Following its acquisition by Couche-Tard, discover the drivers behind Żabka’s success with younger shoppers.
IGD ShopperVista’s Winning with Generations report finds that Generation Z (Gen Z) shoppers place particular value on convenience. This leads them to prefer the convenience and online (particularly quick commerce) channels. Younger shoppers are also more trend-led than other generations. Whilst this research focused on the UK, the same can be said of gen Z shoppers in Europe.
Winning with generations
This report equips retailers and manufacturers with the drivers shaping shopper decisions across generations and life moments, helping to identify where the biggest opportunities lie.
Poland’s Żabka is one of Europe’s most innovative convenience players, as well as operating a fast-growing online and quick commerce platform. Much of the retailer’s recent success has stemmed from its ability to capture the attention of Gen Z shoppers. Its modern ‘Ultimate convenience’ store formats, innovative private label and food-to-go offering, and digital excellence are all vital to this.
Ultimate convenience
Convenience through proximity is something greatly valued by Gen Z. Żabka’s rapidly growing network, now consisting of over 13000 stores across Poland and Romania, ensures shoppers are never far from a store. These are mostly concentrated around large population centres, which tend to have larger proportions of young people.
Żabka’s space-efficient store format allows these locations to deliver despite their small size. The standard range includes fresh produce, food cupboard essentials, snacking, household non-food essentials, and its famous food-to-go proposition, in an average space of only 65 sq m. This allows Żabka to cater to a wide range of shopping missions within a proximity format close to shoppers’ homes and workplaces, providing unparalleled convenience.
Innovative offering
Żabka’s popularity amongst Gen Z does not only stem from convenience. The retailer continually innovates its private label and foodservice offerings. This allows it to ride trends, attract new shoppers, and keep its range feeling fresh and exciting to shoppers. Recent additions include high protein packaged sandwiches, banana bread made with bananas at risk of going to waste, and chilled fresh smoothies made in-store. Maintaining a trendy, exciting range preserves Żabka’s brand perception as a ‘cool’ retailer.
In some cases, Zabka uses its product innovation purposefully. It is currently launching two new pizzas, created in collaboration with Książulo, a massively popular Polish food Youtuber. These are available from its hot café proposition and are being promoted both in-store and through the influencer’s social media channels. This shows Żabka’s understanding of how to appeal to Gen Z. Not only utilising influencer marketing, but actively collaborating with online celebrities, helps maintain the retailer’s ‘cool’ factor amongst young Poles.
Digital excellence
Gen Z shoppers are known to spend more time online that their older counterparts. They are also the most common users of the online channel and quick commerce. Żabka caters to these needs with multiple online capabilities. It operates Delio, an online store with a much wider range than its typical convenience stores. Delivery can be scheduled, or as quick as 15 minutes when ordered through Jush, Żabka’s own quick commerce service. All these services are accessed through a single mobile app. This approach maximises shopper convenience and has allowed Żabka to become Poland’s largest online grocery retailer.
Its digital strengths are not limited to online shopping. Żabka also delivers a best-in-class loyalty app. This delivers special promotions, loyalty pricing, and even an in-app payment card. For Gen Z, the most notable feature is its gamification. The Żappka app provides a range of games in which shoppers can earn points that can be redeemed in its loyalty scheme. It also hosts promotional games with partner brands, producing digital retail media and promoting special branded prizes. The retailer has even launched a micro-controller for its in-app games in-store.
These gamification features are a powerful tool in capturing and retaining shopper attention on Żabka’s app. This is particularly effective amongst digitally-focused Gen Z shoppers.
Winning with younger shoppers
Gen Z shoppers love the convenience and online channels for how easy they make the shopping experience. Żabka’s proximity and accessibility (both in its stores and online) creates a frictionless experience which resonates with younger shoppers. It builds on this by catching and retaining their attention through innovation in its format, range, and digital capabilities.
The convenience chain’s recent acquisition by Couche-Tard is likely to open up funding for further expansion across Europe. Players in the convenience and online channels should prepare to compete with this pioneering retailer. Significant investment may soon be required to keep the attention of Gen Z shoppers from being captured by Żabka.
For more insight on the acquisition, read: Strategic implications of Couche-Tard acquiring Żabka