Gen Z consumers are projected to generate over £26 billion in UK retail spending in 2025, rising to nearly £40 billion over the next decade, according to research by RSM UK and Retail Economics. A survey of 1,500 Gen Z shoppers found that one-third (34%) would save or invest an unexpected £1,000 windfall rather than spend it, while experiences such as travel or events (14%) slightly outpaced luxury goods (12%) in spending priorities.
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The generation is divided into four segments: 43% are "future flexors," focused on financial security; 24% are "experiential explorers," prioritising experiences and social occasions; 17% are affluent "trendsetters," highly image-conscious and socially connected; and 16% are "budget loyalists," younger, financially constrained, and value-driven.
Jacqui Baker, head of retail at RSM UK, highlighted Gen Z's pragmatism in spending amid current cost pressures, noting that saving remains a priority. Retail Economics CEO Richard Lim emphasised the diversity within Gen Z and warned that a "one size fits all" retail strategy risks missing their varying preferences.
The study underlines Gen Z's growing influence on the retail market, with retailers needing to adapt to their nuanced expectations to maintain relevance and capture long-term spending potential.
Source: www.retailgazette.co.uk
