How Gen Z and Millennials are reshaping shopping

From avoiding human interaction to shopping during work hours, younger consumers are rewriting the rules of retail, forcing businesses to catch up, according to a new report.

The survey from GoDaddy found that Gen Z and Millennials are embracing shopping habits that prioritize convenience, automation and minimal human contact. Retailers that fail to offer mobile-friendly websites, digital wallet options, or flexible pickup services risk losing out — especially with younger shoppers who are quick to abandon a cart if the experience isn’t seamless.

This is all a shift that’s reshaping the way businesses need to think about customer experience. According to the GoDaddy Consumer Pulse survey of consumers, more than half of Gen Z (54 per cent) and Millennials (50 per cent) prefer shopping methods that let them avoid other people, such as online shopping, self-checkout or buy online, pick up in-store (BOPIS).

In contrast, only 29 per cent of Gen X and Boomers feel the same way.

Digital-first, people-last

The generational divide is stark. Fifteen per cent of Gen Z and 10 per cent of Millennials say they’d rather talk to a chatbot than a human customer service rep — compared to just 3 per cent of older generations.

And when it comes to pickup, 86 per cent of Gen Z and 76 per cent of Millennials use curbside or in-store pickup at least once a month, with about a quarter doing so weekly. Half of Gen X and Boomers, meanwhile, never use these services.

Spending without a budget

Younger shoppers are also more likely to use buy now, pay later (BNPL) services to purchase items they can’t afford — 39 per cent of Gen Z and 43 per cent of Millennials admit to doing so, compared to just 22 per cent of Gen X and Boomers.

And they’re not waiting until after hours to shop. More than half of Gen Z (54 per cent) and Millennials (50 per cent) say they shop online while at work, compared to only 18 per cent of older consumers.

Digital wallets are a must

More than half of Gen Z (54 per cent) and 41 per cent of Millennials have abandoned a purchase because a retailer didn’t accept digital wallets like Apple Pay or Google Pay. One in 10 Gen Z shoppers say they only use their phone to pay in-store — and 5 per cent don’t even carry a physical wallet anymore.

Shared frustrations

Despite their differences, all generations agree on a few things. More than half of all consumers (51 per cent) say they’ve felt anxious using point-of-sale devices, especially younger shoppers. And while digital payments are on the rise, most people (59 per cent) still carry a physical wallet and use credit cards in-store.

Phones are also becoming the go-to device for big purchases. Over half (56 per cent) of consumers prefer to use their phone for purchases over $150, with that number rising to 70 per cent among Gen Z.

“Gen Z and Millennials want to shop online from their phones and be left alone,” said Alex Avramenko, head of commerce growth at GoDaddy. “These aren’t just trends. Consumers have consistently shown their desire for simple, convenient ways to shop and pay will make or break a sale.”

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