Shades of Z: Decoding the next generation of consumers
Gen Z are smart savers
A third of Gen Z prioritise savings over splurging, showing a strong instinct to plan ahead.
The discovery shift
The customer journey is now fluid, moving instantly from content to commerce.
The green trade-off
Value vs values. 59% admit they talk more about sustainability than they practise.
Gen Z is rewriting the retail rulebook. Their values, habits, and expectations are reshaping the market. In 2025, Gen Z will influence over £26bn in retail spend, climbing to almost £40bn by 2035. (Source: Retail Economics)
'Shades of Z: Decoding the Next Generation of Consumers’ brings together insights from 1,500 UK Gen Z consumers to uncover four distinct cohorts within this influential generation. Beyond the familiar labels of digitally fluent, socially conscious, and values-driven lies a far more diverse reality.
Our latest research with Retail Economics reveals there’s no single Gen Z consumer. Their behaviours and priorities vary widely, creating both complexity and opportunity for retailers. Understanding these differences is key to shaping offers that resonate, building experiences that feel relevant, and investing in what will matter most in the years ahead.
As the first true digital natives, Gen Z’s comfort with technology and connectivity has fundamentally shaped their worldview, and their expectations of how brands should interact with them. For business leaders, the challenge is keeping pace with a generation that moves faster, expects more, and refuses to be boxed in.
So how can retailers adapt to the forces shaping Gen Z’s relationship with brands, from the rise of social commerce to the growth of resale and the redefinition of loyalty?
Gen Z retail trends: introducing the 'Shades of Z'
Shades of spend
Exploring financial priorities, saving habits and brand loyalty.
Gen Z save more than stereotypes suggest, spend selectively on what matters, and switch brands with ease. Our research reveals three distinct shades of spend, Smart Savers, Memory Makers and Style Seekers, each reflecting different priorities.
For retailers, the challenge is to offer Gen Z value, meaning and novelty, while recognising that their loyalty is conditional, and never guaranteed.
Shades of digital
Examining how Gen Z discover, shop and interact across platforms.
Gen Z are often labelled digital-natives and on the surface, that’s true. Two-thirds say they shop mostly or almost entirely online for non-food retail. But the picture is more nuanced. Physical stores remain vital for connection, experience and discovery.
Are you ready to meet them at every stage of the journey: blending social commerce, mobile-first payments and in-store experiences into one seamless pathway?
Uncover how Gen Z shops, from TikTok discovery to in-store browsing.
Shades of green
Assessing the tension between sustainability ideals and everyday choices.
Gen Z are often described as the “sustainable generation,” but our findings reveal a more complicated reality. While many talk about their values, budgets and convenience often drive different choices. Resale and pre-loved shopping are growing fast, but motivations vary between ethics and economics.
How can you make sustainable choices both accessible and affordable and embed values into every transaction in a way that Gen Z can see and trust?
Explore the gap between Gen Z’s sustainability ideals and everyday choices. See why resale and circular models are going mainstream and what this means for your product and pricing strategies.
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Retailers know Gen Z is the future, but their spending habits are complex and often contradictory. This report cuts through the noise of stereotypes, offering the clear, actionable data needed to understand the diversity within this generation.
Access our Retail economics report
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