For decades, grocery has followed a predictable pattern. Cater to the weekend rush and the post-work crowd → build routines → earn customer loyalty.
But today’s grocery world looks a whole lot different, especially among younger shoppers.
Millennials and Gen Z, who now account for over half the global population and control hundreds of billions in spending power are:
- Shopping more online
- Spreading their trips across weekdays
- Hunting for unique products that elevate their palate
How do we know? We took a really deep dive into the $3B in spend data we collected from over 47M+ cardholders last year.
Here are 4 surprising ways the younger crowd is changing the grocery game.
1. Weekdays are grocery prime time
For Gen Z and Millennials, 10am Saturday grocery runs are not the norm.
Younger shoppers are far more likely to spread grocery trips throughout the week. Our data shows that this demographic spent 70.8% more on weekdays than weekends.
To put this in context: weekday spend is about 27% higher than weekends across most retail categories. That means, for grocery, weekdays stand out even more (a 43.8% jump above the average).
What’s driving this shift? We can’t say for certain. But we have some theories:
- Flexible remote work schedules allow people to pop into stores whenever they have a break.
- Younger consumers (especially those that live in cities) might want to shop smaller and more frequently instead of stockpiling.
- This population shops when they get a good deal, rather than following a regular routine.
For grocers, this presents a big opportunity to catch Gen Z and Millennial shoppers with a deal when they’re inclined to spend.
Extra cash back offers on weeknights, for example, could not only drive extra trips, but larger basket sizes. A 15% off cash back offer could turn a midweek stop for oatmilk into a full cart.
Encouraging weekday traffic with promos can also balance store flow, creating a better and more manageable store flow for everyone.
2. Online grocery shopping has become a strong habit
Online grocery shopping spiked during the pandemic across all generations. But for younger consumers, it’s remained a permanent habit.
44% of Gen Z and 42% of Millennials order their groceries online every week, and over half of them have increased how often they shop for groceries online in the past year.
But it’s not just about convenience. Online ordering has helped them discover new brands and products, feel smarter about price comparing and hunting for digital deals, and share their finds on social media (TikTok grocery hauls are a big deal, more on that next).
This translates to a few key investment areas for grocery brands:
- A smooth online shopping (and in-store pickup) experiences
- Self-checkout and scan-and-go tech (which 63% of Gen Z shoppers prefer at grocery stores)
- Cash back offers on items Gen Z and Millennials folks were already going to add to their cart
3. Grocery as a status symbol
Grocery spend made up 8% of total spend across all categories we examined, beat out only by big box retailers (23%) and quick serve restaurants (10%).
One of the reasons why? Groceries signal taste, values, and even social standing for younger shoppers.
According to McKinsey: “Grocery stores have also become destinations where they seek out culinary ‘status symbols’: trending brands, unique products, and fresh ingredients that feed their social lives as much as their dinner tables.”
Here’s why:
- They see niche, buzzworthy products on social media — and then hunt for them in stores (turns out half of US Gen Z consumers are open to exploring new brands).
- Unique SKUs, like non-alcoholic spirits, specialty hot sauces, and premium snacks are cool to post or talk about.
- Sustainability and ethically sourced ingredients matter more than ever.
Besides stocking up on trendy foods, you could capitalize on this behavior by offering cash back to customers who try unique brands and flavors.
4. Loyalty programs keep younger consumers around
64% of Gen Z and 59% of Millennials are swayed by deals, promotions, and coupons — and that these “heavily influence what brands they choose when shopping online for groceries.” And a Bank of America consumer survey found that 69% of consumers cite cash back as one of their most valued reward categories.
At Kard, we’ve seen the power of rewards-based ads, catching the attention of new customers and driving them toward a purchase:
- A nationwide drug store chain saw 14x ROAS with SKU-data powered card-linked offers
- Fazoli’s, a fast-food chain, brought in 81% new customers in its first Kard campaign.
- A major clothing retailer recently drove 167% WoW revenue growth with a cash back offer campaign targeting younger Millennial and Gen Z consumers in just 3 months.
To draw in more customers — and reward the ones you already have — consider launching item-specific rewards, location-based offers, category discounts, or even “offer boosts” to capture incremental sales that might otherwise go to competing stores.
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