Purpose – This study aimed to identify the factors that make physical stores relevant to Generation Z, contributing to the reframing of this operational model, which plays a strategic role in job and income generation in Brazil.
Design / Methodology / Approach – An exploratory qualitative approach was adopted, grounded in the EKB model. In-depth interviews were conducted with Generation Z representatives, and the data were analyzed using content analysis.
Relevance – Technological advancement has transformed the way consumers interact with brands, challenging physical retail channels to adapt. Generation Z, as digital natives, relates to brick-and-mortar stores in new ways that require deeper understanding, especially in emerging markets and in the post-Covid-19 context. Although existing literature highlights social interaction and sensory experience as key drivers of physical store attractiveness, studies focusing specifically on Generation Z in this scenario remain scarce.
Findings – The results highlight the relevance of physical stores at three stages of the purchase process: (1) alternative evaluation, driven by the need to physically experience the product; (2) purchase, influenced by a spillover effect from the previous stage; and (3) post-purchase, where the store was partially relevant, associated with perceived service efficiency.
Implications – As practical and strategic recommendations, this study proposes repositioning the physical store as a space for sensory and emotional experiences, expanding access to product and service information inside the store, leveraging personalization as a key value driver, applying channel-based pricing intelligence, ensuring seamless post-purchase integration across channels, and bringing digital influencers closer to the physical retail environment.
Limitations – The study reflects individual perceptions of participants within a specific Brazilian context; therefore, it neither represents Generation Z as a whole nor can it be generalized to other market segments or regions.
Originality – The study is original in investigating the strategic role of physical stores for Generation Z despite the prominence of digital channels, within an emerging and post-pandemic market context—an area largely unexplored in previous research.
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