation in the driver’s seat

The eldest Gen Alphas will start furnishing their own places in the next five to seven years — and, with that, will start shaping the home furnishings market. Their desire to break free of the confines of the digital world – at least occasionally – may bode well for physical retail.

But with their comfort with AI, it won’t be retail the way my dad shopped when he was their age, or even how he shops today.

How are you preparing for what’s ahead?

(If you’re interested in generational buying habits, be sure to check out our biannual Consumer Insights Now research this fall. It will delve into the home furnishings shopping habits, plans and attitudes of Generation Z. CIN research is conducted twice a year on behalf of Lighting News Now and our sister publications and is released in the weeks leading up to the High Point Market.)

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