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Gen Z is reshaping the retail playbook by mixing thrift and splurge. They trim everyday costs yet spend on pieces that say something about who they are. Brands are tuning into those shifts, leaning on discounts, culture moments and new channels like SMS to stay relevant.
Why Gen Z shops both thrift and luxury
Younger shoppers are living with tighter budgets, but they still buy thoughtfully. Experts note Gen Z is not pulling back so much as reprioritizing. They cut on routine purchases and redirect money to items that show up in photos or last for years. That mix of practicality and identity-driven spending is now a key retail trend.
- Visible buys: bags, coats and statement pieces often win over disposable apparel.
- Micro-treats: small, feel-good purchases tied to trends or seasonal moments.
- Value hunting: coupons, deal sites, and tech tools help stretch income.
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What counts as a splurge for Gen Z—and why
Many in this cohort value purchases that feed emotional or aesthetic needs. Some buy adaptogens or wellness products for mood and focus. Others chase viral trends or invest in a single high-quality item that delivers confidence every day. Retail leaders say these choices often build loyalty when the product aligns with an emotional payoff.
Examples of this behavior:
- Seasonal drinks and viral recipes drive small, shareable purchases.
- Luxury items are justified when they deepen the owner’s personal brand.
- Younger customers influence older shoppers as trends spread across generations.
Secondhand, group buys and payment hacks
Saving looks creative for Gen Z. They embrace resale platforms, group purchasing and installment plans to access pricier goods. Resale marketplaces are reporting faster growth as younger buyers enter earning years. Some students pool cash to buy luxury goods and rotate custody. Others use buy-now, pay-later options to smooth cash flow.
Key data and behaviors:
- Nearly half of Gen Z report not feeling financially secure.
- A recent Fed study found 46.1% of users of certain payment products were under 36.
- Resale platforms see strong adoption from millennials and Gen Z buyers.
How brands are responding to the new mix-and-match shopper
Retailers are adapting messaging and offers to attract young, selective buyers. Some firms emphasize long-term value and product longevity. Others chase cultural moments with fast, visual campaigns. Executives report younger customers often have higher retention and drive wider brand awareness when approached correctly.
SMS and holiday promotions: a case study
One footwear brand expanded its text program from customer support to promotions. Shoppers can opt into SMS when they sign up for email. The brand uses short, timely messages for early access and flash deals, reserving longer content for email. Their Cyber Week plan includes early links, one-day color drops at half-price, and reminders about shipping deadlines. The goal is to be useful, not intrusive.
Practical tactics brands are testing:
- Time-sensitive offers sent at local morning hours.
- Segmented messages based on past purchases.
- Limited, intentional SMS to add value instead of noise.
Retail moves and market headlines to watch
- Skims reached a new valuation after fresh fundraising.
- Skechers is positioning itself to appeal more to performance runners.
- Adidas is partnering with local running-store franchisors for community events.
Recent brand updates and product news
- Bogg accelerated a tote launch to offset tariff-driven revenue gaps.
- Infant formula brand Bobbie expanded into Costco amid rapid retail growth.
- Demand for Advent calendars keeps growing for companies like Bartesian and Bonne Maman.
