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The insight: Gen Z consumers are starting their purchase journeys more often on Google properties, including YouTube and Gemini, according to a Business Insider report citing Morgan Stanley data. Our take: Google is doing a good job of leveraging the popularity of YouTube and increasing interest in genAI-powered shopping tools to win over younger shoppers and establish itself as the first port of call in their customer journeys.

The insight: Younger consumers are opting out of human interaction when they shop. Our take: While younger consumers tend to adopt new behaviors faster, they鈥檙e also driving the direction of retail innovation. Retailers looking to stay competitive should prioritize the tech-driven, convenience-first features these shoppers now see as table stakes.

Inflation causes Gen Z shoppers to rethink when and where they shop: Growing financial strain is forcing shoppers to adjust their spending habits.

The news: Gen Z is reshaping how consumers shop, spend, and stay well鈥攚ithout ever leaving their screens. US Gen Zers record 425 digital actions a month鈥�40.3% more than Gen Xers and 141.5% more than baby boomers, per PYMNTS Intelligence. Our take: Brands should partner with carefully chosen SMEs to expand reach. High social video subscriber counts won鈥檛 bring the best ROI if creators aren鈥檛 well-versed in what they鈥檙e promoting. They should also ensure websites and checkout processes are frictionless. Gen Z wants quick, effortless experiences. Brands that provide those have the best chance to win them over, and other generations will follow their lead.

Direct-to-consumer (D2C) ecommerce is evolving, driven by Gen Z鈥檚 shopping habits and the rise of powerful AI tools.

Ecommerce growth is slowing as the market matures, but gains will come from mobile commerce, Gen Z buyers, and high-performing categories.

The findings: Bank of America鈥檚 report 鈥淎 Window to Gen Z鈥檚 Financial Health鈥� looks at some of the biggest financial stressors that Gen Zers face. 36% say their income doesn鈥檛 cover the cost of their basic needs. The survey also reveals the efforts Gen Zers have made in the last year to still meet their financial goals. 51% put money in savings. 24% paid off debt. 25% put money into retirement accounts. 41% started shopping at more-affordable grocery stores. Our take: Banks can effectively engage with Gen Z by offering products and services that acknowledge the desire for short-term gratification and long-term financial stability.

The news: Primark is incorporating inclusive and sensory-friendly features into its kidswear line to help more children feel 鈥渃omfortable and good鈥� in their clothes, per The Retail Bulletin. Our take: Inclusivity isn鈥檛 just about doing the right thing鈥攊t鈥檚 a smart business strategy. At a time when brand loyalty is eroding鈥攅specially among Gen Z and millennial shoppers鈥攔etailers and brands that thoughtfully accommodate children with sensory sensitivities have a real opportunity. By offering products and experiences that meet these needs, they can forge lasting connections with parents who are actively seeking out solutions that make their kids feel comfortable and seen.

As consumers trade traditional search engines for social feeds, brands are approaching these platforms as drivers of brand awareness and conversion. TikTok Shop has rapidly become the eighth-largest beauty retailer in the United States, according to a February report from NielsenIQ. 41% of Gen Z turns to social platforms first for finding information, ahead of search engines (32%), AI chatbots (11%), and friends and family (9%), according to a May Sprout Social survey.

The news: Klarna partnered with Poshmark so US buyers can resell Klarna purchases on Poshmark through the Klarna app. Our take: Gen Zers have a hunger for low-cost fashion. As fast fashion brands face mounting tariff pressures, Gen Zers may turn toward resale marketplaces to some from someone else鈥檚 closet鈥攁nd use sales from their own closet to fund that shopping.

The news: Urban Outfitters is partnering with Levi鈥檚 for the second iteration of On Rotation, its limited-time concept launched earlier this year with Nike to deliver community-driven, experience-rich retail environments for Gen Z. Our take: On Rotation recasts retail as a series of limited-edition experiential drops, with physical and digital spaces that vanish almost as quickly as they appear. It鈥檚 a storytelling-fueled scarcity play that鈥檚 designed to train a generation of shoppers who never grew up as mall rats to return again and again in search of novelty. The approach reframes the store鈥攁nd the website鈥攁s a medium for culture, not just commerce, and offers a playbook that department stores and other retailers would be smart to test.

The trend: Protein is having a moment. Some 44% of US consumers鈥攁nd 51% of Gen Z and millennials鈥攁re actively trying to boost their intake, turning protein into a must-have across categories. Our take: Protein-rich, better-for-you products are proving to be a rare bright spot amid a challenging consumer landscape. Shoppers鈥攅specially younger, health-conscious ones鈥攁re still willing to pay a premium when the nutritional value feels worth it. For CPG brands and foodservice chains, protein is a high-impact lever to drive growth and relevance. But sustaining that momentum requires more than a nutrition label. If the taste, format, or experience falls flat or feels like a gimmick, consumers won鈥檛 hesitate to walk away.

Roughly two-thirds (64%) of Gen Z consumers have cut spending in the past year due to higher living costs, according to an April Ipsos survey for Bank of America.Uncertainty is beginning to shape Gen Z鈥檚 purchasing decisions. Brands will need to work harder to earn their dollars鈥攑ossibly by appealing to the generation鈥檚 tendency to shop for emotional relief.

The news: Gen Z is preparing an ambitious lineup of summer fun鈥攊ncluding domestic and international travel, shopping and dining, and vacation upgrades鈥攖o a degree that outstrips millennials, Gen X, and baby boomers, per a study by Bread Financial. Our take: Gen Zers invest in work/life balance and are willing to spend to maximize their R&R experiences. Brands should meet this generation with luxury-first options and seamless experiences to maximize their return on investment for the younger cohort willing to spend to make a good time a great one.

Walmart鈥檚 brand refresh reflects its retail evolution: Its visual update accompanies initiatives to enhance ecommerce capabilities and lure more affluent and Gen Z shoppers.

Physical stores matter most for driving awareness. But online, social media platforms outrank multibrand retailers鈥� digital channels in driving product discovery, with the most pronounced impact among Gen Z shoppers.

Screen-fatigued shoppers are rediscovering the thrill of real-world discovery by flipping through catalogs, queuing for pop-ups, and going on retail tourism. Josh Golden, CMO at Quad, shares how Gen Z and millennials are craving these encounters, 鈥渞eturn on touch鈥� as a measurable metric, and how blending physical and digital elements can lift loyalty and sales.

We look at how retailers can improve their shopping experiences for younger customers to meet their avoidant preferences.

E.l.f. Beauty strikes $1 billion deal to acquire Hailey Bieber鈥檚 Rhode: The move could reignite slowing growth and boost its appeal to Gen Z and more affluent shoppers.

As consumers become increasingly comfortable abandoning brands, marketers and retailers are betting on personalized experiences to keep them around. 81% of Gen Zers and Millennials, and 74% of all shoppers worldwide have switched brands in the past year, per a December 2024 Salesforce survey. Enhancing personalization efforts and building brand trust and loyalty are two of the top priorities among marketing leaders worldwide, according to a December 2024 survey from The Marketing Geeks.

Increased time spent on CTV, social video鈥檚 shopping influence, and a larger share of working Gen Zers will give advertisers new opportunities for growth. Here are five charts to help your business understand these changes and kick-start the new year.

Despite growing up online, Gen Z and millennials prefer in-person shopping and socializing, creating opportunities for minimalist tech and physical brand experiences.

Social commerce is gaining momentum in the UK鈥攚ith sales set to double by 2028鈥攁s major brands join TikTok and as more people shop on social platforms.

Retailers are quickly embracing autonomous AI鈥攕ometimes referred to as agentic AI鈥攖o enhance operations and customer experiences. Gen Z is leading the shift, using AI for discovery and shopping. But to grow adoption across all generations, retailers must build trust through data security and transparency of AI use.