The Gen Z Collective: Reimagining the Future of Retail

The Gen Z Collective is Citizen’s ongoing series uncovering the nuanced motivations, evolving priorities, and untapped opportunities within this pivotal generation. 

As the most influential consumer demographic today – with an estimated $12 trillion in spending power worldwide by 2030 – it’s no surprise that retailers today are scrambling to cater to Gen Z. And while Gen Z’s shopping habits start online, a significant portion of this demographic prefers to shop in stores. But the key to catering to Gen Z isn’t just through seamlessly blending the online and in-store experience, it’s in understanding why they choose an in-store experience. 

The Gen Z Consumer Journey Is Nuanced

Gen Z’s consumer journey isn’t as straightforward as it has been with older generations; it constantly oscillates between the digital and physical space. We know that Gen Z consumes more media than any other generation, which means they’re exposed to a multitude of ads on a daily basis. Their digital world is highly saturated and they’re incredibly skeptical of any branded content they encounter. Understanding what motivates Gen Z’s retail habits is crucial to breaking through the constant clutter around them. 

While their consumer journey often begins online – with platforms such as TikTok, Instagram and Pinterest crucial for inspiration and product discovery – 53% of Gen Z say they prefer discovering products in store rather than online. But the steps between product discovery and making the purchase have drastically increased. Research shows that Gen Z spends a considerable amount of time thoroughly investigating a product before committing to a purchase. From looking at independent reviews to trying on the product in person, they’re extremely intentional with what they put their money behind. This intentionality behind their spending habits is one of the reasons they prefer to shop in-person – to be able to fully get the feel of a product before taking the plunge. 

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IRL Experiences Driven By Nostalgia 

Part of creating retail experiences, whether online or IRL, requires understanding what Gen Z responds to the most. And while we can’t bucket the entire generation into one cohort, the appeal of “nostalgia” seems to be consistent across the group. We tend to characterize Gen Z as a group of digital natives that can only consume content in 30 second videos on a smartphone. But the reality could not be further and their penchant for nostalgia – particularly the 90s and Y2K – are indicative of just that. 

We’ve seen that desire grow in the way TikTok and Instagram algorithms have changed, moving from 30 second videos to 3 minute videos and photo carousels. The rise of Substack to one of the largest subscription-based newsletter platforms shows the desire for long-form written articles in a time where traditional media suffers. From 90s fashion trends of capris and banana clips to Y2K gadgets such as digital cameras and wired headphones and even the resurgence of chain restaurants, nostalgia is everywhere.  

Gen Z’s longing for new, IRL experiences is born out of the loneliness and isolation they have experienced spending their most formative years in a pandemic. Their desire and need for “third places” surpasses any other generation – a place where they can feel community and belonging. Whether it’s to “touch grass” or go out for “retail therapy,” Gen Z craves a hub where experience trumps aesthetics, creating a huge opportunity for retailers to give this generation exactly what they’re looking for. 

And big brands are picking up on it too; Old Navy’s been at the forefront of nostalgia marketing, especially with their recent 80s inspired campaign featuring Lindsay Lohan. Starbucks, a brand that was moving away from its third place persona, has decided to “reclaim third places” and create a space that fosters community and belonging. They’re not the only ones; influencer-led Chamberlain Coffee, which was exclusively online, has entered the brick and mortar space to provide Gen Z with a third place. Shopping malls, which have been struggling to stay open since before the pandemic, are suddenly making a comeback because of Gen Z’s view of retail therapy as an “experience.” In response, shopping malls are enriching the mall experience by adding rock climbing walls or pop-up concerts. 

Beyond Blending: Crafting Purpose-Driven Omnichannel Ecosystems

Gen Z’s consumer journey is a fluid dance between screens and real-world encounters, driven by authentic purpose and genuine connection. The conventional omnichannel approach of simply linking online and offline falls short. Instead, brands must build integrated strategies that recognize and cater to Gen Z’s nuanced movements, offering unique value at every touchpoint. This isn’t about replicating experiences; it’s about evolving spaces – both digital and physical – into platforms for discovery, engagement, and community building. In fact, one of the main reasons the Metaverse failed to live up to its hype is because brands weren’t bringing anything unique or new to the Metaverse experience that didn’t exist elsewhere.

It’s important for brands to remember that creating Instagrammable moments with specifically curated aesthetics aren’t enough to draw Gen Z in. Instead, they want elements that enrich their actual experience, whether it’s live music like Abercrombie & Fitch’s concert pop-up or an activity that gives them the opportunity to connect with people. There needs to be a larger purpose brands are serving for Gen Z – whether online or offline. Understanding that purpose isn’t as difficult as it may have been in the past; with Gen Z actively selling their personal data, retailers have all the information they need to personalize the entire shopping journey. The popularity of Spotify Wrapped with Gen Z is a clear indication that they are willing to give brands as much data as they can to get a personalized experience in return. 

The brands that master this balance between the digital and the tangible won’t just find success — they’ll claim the future. Gen Z isn’t asking for another shopping experience; they’re demanding a reason to care. Retailers who turn every interaction into something worth remembering will define what retail becomes. The question isn’t whether you can afford to invest in this generation—it’s whether you can afford not to.

Interested in more? Check out our previous article, Gen Z Collective: Influencing the “De-Influenced” Generation, here.