Generational Shifts in Shopping: How Gen Z and Millennials Are Redefining Retail

The retail landscape is undergoing a profound transformation, driven by the evolving expectations and behaviors of younger generations. Gen Z and Millennials are not just digital natives—they are digital pioneers, setting new standards for what seamless, engaging, and personalized shopping should look like. Their preferences are reshaping both online and in-store experiences, compelling retailers to rethink everything from technology investments to loyalty strategies. Understanding these generational nuances is essential for brands seeking to future-proof their offerings and build lasting customer relationships.

The Digital-First Mindset: Seamless, Omnichannel Journeys

Gen Z and Millennials expect shopping to be frictionless, whether online or in-store. For these cohorts, the boundaries between digital and physical retail are increasingly blurred:

Omnichannel Engagement: A striking 86% of Millennials and a significant share of Gen Z use retailer apps while shopping in-store, leveraging features like real-time inventory checks, personalized offers, and digital navigation. This behavior is far more prevalent among younger shoppers than older generations, who tend to rely on traditional in-person experiences.
Digital Preparation: Over half of younger consumers routinely check online inventory before visiting a store, ensuring their trip is purposeful and efficient. This digital preparation is especially pronounced in digitally mature markets like Sweden, where 53% of shoppers always or often check stock online before heading out.
Mobile-First Shopping: Globally, more than half of consumers now use smartphones or tablets for the majority of their online purchases, with Gen Z and Millennials leading this shift. They value mobile apps for their convenience, speed, and ability to deliver personalized recommendations and rewards.

Personalization and AI: The New Standard

Younger generations are not just open to AI-powered personalization—they expect it. For Gen Z and Millennials, personalization goes beyond addressing them by name; it means anticipating their needs, curating relevant product suggestions, and delivering tailored offers in real time. Key trends include:

Hyper-Personalization: The majority of Gen Z and Millennials view personalization positively and are more likely to engage with brands that use AI to recommend products, optimize search, and streamline checkout.
Conversational Commerce: While adoption of AI chatbots and virtual assistants is still growing, younger shoppers are more likely to use these tools for product discovery and support, compared to Gen X and Baby Boomers, who are less familiar or comfortable with such features.
Data Exchange for Value: Gen Z and Millennials are generally more willing to share personal data in exchange for exclusive discounts, loyalty rewards, and personalized experiences—provided brands are transparent about data use and privacy.

Interactive and Social Shopping: Beyond the Transaction

For younger consumers, shopping is as much about experience and community as it is about the transaction itself. They are driving the rise of:

Social Commerce: Platforms like Instagram and TikTok are central to product discovery and purchase for Gen Z and Millennials. They are more likely to shop via social media, influenced by authentic content and peer recommendations.
AR/VR and Virtual Try-Ons: Interest in interactive features such as augmented and virtual reality is highest among younger shoppers, who seek immersive ways to explore and try products online before committing to a purchase.
In-Store Events and Experiences: Gen Z, in particular, is more likely than older generations to participate in in-store pop-ups, product demonstrations, and experiential retail. However, the appetite for such events varies by region and culture, with some markets (like Sweden) showing more interest in efficient, routine-driven shopping than in added entertainment.

Contrasting Older Generations: Stability, Simplicity, and In-Person Trust

While Gen Z and Millennials are pushing the boundaries of digital retail, older generations—Gen X and Baby Boomers—tend to prioritize stability, simplicity, and the tactile aspects of shopping:

Preference for In-Store Shopping: A vast majority of older consumers still prefer to shop for certain items in-store, especially perishables, fashion, and luxury goods. The ability to see, touch, and try products, as well as the immediacy of taking items home, remain key drivers.
Skepticism Toward AI and Data Sharing: Older shoppers are less likely to use or trust AI-powered features and are more cautious about sharing personal data, often requiring clear value and robust privacy assurances.
Loyalty to Established Routines: Many in these cohorts express a strong desire to maintain their current mix of online and offline shopping, showing less interest in experimenting with new channels or technologies.

What Retailers Need to Do: Segment, Personalize, and Future-Proof

To thrive in this era of generational divergence, retailers must:

Segment Experiences: Recognize that one-size-fits-all strategies no longer work. Tailor digital and in-store experiences to the unique preferences of each generation—offering interactive, tech-enabled journeys for younger shoppers and reliable, straightforward service for older ones.
Invest in Omnichannel and Mobile: Ensure seamless integration across all touchpoints, with real-time inventory, unified loyalty programs, and flexible fulfillment options like buy-online-pick-up-in-store (BOPIS).
Leverage AI for Personalization: Use data and AI to deliver hyper-personalized recommendations, offers, and content—while maintaining transparency and trust around data usage.
Embrace Social and Experiential Commerce: Develop authentic, community-driven content and interactive features that resonate with Gen Z and Millennials, both online and in-store.
Prioritize Simplicity and Trust: For all generations, frictionless checkout, clear product information, and robust privacy protections are non-negotiable. Remove barriers and build trust at every step of the journey.

The Path Forward: Building Resilient, Generationally Savvy Retail

The future of retail belongs to brands that understand and act on generational differences. By segmenting experiences, investing in digital innovation, and delivering both personalization and simplicity, retailers can meet the evolving expectations of Gen Z and Millennials—while continuing to serve the needs of older shoppers. This generational intelligence is the key to building loyalty, driving growth, and ensuring relevance in a rapidly changing retail world.

Ready to tailor your retail strategy for the next generation of shoppers? Publicis Sapient partners with brands to unlock the power of digital transformation—bridging generational divides and creating experiences that delight every customer, everywhere.