Gen Z is a generation of contrasts. While they’re the first group in history to grow up entirely with digital and mobile technology at their fingertips, they’re continuing to play a vital role in the revival of physical stores – highlighting the draw of gathering, shopping, and dining with friends in person.
While members of Gen Z are digitally native consumers,
they interact dynamically with brands both in-store and online.
Career-Driven, Credit-Averse
and Tempted by Immersive Retail
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Payment Method Usually
Used to Make a Purchase
Gen Z Most Frequently Shop At
48
%
Discount/off price retailers
T.J. Maxx, Marshalls, Kohl’s,
Walmart, Target, etc.
The RealReal, ThredUp, etc.
Thrift/second-hand
%
13
Etsy, Depop, etc.
Peer-to-peer
%
11
Dollar General,
Family Dollar, etc.
Dollar/variety stores
%
25
Facebook Marketplace
%
11
Express, Abercrombie,
Best Buy, Apple, Sephora,
Bath and Body Works, etc.
Specialty retailers
%
24
Ralph Lauren, Gucci, etc.
Upscale/luxury retailers
%
9
Shein, Zara, Uniqlo, H&M, etc.
Fast fashion retailers
%
22
Macy’s, Dillard’s, JCPenney,
Bloomingdales, etc.
Department stores
%
21
Nearly the same share of respondents who shop
at brick-and-mortar stores (97%) also shop online (95%). Why?
Gen Z Wants the Brands They Shop to Support:
%
53
%
47
%
47
%
42
%
26
%
20
Mental health
The environment/
climate change
and sustainability
Racial and
gender equity
Ethical labor practices
(fair trade/ethical
sourcing, liveable wages)
LGBTQ+ rights
Civic engagement/
political activism
The Real Influencers Are the
People Gen Z Know Best
Family members/friends
Reviews on the product website
Online review websites/forums/blogs
Company/brand employees, store
1
2
3
Gen Z Value Speed, Convenience and Efficiency in the Shopping Experience
Gen Z consumers have certain expectations of the brands
they choose to support or the retailers they opt to shop.
Quick and
easy checkout
Fast shipping
Being able to get
what you want
in-store immediately
Free returns
Quick/helpful
customer service, enough employees
Ability to (accurately) check stock in-store ahead of time
Ability to buy online
and pick-up in-store
%
46
%
45
%
39
%
31
%
27
%
23
%
23
%
45
45% Debit card
21% Cash
%
21
17% Credit card
%
17
14% Mobile payment
%
14
3% Buy now, pay later
%
3
Members of Gen Z are coming
of age in an uncertain economy, and four in five respondents say they’re worried, as inflation, interest rates, and the prospect of a recession continues to impact their outlook.
shop online to
find better prices and deals
20
%
shop online
for convenience
%
30
shop in-store to see, touch and try products
%
28
shop in-store to get products immediate
%
30
(Apple/Samsung Pay, Venmo, PayPal, etc.)
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associates, or seeing products in-store
Social media/influencers
5
4
The Rise of the
Gen Z Consumer
The member organization for industry advancement, ICSC promotes and elevates the marketplaces and spaces where people shop, dine, work, play, and gather as foundational and vital ingredients of communities and economies. ICSC produces experiences that create connections and catalyze deals; aggressively advocates to shape public policy; develops high-impact marketing and public relations that influence opinion; provides an enduring platform for professional success; and creates forward-thinking content with actionable insights – all of which drive industry innovation and growth. For more information, please visit www.ICSC.com.
Connect.
ICSC’s latest report aims to uncover the shopping habits and behaviors of this new cohort of consumers, exploring drivers like the state of the economy, social media, and brand ethics.