In 2030, Generation Z will make up 20% of the U.S. population—and by 2034, the generation will overtake Boomers and have the highest spending power in the country, according to the Census Bureau and World Data Lab.
Technomic defines Generation Z as the people born between 1993 to 2012, or those currently aged 12-31, making the generation a very large population, spanning multiple life stages. As Gen Z gets older, more and more will enter the workforce and spend more money as consumers, Donna Crecca, principal at Technomic, said in the NACS Show Education Session “Spilling the Tea on Gen Z.”
According to Crecca, people in Gen Z are omnichannel consumers. Their path to purchase typically begins online, and she noted that almost half of this generation makes purchases via social media. Reviews and recommendations (online and word of mouth) are very important to this generation, and they are making purchases based on them.
Crecca highlighted that this generation is very pragmatic and very discerning—they look at what brands do and their values and choose to visit and spend based on that. And once they form an opinion, it can take a lot to change it.
Something unique to this generation is that they’re raised on foodservice, so ordering food or going out to dinner on a Tuesday night is normal for them—it’s “ingrained in their lifestyle from a very young age. It’s a habit and it’s their expectation that they can source food away from home,” Crecca said.
Gen Z at Work
When Generation Z is looking for a job, there are six key factors (aside from wages) that they are taking into consideration: Values, opportunities for growth, transparency, respect, flexibility, and constructive feedback. Vince Seery, director of food and beverage at E-Z Stop Food Marts Inc. in east Tennessee, noted that, “those things might be specific to Gen Z, but they resonate across all our generations.”
When it comes to transparency, Seery stated that Gen Z insists on knowing the full scope of the job when hiring—including the less glamorous aspects of the job. “Don’t insult Gen Z’s intelligence. Don’t lie to them, because they won’t forgive you for that.”
Communication is also a high priority for Generation Z. One of the ways that E-Z Stop is reaching its Gen Z employees is through a texting platform, which it branded EZ Talk. Through E-Z Talk, the retailer can communicate its benefits and career growth opportunities and give appreciation and recognition.
The desire for giving feedback is alive and well in Generation Z, just like previous generations. And when it comes to providing feedback, Gen Z wants to see the store it works for doing something with the feedback: “Gen Z will give us one or two chances to address that feedback, and if we don’t, they vote with their feet and they’re out the door.”
With E-Z Mart, the retailer issues pulse surveys to its employees initially for onboarding, then again at 30, 60, 90, and 365 days, making sure to take action on the feedback. “Regular feedback mechanisms are essential, as are tools that support inclusion and continuous learning,” Seery said.
“This is a respect-seeking generation,” Seery said. "They value their personal time as much as, if not more than, work time.” Gen Z is much more likely than other generations to leave a company if it doesn’t offer flexibility. Seery stated that E-Z Stop has changed the structure of its shifts, moving away from the mindset of open, mid, and close shifts. The texting platform also makes it easy for employees to pick up and offer shifts as needed.
One thing about people in this generation is that they require companies’ actions to align with companies’ values. “So be transparent about your values and show that they’re integrated into daily operations,” Seery advised.
Gen Z as Consumers
Just more than half (51%) of Gen Z experiences information overload when shopping, Blake Anderson, senior solutions engineer at iSee Store Innovations, said. “We live in an age of information overload—endless options on Netflix, constant notifications and more,” he noted. Most of Gen Z appreciates when retailers offer personalized recommendations to help them cut through the noise and offer curated experiences that make their lives easier. In-store, it could be a section dedicated to best picks, top innovations, or something similar.
Anderson, and Crecca as well, said that it's not that Gen Z doesn’t appreciate options, it's just that the market can be saturated with so many options that young people don’t have enough time and information to differentiate between the products.
As digital natives, Gen Z expects and rewards tech-driven convenience. “[Gen Z] prefer[s] digital payments like Apple Pay or Cash App, and it’s not uncommon for them to leave their wallets behind because phones hold just about everything they need: Car keys, house keys, money, plane tickets and for those lucky enough, their driver’s license,”