Press release -
New report: Physical shopping on the rise—biggest increase among Gen Z
The latest edition of Retail Radar 2025 launches today, based on 440 million transactions across Sweden, Norway, and Denmark, and reveals a significant shift in consumer behavior. While the pandemic accelerated e-commerce growth, in-store shopping has made a strong resurgence, with total retail revenue increasing by 7.4% 2024.
Notably, Generation Z (18-28 years old) is driving this shift, increasing their spending in physical stores faster than any other age group. The findings also highlight a growing emphasis on personal experiences, brand loyalty, and omnichannel engagement.
Key findings from Retail Radar 2025
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Physical retail is growing faster than e-commerce: In-store shopping increased by 11.8% in 2024, while online retail declined by 3.7%—marking the first significant contraction in e-commerce since the pandemic.
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Gen Z embraces physical experiences: Despite being digital natives, Gen Z’s in-store spending grew by 27%, outpacing all other generations. Their desire for tactile experiences, instant gratification, and social shopping is reshaping retail.
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Fashion, beauty, and wellness are booming: Fashion—especially premium brands (+29.6%)—as well as pharma and health (+28.5%) and Fashion—Reseller (+20.4%) saw the highest growth, reflecting consumers’ focus on self-care, social presence, and quality-driven purchases.
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Retailers face challenges with discounting strategies: While discount rates increased, they did not drive a higher volume of items on sale. Consumers are instead using discounts strategically—focusing on high-ticket items while returning products at higher rates.
- Loyalty programs account for 73% of total retail revenue: The report confirms the power of customer engagement and retention, as nearly three-quarters of retail revenue comes from shoppers who engage with brand communications and loyalty programs.
“This year’s data challenges the common perception that e-commerce is the future of retail,” says Felix Kruth, Chief Product Officer at Voyado. “Instead, we’re seeing a clear return to stores, especially among younger consumers. Retailers that invest in seamless omnichannel experiences, in-store engagement, and strong brand loyalty will be the ones to thrive in 2025.”
Local insights from Sweden, Norway, and Denmark
The rise of physical retail is evident across all Scandinavian markets. For a deeper look into local data, access the press releases and appendices for each market here:
Sweden: Rejält uppsving för fysisk handel – störst ökning hos unga konsumenter
Norway: Fysisk handel vokser – størst økning blant unge forbrukere
Denmark: Fysisk handel vokser – størst vækst hos kvindelige forbrugere
Download the full report
You will find the full Retail Radar report with all the insights here.
Topics
Voyado is a SaaS company helping retail brands create hyper-relevant shopping experiences, increase customer loyalty, and drive business growth. Their AI-powered customer experience cloud includes a product discovery engine with deep product knowledge to predict and respond to visitors’ intentions on e-commerce websites, and a multichannel marketing platform that offers invaluable insights and campaign tools for delivering automated and personalized shopping experiences.
Headquartered in Stockholm, Sweden, the company has more than 300 employees around Northern Europe, growing rapidly with customers around the world.
Voyado makes brands easy to love.