ICSC Survey Shows That Gen Z Consumers Are Career-Driven, Credit-Averse and Tempted by Immersive Retail

Narratives around Gen Z in recent years have implied that this cohort is more focused on work life balance than career growth and willing to pay a premium for the convenience of products and experiences regardless of their financial situation. ICSC’s new study, The Rise of the Gen Z Consumer, takes a close look at the behaviors of Gen Z and paints a different picture.

While many believe that Gen Z is more focused on travel and leisure, putting their career on the backburner, ICSC’s survey demonstrates the opposite. Gen Z is five times as likely to value successful careers over having the latest fads, as 63% of respondents cite having a successful career as their top priority. Anecdotally, several Gen Zers interviewed by ICSC view their career as a necessary step to reaching other goals that currently rank lower on their list. Half cite time to pursue personal interest/hobbies as a priority, while 40% name marriage or having a family. Only about a third of Gen Z rank buying a home as a priority at this stage in their life.

According to our report, Gen Z is keenly aware of the state of the economy as it relates to their spending. In fact, 78% of Gen Z are concerned about the U.S. economy and consequently show a generational preference for off-price and discount retailers (48%).

This cohort also exhibits healthy spending habits and financial literacy. Forty-one percent of respondents report saving more than they spend, and Gen Zers are more likely to reach for their debit card or cash over a credit card, allowing them to better keep track of their expenses and manage debt. As a generation that spent their formative years watching family members navigate the Great Recession and then experienced the economic impact of the COVID-19 pandemic themselves, they’ve developed a penchant for planning for instability and uncertainty.

Beyond career goals and financial planning, our survey also reveals Gen Z’s shopping habits. Although they’re often described as “digital natives,” they’re truly an omnichannel generation. Nearly all respondents (97%) shop at brick-and-mortar stores, prioritizing the ability to see, touch, and try products and the instant gratification of walking out of the store with the product they want. A similar number of Gen Zers, 95%, also say they shop online.

Social media has a notable influence over Gen Z’s shopping habits, with 85% saying that social platforms like Instagram and TikTok influence their purchasing decisions. However, influencers are not the primary driver for these decisions. Instead, 56% say recommendations from family and friends carry the most weight, followed by reviews on product websites (54%), and interactions with store associates and seeing the product in person (43%).

While price is the most important factor for Gen Z when making a purchase, saving money at the register isn’t the only thing on their mind. Forty-eight percent of respondents are willing to spend extra money for speed and convenience during the shopping experience.

ICSC’s survey also shows that Gen Z has a distinct sense of brand loyalty with a proclivity for brands whose values align with their own. More than half (56%) of respondents are willing to spend more on products that are sustainably sourced.

While they may be the first “digitally native” generation, Gen Z is defying many stereotypes through their embrace of physical retail as much as online retail, budget-conscious and financially healthy habits, and prioritization of their careers. As this generation continues to mature in their spending power, it’s imperative for the Marketplaces Industry to invest in meeting the needs of Gen Z as a crucial demographic and influential consumers.?