The digital divide: how different generations feel about security in retail

It’s an exciting time for high street retail. After the shock of the pandemic, where so many buyers were forced to shop online, an interesting trend is emerging. We’re seeing a return to  pre-COVID levels of in-store shopping. 

Daemon partners with some fantastic retail brands, so in the interest of providing additional value, we conducted our own research into changing consumer habits. The research uncovered positive trends in returning to physical stores, and also highlighted some intriguing differences in behaviour between generations. 

Reinvigorating bricks and mortar

During COVID, eCommerce experienced a boom. Multiple generations were forced to embrace online shopping, payment and home delivery. During the height of the pandemic, between March 2020 and July 2021, online grocery shopping reached a high - 17% of consumers shopped exclusively online. As a result, retailers that didn’t properly invest in eCommerce during COVID are rapidly playing catch up. 

Retail is playing an increasingly important role in the UK economy. In 2023, retail sales were worth £510 billion, an increase of 4% on the previous year. For every pound spent in 2023, 40 pence was in food shops, a 9% rise on 2022. Retail isn’t simply shopping, it’s a powerful growth engine for the economy. Those businesses that keep in step with consumer trends can capture real value as a result.

Four years on from the pandemic, we’re seeing a shift back to pre-COVID habits. An important subset of buyers still want experiences, so retailers need to shop up with a solid omnichannel offering. Now, just 5% of shoppers buy exclusively online, and 36% of shoppers choose to shop exclusively in-store. And it’s here that we’re seeing a divide emerge in consumer behavior. Let’s go into more detail:

Divided at the checkout

Our research wanted to investigate buyer behaviour, post-pandemic- to understand exactly how different generations felt when they went shopping. Retailers shouldn’t treat all customers the same. Older generations want power and good customer service, whereas younger generations want speed and autonomy.

Baby Boomers (born between 1946 and 1964) overwhelmingly choose to checkout with a colleague present, whereas for Generation Z (those born between 1997 and 2002), over half chose an alternative checkout method.

• 79% of Baby Boomers choose traditional checkouts, whereas only 46% of Generation Z would do the same

The differences don’t stop there. The results also showed that overwhelmingly, younger Generation Z shoppers are more trusting of digital payment methods, including digital wallets.

• 40% of Generation Z trust digital wallets, compared to 12% of Baby Boomers 

Over time, the shift will move towards more self service and digital payment, but catering to a range of generational tastes is vital for modern retailers. To capture the most value, retailers have to be smarter diversified. 

Download The Consumer Trust Recession report

Divided in payment choices

In addition to this, different ways of scheduling payments for later also impacts generations. Generation Z are more open to buy now, pay later, whereas Baby Boomers see this as less secure.

• 27% of Generation Z shoppers see buy now, pay later as secure, compared to just 9% of Baby Boomers

And unsurprisingly, more mature shoppers still show a preference for paying with cash. Interestingly, only half of Gen Z buyers see cash as ‘secure.’

• 67% of Baby Boomers see cash as secure, compared to only 50% of Generation Z

What does all this data mean? It shows that digital payments, including buy now, pay later, are perceived as more stable by younger shoppers. Conversely, older buyers are prefer cash, which is seen as a less appealing option to Gen Z. When it comes to retail, the generations are divided in how and where they pay.

The key take away is that newer generations see digital as a normal part of life, whereas older buyers see it as risky. The way to cater for everyone is to provide options, with a roadmap to better digital provision over time. In this sense, the Overton window is a useful framework for applying popular choices in a positive way.

Read the rest of our Consumer Trust Recession report

The good news about generational differences is that retailers can help. Paradoxically, our research indicated something all generations love; a bargain. In fact, loyalty cards and discounts are still popular and promote customer retention across all generations. Despite all the generational differences, discounts and loyalty perks unite shoppers so retailers that keep the deals coming and will see loyalty soar.

• 61% of Gen Z, 67% of Millennials and 65% of Baby Boomers cite special discounts as the reason they shop with a particular retailer. 
• On top of this, 82% of British shoppers own a loyalty card for supermarkets, and 77% of them use it every single time they shop. 

What does this mean for retailers in 2025?

Taken together, these statistics are reassuring - although there’s a generational divide when it comes to payment, every generation seems to love special discounts.

Retailers can take advantage of these generational habits, by paying attention to the smaller details. Keeping a colleague present at the checkouts will help improve CX for older customers, and providing quick self-scan options is also important for younger shoppers. 

Allowing contactless payment is great for keeping Gen Z and Millennials happy, but also provide opportunities for payment in cash. And remember, that everyone loves discounts and loyalty programs, these options both cross generational divides.

“Our research shows that consumers across generations value discounts, but there is a genuine desire for authentic, personalised benefits. But, given the ever-increasing awareness of the risk involved in giving up personal data, transparency becomes a paramount strategy for building the trust that creates true brand loyalty.”
Kyle Hauptfleisch, Chief Consulting Officer

Get the full insight report, ‘The Consumer Trust Recession’

At Daemon, we’re here to help modern retailers better understand and cater to their customers. Whether you need support with performance engineering, cloud infrastructure to support demand or a review of how things are across your entire eCommerce infrastructure, we’re here to help. Get in touch with us today.