Bobby Calise, director of business development at youth insights firm Ypulse, told Business Insider that JCPenney and Macy's have high brand awareness among Gen Z, but they're more likely to shop at Forever 21, American Eagle, and other youth-centric fashion brands.
"The data is clear on one thing: neither brand is 'cool' in the eyes of Gen Z — and cool is a pretty important form of currency if you're in the business of selling clothes to teenagers," Calise said.
Goel said Gen Z perceives these stores like JCPenney, Sears, and KMart as lacking quality and a voice.
"When was the last time you bragged about shopping at JCPenney?" Goel said.
Gen Z prefers to order online from companies with strong digital branding, said Tiffany Zhong, CEO of youth marketing firm Zebra Intelligence. Many understand how to find manufacturers online, where they buy products directly for a lower cost.