Gen Z and boomers might not have a lot in common, but guess what? They both love Kohl’s.
That’s according to a new survey, The Consumer Sentiment Index, which polled 9,000 shoppers from Gen Z to millennials, Gen X, and boomers about the factors that influence their purchasing decisions and which retailers they prefer.
While all four generations certainly have different shopping and buying preferences, there were some surprising similarities, starting with where folks like to shop.
Kohl’s is winning on price for Gen Z and boomers
When it comes to department stores, Kohl’s is a winner as far as cost, with 19% of Gen Z and a whopping 32% of boomers ranking it their favorite.
While department stores are struggling to attract younger consumers, the Seattle-based luxury chain Nordstrom seems to be doing something right, topping millennials’ department store ranking at 22%. Meanwhile, 25% of Gen X choose the more-affordable option of Macy’s.
How are Kohl’s and Nordstrom winning the younger demographics? According to the survey, Kohl’s is using its partnership with beauty brand Sephora to draw in younger shoppers, while Nordstrom is staying relevant, in part, by signing deals with popular brands such as Kim Kardashian’s shapewear company, Skims.
Also worth noting: 90% of department store customers want to feel they’re getting the best deal, and 88% expect frequent sales and discounts. However, they also have incredibly high expectations for consistent fit with high quality and craftsmanship. This puts department stores in a challenging position compared to “off-price” retailers like T.J. Maxx, Ross, and Burlington, which offer similar products at competitive prices, but aren’t expected to deliver the same quality.
Nike is a favorite across generations
When it comes to athletic footwear, everyone from Gen Z to boomers rated Nike number one. Across the board, the company that coined the phrase “Just do it” does it again and again.
And it wasn’t even close: More than double the respondents ranked it number one over the next name on the list. (For Gen Z and millennials, that was Adidas, while Gen X and boomers preferred Footlocker.)
Ironically, as CNBC notes, the survey’s findings contrast pretty starkly with both Nike and Kohl’s financial performance, with the footwear company projecting lower sales by 8% to 10% this quarter.
So what explains this discrepancy between how the companies are doing financially versus how much consumers prefer them?
It turns out that both companies have made some strategic mistakes. While consumers praise Nike’s faster innovation and development cycles, and it has a solid connection with younger consumers, it isn’t selling enough sneakers. People are just spending less on expensive sneakers and athletic clothing. The company is also facing competition from running brand Hoka, especially among an older demographic.
Meanwhile, Kohl’s has struggled to appeal to consumers who are spending less due to inflation and prioritizing more basic and essential purchases.
What consumers really care about
The mantra this holiday shopping season is: “Right product, right place, right time,” with 55% of millennials and 56% of Gen X saying the most important factor in making a purchase is being able to find the product in stock in a store, and 66% of consumers saying they will shop at a different store if they cannot do this.
Another surprise: Brick-and-mortar stores still matter, especially to millennials (84%) and Gen X (82%), who call them “very important” and prioritize stores that are easy to get to.