Retail’s power dynamic is shifting fast — and younger consumers are in the driver’s seat. While older shoppers pull back, Gen Z and millennials are spending through economic uncertainty, fueling growth for brands that meet them where they are: online, value-driven, and community-focused.
Legacy brands are lagging, but emerging brands built on digital-first strategies and authentic engagement are capturing the momentum. The numbers tell the story: brands targeting younger consumers saw a 17% year-over-year sales increase, while those focused on older shoppers declined by 4%.
Calla Murphy, SVP of digital strategy and integrated marketing at Belardi Wong, stated that younger consumers are more resilient. During times of economic uncertainty, they continue to spend more than their older counterparts — even on high-ticket items.
Economic uncertainty affects older consumers more, she continued. They tend to pull back on spending when they perceive economic instability and are more likely to react to fluctuations in the stock market and financial indicators.
Brands targeting younger consumers need digital proficiency and adaptability to win them over. Successful marketers are often early adopters of digital strategies. They have already created shoppable websites with a strong emphasis on customer service.
