Last year, we put together an extensive report on how younger consumers shop — based on $3B of transactions made by the 47M+ users in our network.
The data revealed four key trends that flipped our assumptions about young shoppers, and will likely impact your 2026 strategy. Before we dive deep into those insights, let’s take a quick look at how and why these digital natives actually buy (which may spark some ideas, too).
A peek into the typical young shopper’s buying journey
We’ve all evolved our shopping habits with the rise of the internet and AI, but the Gen Z shopping journey is particularly unique — and fragmented. Their decision-making is shaped by constant channel switching, pricing sensitivity (as we mentioned), and peer validation.
Here’s what a typical journey might look like:
1. Discovery through social
An influencer try-on or product demo on TikTok or Instagram plants the initial idea.
What this means for you: If your brand isn’t present on these channels, you’re missing out on the earliest chance to build awareness.
2. Passive browsing
Next, shoppers move to other social media platforms to casually scroll, compare, and collect options. At this point they’re not ready to buy, but are forming impressions of which brands feel relevant.
What this means for you: If your brand isn’t on adjacent channels, you may want to beef up your omnichannel strategy.
3. Website research
A few days later, they might visit an actual product page and may even add an item to cart.
What this means for you: Many are using Claude or ChatGPT for this research — in fact, OpenAI has a partnership with Shopify — and more might even want to use it for the entire buying lifecycle. In September, announced Instant Checkout (built with Stripe). That means your products have to rank in LLMs to be seen and purchased.
4. Peer input
But before they actually buy anything, they seek out the opinion of friends and family, and read authentic customer reviews — just to make sure it’s the product they really want and need.
Chris Bajda, Founder of Groomsday, incorporates this into his creative:
“Rather than placing a monogrammed flask with a typical discount callout, I created a video short that depicts three groomsmen using it on a tailgate and then at a backyard wedding rehearsal. The ad is framed as a ‘how to get more use out of one gift’ story, so the audience sees value before price.”
It increased click-through rates by 28%.
What this means for you: It’s time to (1) get on Trustpilot and other review platforms and (2) figure out a way to get your customers to leave feedback.
5. Conversion via promos or rewards
Often, the trigger that closes the loop is a well-timed incentive, like a discount or cash back offer surfaced in a banking app. And this last step isn’t random. It’s rooted in three core motivations that drive every decision younger shoppers make.
Digital natives are motivated by 3 things
If you’re not designing your strategy around all three, you’re only tapping into part of your potential revenue.
1. Price sensitivity
Younger consumers shop with intention, always looking for the best value before making a purchase.
Discounts, promotions, and flexible payment options play a key role in their buying decisions. In a study by Afterpay, the primary reason both Gen Z and Millennials continue purchasing from a brand is the availability of good discounts and sales.
2. Values
Beyond price and convenience, Gen Z and Millennials want to support brands that align with their values. Sustainability, ethics, and brand authenticity play a major role in their purchasing decisions. Per Deloitte, roughly two-thirds of Gen Zs (64%) and millennials (63%) are willing to pay more to purchase environmentally sustainable products or services.
But that doesn’t mean they’re loyalists. McKinsey reports that half of US Gen Z consumers are open to exploring new brands, and that Gen Zers and millennials are especially susceptible to brand switching.
3. Omnichannel availability
Unlike older generations that separate online and offline shopping, digitally native consumers aren’t afraid to use multiple buying channels. 95% of Gen Zers and 94% of Millennials use their phones to shop. And Nielsen IQ found that 53% of Gen Zers have used “buy” buttons on social media networks.
Yet Faire found that 61% of Gen Z adults reported they are more likely to shop in-person than online compared to a few years ago.
Younger generations shop in-store, online, and directly through social media — whichever gives them the best deal and aligns with their values.
4 trends that should be on your radar
Understanding Gen Z and Millennial buying journeys and motivations is one thing. Knowing how to act on them is another. Here are four data-backed trends from our commerce media network that should inform your approach this year.
1. Young consumers shop more during the week
Our data showed that average daily spending on weekdays was 27% greater than weekends across most retail categories.
While we don’t know for sure, this could be because many Millennials and Gen Z’ers work from home — and some may still be in school — which gives them more flexibility to shop during traditional work hours.
What you can do
Try day-specific promotions and rewards-based offers to encourage consumers to buy online or in-store. More specifically, you could show these ads on Sunday or Monday to drive purchases during the week.
2. Millennials spend big in a few categories
Our Modern Consumer Journey analysis showed that big box stores (Amazon, Target, Walmart, etc.) have the biggest average order value across all verticals, at $33 — 22% higher than the average AOV.
But there are some discretionary categories that have much, much higher AOV:
- Sporting goods: $85 (+215%)
- Department stores: $65 (+141%)
- Beauty: $62 (+130%)
- Fashion & apparel: $59 (+119%)
- Home goods: $59 (+119)
What you can do
Though consumers are watching their wallets right now, they will selectively splurge. One good way to get consumers to make those bigger purchases is to run cash back offers — a 5% or 10% cash back could help shoppers feel like they’re getting a good deal on a big ticket item they were already thinking about buying.
3. Gen Z relies on cards for everyday necessities (but uses other payment methods, too)
In our dataset, financial services, gas & convenience, and grocery collectively represent 18% of total spend — with debit, credit, and EBT card transactions (as well as receipt data) driving a majority of those transactions. That pattern tells us something simple, but important: younger consumers depend on their cards for everyday necessities.
But Gen Z isn’t just swiping debit or credit. They’re experimenting with BNPL and other modern issuers, too (36% of 18 to 24 year olds said they would choose a fintech service over a traditional bank). And they expect retailers to offer them a wide range of options for payment.
What you can do
Accepting those services is the first step, but that can be tough if you don’t have the infrastructure in place. Partnering with performance-based rewards platforms that already have a network of banking apps, rewards platforms, and fintech that young consumers use can expand the audience your brand serves (and boost your revenue).
4. Q1 is prime time for discretionary retail
For how much brands spend on ads in Q4, you’d think a bulk of the buying happened during the holiday season. While that is true for some categories — and even the average American — our proprietary spend data shows Q1 actually shows the highest spend for others.
Discretionary retail categories that all show stronger performance in Q1 than Q4 are:
- Sporting goods: Q1 ($104) 53% higher than Q4 ($68)
- Department stores: Q1 ($76) 31% higher than Q4 ($58)
- Beauty: Q1 ($73) 59% higher than Q4 ($46)
- Fashion & apparel: Q1 ($67) 22% higher than Q4 ($55)
What you can do
If you operate in one of these categories, you’re better off saving your budget for later when paid campaigns are a whole lot cheaper. Pay-for-performance brand awareness strategies, like rewards-based marketing, can be a cost-efficient way to run an awareness play in Q4 and reap the benefits in the new year.
Win in 2026
You know when young consumers are buying, what they’re spending their money on, and how they’re paying. Now it’s about showing up at the exact right moment with the right offer.
Kard uses predictive AI and first-party transaction data from millions of Gen Z and Millennial shoppers to put your brand in front of them when they’re ready to buy.
Want to see it in action? Sign up for a demo today.
