Gen Z and the New Way to Shop
by Hudson Waiting
Gen Z grew up online. We’ve always had access to information, reviews, and opportunities to evaluate what’s worth our time and money. What does that mean for the marketplace? That we don’t shop the way older generations did.
Generation Z, often shortened to “Gen Z,” is quickly becoming one of the most powerful consumer groups. With growing spending power and strong opinions about brands, this generation is forcing companies to rethink how they market, sell, and build loyalty.
So how exactly does Gen Z shop, and why does it matter for businesses? The Good: Smart, Deal-Hunting Shoppers
One of Gen Z’s strongest traits as consumers is that we don’t spend blindly.
Instead, most of us are actively comparing prices, reading reviews, and hunting for the best overall value before hitting “buy.” In fact, research shows that around 92% of Gen Z consumers research a product before buying it ("Nearly Two-Thirds”). This doesn’t mean we are searching for the cheapest option, though.
In other words, “value” for Gen Z goes beyond price. It includes:
● Product quality
● Long-term usefulness
● Brand reputation and ethics
● Personal meaning or identity fit
That’s why you’ll often see members of Gen Z waiting for discounts, buying secondhand and thrifting, or switching brands easily if they find better options. In short, many of us are not just buying anything for no reason: we are doing deal hunting and making calculated decisions.
The Bad: Quick to Judge and “Cancel Culture” Pressure
Gen Z’s buying behaviors can also pose a challenge for brands.
Our generation is more likely to support brands that align with our values, such as sustainability, diversity, and social responsibility. Because of this, members of Gen Z quickly hold companies accountable and sometimes even walk away from them entirely.
Social media exaggerates this effect and can shape public opinion. One viral post or headline can shift how people see a brand overnight. In fact, about 81% of Gen Z consumers admitted to having changed their purchasing behaviors because of brand actions or their reputation (Panton).
We’ve seen this play out with brands like Shein, where concerns about labor practices and environmental impact led many Gen Z shoppers to rethink their purchases (Acheson and Espiner).
For Gen Z, purchases are personal, and supporting brands often feels like a reflection of one’s own values. So, if those values don’t align, it’s easy to move on.
The Disruptive: Gen Z-ers and Market Upheavals
Gen Z is the first generation to grow up fully immersed in digital life, earning them the nickname “iGen.” We’ve never known a world without smartphones, social media, or instant access to information. And sometimes, the tech-savvy nature of the generation goes way beyond shopping, influencing entire financial systems.
Take the GameStop short squeeze in 2021. Using platforms like Reddit, many younger investors coordinated to buy shares of GameStop, rapidly driving its stock price. At its peak, GameStop hit an intraday high of $483 (Katje).
It wasn’t random. A lot of this was driven by the frustration with large hedge funds like Melvin Capital, which had heavily shorted the stock. As the stock price skyrocketed, hedge funds were forced to cover their positions at significant losses, with Melvin Capital reportedly losing 53% on its investments (Chung).
The takeaway? Gen Z and other retail investors can act and disrupt systems once dominated by huge financial institutions.
Marketing to Gen Z: Keeping it Real
Traditional advertising doesn’t work anymore. Not for Gen Z, at least. Gen Z is skeptical of polished marketing and more responsive to content that feels real, relatable, and socially relevant.
Research by Hassoun et al. (2023) revealed a few prominent buying behaviors:
● Members of Gen Z don’t usually go searching for information. Instead, they come across it on social media or through their networks.
● Reasons for engaging with information and products are often social. For example, a member of Gen Z might read or share something because it relates to their identity, friends, or interests.
● Understanding information is a group activity. Those in Gen Z often interpret and judge information with others in mind, keeping in mind what their peers think and what fits in their social circles (Hassoun).
This research explains why platforms like TikTok and Instagram are so powerful. Gen Z can’t just consume content: they have to interact with it, react to it, share it, and judge it socially. That’s also why influencer marketing, user-generated content, and short-form videos tend to outperform traditional ads. Authenticity matters more than production quality.
Why Companies Should Care
Gen Z’s influence is still growing, with global spending power projected to grow to $12 trillion by 2030 (NielsenIQ). This means companies can ignore the generation at their own risk.
But Gen Z can be a bit tricky to win over. Our generation is quick to question marketing and call out companies online. And, as I’ve discussed, we can even influence markets in ways that impact major corporations.
At the same time, when a brand does get it right, Gen Z shows up. We’re loyal to companies that feel genuine, align with our values, and deliver on what they promise.
Conclusion
Gen Z’s spending habits are a mix of intelligence, skepticism, and persistent beliefs. We shop intentionally, question what we see, and aren’t afraid to speak up when something doesn’t feel right. In the end, if companies want Gen Z’s attention, they can’t just push content in our faces: they have to work for engagement and loyalty.
Bibliography
"Nearly Two-Thirds of Gen Z Prefer In-Store Shopping to Online, New Study Finds." L.E.K. Consulting, 18 Jan. 2024,
www.lek.com/press/nearly-two-thirds-gen-z-prefer-store-shopping-online-new-study-find s.
Panton, Heather C. "New study reveals Gen Z purchasing power could be a force for ethical labor." Thomson Reuters, 11 July 2025, www.thomsonreuters.com/en-us/posts/human-rights-crimes/gen-z-purchasing-power.
Acheson, Lucy, and Tom Espiner. "Shein backlash fails to deter shoppers: 'I spend £20 a month.'" British Broadcasting Corporation, 18 Jan. 2025, www.bbc.com/news/articles/cy5k3v6x6vxo.
Katje, Chris. "If You Invested $1,000 In GameStop Stock When Ryan Cohen's Stake Was Disclosed, Here's How Much You'd Have Now." Yahoo Finance, 28 Sept. 2024, finance.yahoo.com/news/invested-1-000-gamestop-stock-180022433.html.
Chung, Juliet. "Melvin Capital Lost 53% in January, Hurt by GameStop and Other Bets." The Wall Street Journal, 21 Jan. 2021,
www.wsj.com/finance/investing/melvin-capital-lost-53-in-january-hurt-by-gamestop-and -other-bets-11612103117.
Hassoun, Amelia, et al. Practicing Information Sensibility: How Gen Z Engages with Online Information. 2023, https://doi.org/10.48550/ARXIV.2301.07184. 7. NielsenIQ, et al. "Spend Z." NielsenIQ, nielseniq.com/global/en/landing-page/spend-z/. Accessed 2026.
