New data reveals that Gen Z is spending 25% less overall while diversifying their shopping across 6% more merchants, challenging traditional brand loyalty models.
The traditional image of the loyal consumer is fracturing. As Gen Z enters its prime as a dominant engine of the economy, their wallets are telling a story that defies conventional retail strategy—one of smaller budgets spread across a wider landscape of merchants.
New research released Thursday by Attain and Dentsu confirms that while Gen Z shoppers spend 25% less than other generations. they are shopping at 6% more merchants. They are 25% more likely to value brand names over a lower price tag. yet they remain 18% less likely to commit to those same brands repeatedly. This volatile loyalty is reshaping how companies must view consumer demand.
“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 the Chicago-based firm Attain. “When you can see what people actually buy across retailers and categories. you can begin to understand the full picture of consumer demand. not just the portion visible within any single platform.”.
For a demographic largely in their late teens and 20s, the present holds more weight than the future. Gen Z directs 66% of their daily spending toward discretionary categories—including dining out. entertainment. travel. clothing. electronics. beauty. and rideshares—compared to 58% across all other age groups. Their bank statements reflect an appetite for convenience and experience: they favor spending on taxis. rideshares. public transit. gyms. video games. restaurants. and. notably. casinos and prediction markets. Groceries claim a smaller slice of their wallets, even though they shop for them as often as any other generation.
This behavior creates a complex paradox for retailers. While Gen Z prioritizes saving time and the ease of one-stop shopping over seeking out everyday low prices, they remain 7% more likely to use coupons than the general population.
This fragmented behavior forces a reckoning for legacy marketing. Brands can no longer afford to silo their audience research from their media buying or commerce strategies. As Aisha Khan. head of retail and commerce at Dentsu North America. noted. “Gen Z’s fragmented spending behavior requires brands to connect audience understanding. media planning and buying. commerce. and measurement rather than treating them as separate disciplines.”.
Gen Z consumer spending retail trends Dentsu Attain market research brand loyalty