Gen Z Spends Less but Shops at More Stores, Research Finds
New research indicates that Generation Z spends 25% less than other generations but distributes their spending across 6% more merchants, challenging traditional consumer loyalty.
A new report from advertising and data technology firms Attain and Dentsu reveals distinct spending habits among Generation Z consumers. The study found that Gen Z shoppers spend 25% less than other generations overall, yet they spread their more limited funds across 6% more merchants.
Understanding Gen Z spending is crucial as they become a larger force in the consumer economy. The research combined purchase data with a survey, showing Gen Z values brand names 25% more than price but is 18% less likely to make repeat purchases from the same brands.
This generation's greater propensity for discretionary spending and openness to brand switching suggests traditional marketing approaches may need adaptation. They tend to prioritize convenience and time-saving over deals, although they are 7% more likely to use coupons than the general population.
"Gen Z is showing us why the traditional view of the consumer is no longer enough," said Jeff Zifrony, senior vice president of strategy at Attain. Aisha Khan, head of retail and commerce at Dentsu North America, noted that Gen Z's fragmented spending requires brands to integrate audience understanding, media planning, and measurement.