As the festive season approaches, a seismic shift is underway in the retail sector, driven by the spending habits of Generation Z. This cohort, aged 13 to 28, is visiting malls in droves but wielding their wallets with unprecedented caution, prioritising value and experience over traditional brand allegiance.
The Value-Driven Shopper: Debt, Dupes and Declining Spend
A stark new report from PwC reveals that Gen Z is expected to slash its holiday spending by a substantial 23% this year—a far sharper decline than any other generation. This frugality is born from significant economic pressure. Kelly Pederson, retail leader at PwC, notes this generation is "extremely value-oriented" due to constraints like credit card debt.
Data from the New York Federal Reserve underscores this, showing Gen Z has the highest severe credit card delinquency rate of any generation, currently exceeding 10%. Faced with debt, inflation, and student loans, their purchasing decisions have become a careful calculus of price, social impact, and emotional resonance.
This pragmatic hunt for value has fuelled the explosive rise of 'dupe' culture. Approximately 82% of Gen Z plan to purchase dupes—affordable lookalikes of premium products, not counterfeit goods. "Dupes have become culturally a part of self-celebration," explains Pederson, framing the search as a "treasure hunt." However, this enthusiasm doesn't extend to gifting; both 19-year-old student Jonathan Singh and crochet business owner Holly Paik, 21, confirm they would never gift a dupe to someone else.
Malls Reborn: Experience Trumps Transaction
In a surprising revival, the once-ailing mall industry is finding a fervent new audience in Gen Z. Research from Ipsos indicates 58% of zoomers frequently visit shopping centres, not merely to shop but to socialise and experience events. "I think of going to the mall as a hobby," says Paik. "Even if I don't buy anything, it's fun to walk around with friends."
Forward-thinking malls are capitalising on this desire for experience. The American Dream mall in New Jersey and the Mall of America in Minnesota have hosted major events, from concerts by the Jonas Brothers to fan-meets with K-pop stars like Hwasa, Taemin, and the group Katseye. Adam Petrick, Chief Marketing Officer of American Dream, asserts, "Shopping should be more and more an event... It should be something that people are able to do together."
This experiential focus is key to building connection. Neil Saunders, a retail analyst at GlobalData Retail, warns that a hard sell feels "soulless" to Gen Z. Instead, membership programmes that offer perks and a sense of community can make the crucial difference in where a budget-constrained young consumer chooses to spend.
The New Path to Purchase: Research, Homemade Gifts and Cautious Loyalty
The Gen Z shopping journey is meticulous. Jonathan Singh describes a deep "rabbit hole of research"—comparing brands, analysing materials, reading reviews, and hunting for coupons—before ever visiting a store to see a product in person. This thoroughness erodes traditional brand loyalty. While 59% still buy from tried-and-trusted brands, many are openly exploring alternatives.
"I feel like being brand-loyal is very close-minded," Singh states. "I'm not going to be loyal to a brand for them to charge me $100 when I can find possibly a better-quality product for cheaper."
This mindset extends to gifting, where affordability drives creativity. Some are opting for homemade presents, like Paik's crocheted items, or gifting experiences, such as museum trips. "Memories are worth more than a gift," says 21-year-old office assistant Nicholas Asiedu.
Despite a strong stated concern for sustainability and social ethics, Pederson notes a clear limit: Gen Z is largely unwilling to pay a premium for it. Paik echoes this, wishing sustainable brands were more affordable.
Neil Saunders concludes with a stark warning for retailers: "This is the future generation... If you don't understand Gen Z and you're not capturing their loyalty or attention, you are storing up problems for the next 10 to 20 years." As their spending power nears an estimated $12tn by 2030, adapting to their values-led, experience-focused, and budget-conscious habits is no longer optional—it's essential for survival.
