Retail’s Reinvention: How Gen Z is transforming the next era of commerce
Retail therapy isn’t what it used to be. Gone are the days of strolling the mall with bags in hand.
For Gen Z, who now make up nearly a quarter of the global population and are stepping into their earning power, shopping is still a feel-good activity. But now, the joy comes from meaningful discovery, emotional connection and a sense of purpose.
We’re officially in the era of experience-led commerce. This generation is moving away from transactional shopping and turning purchases into a statements about who they are, what they value, and how they live. This shift is pushing brands to rethink everything from the online experience to the in-store vibe.
From Scroll to Store: Why Gen Z Blends Digital Discovery with In-Store Immersion
Gen Z grew up online. They’re used to swiping, scrolling, and having infinite options at their fingertips. But too many choices can backfire. In fact, research shows that 78% say they feel overwhelmed while shopping online, and 79% say it can feel lonely.
That’s where the physical world comes in. Gen Z loves the convenience of digital, but they still want to see, touch, and try products in person. It’s common to spot something in a TikTok haul, read reviews on Reddit, browse on their phone, then head to a store to check it out in real life. And through all of that, they expect everything to feel consistent and connected. It’s not a contradiction, it’s intentional.
In fact, 71% of consumers say sensory and hands-on experiences pull them into stores. Especially in categories like beauty and fashion, Gen Z wants to try before they buy. It’s why stores are evolving into more than just points of sale and are becoming places for connection, storytelling and inspiration.
Shoppable Ads Work, But Only if the UX Delivers
Gen Z knows advertising inside and out, and they’re not easily fooled. They’ll scroll past anything that feels too pushy. But when the ad is done right, they’ll engage and buy. That’s why shoppable ads on TikToks, Instagram, and Snap are so powerful. They blur the line between content and commerce.
The catch is that many brands focus on making their content look great but forget to make it easy. If clicking on a product link leads to a clunky site, an uninspiring product detail page or a long checkout process, Gen Z will move on. They expect everything to be smooth, simple and fast without disrupting the experience of the platform.
It’s not just about convenience. It’s about trust. Poor experiences can quickly damage brand credibility. The most effective shoppable content feels natural and seamless, with functionality that fits the tone and pace of where it’s being viewed.
The AI Factor: More Than Just Efficiency
AI is changing the game across every part of retail – from smarter recommendations to better ad targeting and personalized experiences. With the global AI market is expected to reach $243.70 billion this year, retail is positioned to see big benefits.
But Gen Z doesn’t just want better tech. They want tech that aligns with their values, they’re looking for brands that use AI to make things easier and more relevant, but also fair, transparent, and responsible. The future of retail tech needs to be as thoughtful as it is powerful.
Rediscovering the Joy of the Unexpected
While online shopping wins on convenience, it can sometimes feel a little flat, too optimized and too expected. The excitement of stumbling across something new – something you didn’t even think you needed – has faded in many digital experiences.
That spark of discovery is exactly what Gen Z wants back. Over half of shoppers say they feel a thrill during the early stages of brand exploration. And 46% say that discovering a new brand brings a genuine sense of excitement. Brands that tap into emotional high, whether it’s through curated in-store experiences, limited-edition drops, or scroll-stopping ads, will be the ones that truly stand out.
So What’s the New Retail Playbook?
Gen Z is raising the bar. They want to feel seen and understood across every channel and every touchpoint. They expect personalized, meaningful experiences and not just products. That means brands need to show up wherever Gen Z is, from digital ads that inspire to store aisles that surprise, with tools and technology that make the journey easier and more engaging.
The new generation that’s redefining brand loyalty around trust, immediacy and seamless digital experiences means legacy strategies won’t cut it. The brands that succeed won’t be the ones shouting the loudest. They’ll be the ones who listen, adapt and create moments that matter. Because for this generation, shopping isn’t about buying but about belonging.
Sherry Smith is executive managing director, Americas, Criteo, a global commerce media company whose platform connects marketers and media owners to deliver richer consumer experiences from product discovery to purchase.
