A new report from data company Attain and agency group Dentsu, released this week, combines real purchase data with a consumer survey to map how the youngest adult shoppers in the US use their money. The headline finding: Gen Z spends 25% less than other generations, yet spreads that smaller budget across 6% more merchants.
For marketers, that’s the uncomfortable bit. A smaller wallet split across more places means every brand gets a thinner slice, and fewer guarantees it’ll get one next time.
Brand names matter. Loyalty doesn’t
The research points to a contradiction that sums up the generation. Gen Z shoppers are 25% more likely to value brand names over an item’s price, but 18% less likely to buy from the same brands repeatedly.
In other words, brand still carries weight at the moment of purchase. It just doesn’t lock anyone in.
“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 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.”
Living in the present
Two-thirds (66%) of Gen Z’s day-to-day spending goes on discretionary categories: eating out, entertainment, travel, clothing, electronics, beauty and rideshares. Across all generations, that figure is 58%.
The categories taking a disproportionately large share of Gen Z budgets include:
- public transit, taxis and rideshares
- gyms and fitness centres
- casinos, betting and prediction markets
- video games
- restaurants
Groceries, meanwhile, take up a much smaller share of their wallets, even though Gen Z buys groceries as often as anyone else.
Convenience first, but coupons too
Having grown up with on-demand everything, Gen Z is more likely to prioritise saving time and one-stop shopping than chasing a deal on a regularly priced item or relying on everyday low prices.
And yet they’re also 7% more likely than the general population to use coupons. Convenience and thrift aren’t opposites here; they’re both tools, picked up depending on the moment.
What brands should take from it
The report’s argument is that the old funnel, where awareness builds loyalty and loyalty drives repeat purchase, doesn’t map neatly onto a shopper who values brands but keeps moving between them.
Aisha Khan, head of retail and commerce at Dentsu North America, framed it as an organisational problem as much as a creative one: “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.”
Put simply, if your view of the customer stops at the edge of your own store or platform, you’re only seeing part of how Gen Z actually shops. Winning them once is possible. Winning them again is the real brief.
