CURATED READS FOR GEN Z—AND THEIR Z-CURIOUS COLLEAGUES

first up

Welcome back! This week, we’re talking about Gen Z’s shopping habits.

Consumer goods makers are seeing volume declines (translation: fewer goods sold) that are pretty unusual for the industry. The quick and dirty: consumers are somewhat optimistic about the economy—and spending more—but prices are weighing on them. As a result, they’re cutting back on the number of purchases they’re making across categories, including grocery, health and beauty, and household items.

But there’s one group giving consumer businesses hope. Gen Z went grocery shopping one to two additional times per month and shopped for health and beauty products one additional time every other month in 2023, according to new research from McKinsey senior partner Warren Teichner and coauthors. When it comes to online purchases, Gen Z unit sales increased at nearly two times the rate of other generations. Gen Z also helped cushion volume declines in mass- and dollar-store channels.

Consumer businesses can more effectively reach Gen Z consumers if they can understand why Gen Zers’ shopping habits were distinct from other age groups. The average Gen Zer increased the number of trips they made to the grocery store in 2023. Why? A few different factors are at play here: Gen Zers “selectively splurged” on dining out in 2023, opting to cook at home as they grappled with inflation, student loan payments, and high housing costs. Grocery stores also became destinations for Gen Zers eager to get their hands on culinary status symbols. 

As for the increases in online shopping volume: these digital natives may be used to shopping online, but the way they do so is evolving and different from how older generations shop. In addition to shopping online more frequently than older generations, Gen Zers have some emerging nuances characterizing their behavior. For example, some are “quiet shopping”—browsing online shopping sites during the workday, a behavior related to the “quiet quitting” trend. Others are regretting their online impulse buys. Consumer businesses should also know that Gen Zers actually enjoy shopping in person, and have even been credited with revitalizing the mall experience.

Reaching these consumers can help stave off declines in consumer goods unit sales—but only if done right. Consumer businesses can invest in the channels Gen Zers are shopping in (which means bringing convenience to online shopping and excitement to in-store experiences), as well as in brand loyalty. 

Meet you at the mall (or at the thrift shop to hang with the tweens). 

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— Edited by Alexandra Mondalek, editor, New York