Analytics, AI/ML

Gen Z and Their Shopping Trends

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Making 20% of the total United States population, Generation Z people born between 1995 and 2010 are impacting the current retail landscape with an estimated 140 billion USD spending every year. Even the elderly Gen Z members have just graduated and entered their professional fields. And being digital natives who cannot visualize an Earth without rapidly growing technology, this generation shows different earning, spending, and overall money-management habits. Here are their key characteristics which might help retail businesses to serve this generation more efficiently:

  • Their ability to quickly research products or services makes them 'savvy shoppers' with informed decisions, thanks to advancements in accessing information online more rapidly and accurately.
  • Gen Z expects more than just quality or affordability. According to Forbes, this generation prefers authentic, transparent shopping options with growing online marketing, making them loyal to brands.
  • As Gen Z spends more time scrolling feeds, social platforms heavily impact their shopping decisions not just because of advertisements but also for interacting with various brands and communities.
  • According to Kearny, despite the advancements in digital payment and e-commerce, over 80% of Gen Z customers prefer shopping in-stores, with 72% of them discovering new products there.

For Young Gen Z and Millennial Shoppers, Their Choice is Valued by Their Beliefs

There's no denial that Gen Z customers shop with their belief towards the brand, which often makes them loyal, especially for fashion wear and electronics. This is where social media provides an effective outlet for helping Gen Z shoppers make well-informed decisions. The survey executed by A.T. Kearny also discovered that nearly 60% of Gen Z customers made their purchases affiliated through social platforms or influencers, notably Instagram & YouTube. 

The following infographic by SurveyMonkey helps us understand how brand presence on social media correlates to shopping habits.

Source: Gen Z: Social Media and Shopping Habits

New Shopping Trends in Gen Z will Lead to New Strategies for Retail Businesses.

For retail businesses, the approach towards catering to Gen Z and millennials will evolve over the following years. This digital-savvy generation is ready to adopt new shopping trends while valuing social interactions, both in-stores and online. According to McKinsey, over 90% of Gen Z consumers stated that "brands must have responsibilities to address social issues" for better serving Gen Z shoppers. And as Generation Z is predicted to account for 40% of luxury purchases by 2035, retailers cannot overlook that Gen Z appreciates the social values of companies trying to sell products or services.


Compared to previous generations, Gen Z shoppers emphasize the importance of the consistent delivery of retail essentials. While making purchases, they primarily consider product choice, availability, convenience, and brand recognition. Most importantly, despite being digital natives, most Gen Z shoppers prefer in-store shopping because they prioritize reliability and consistency.

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