Gen Zs are shaping the future of retail

Zawya

20 hours ago

Youth Day invites us to pause and consider the role young people are already playing in shaping South Africa's economy – including the evolving retail landscape.
South Africa's Gen Z – those aged roughly 15 to 27 – are a generation shaped by disruption. Born into democracy but coming of age in economic uncertainty, digital acceleration and social reinvention, they are navigating adulthood on their own terms.
Slowly but surely, they're leaving their mark on retail, too.
While fewer than half of Gen Zs currently identify as a 'household' grocery shopper, their influence is already being felt – from what is being bought to where and how it's being bought. Their behaviour offers a glimpse into the retail landscape of tomorrow, shaped by digital influence, values-driven choices and evolving expectations.
Under-resourced but upwardly mobile
Gen Z is the least urbanised and most under-resourced generation in the shopper landscape today. Many are young singles or single parents, and over half live in households earning under R5,000 a month.
While this limits their purchasing power, it doesn't limit their aspirations or their resourcefulness.
Despite being less likely than older generations to receive social grants, a third of Gen Z still do. They are navigating tough conditions with ambition, agility, and a mobile phone in hand.
Gen Z isn't a monolith. Higher-income Gen Zs are more educated, more urban, more digitally immersed, and more brand-aware – shopping online, engaging with social media influencers, and prioritising values like quality and sustainability.
Lower-income Gen Zs, meanwhile, are just as aspirational but face more structural barriers to choice and access.
Retailers and brands need to plan for both ends of this spectrum – thanks to their education and comfort with technology, Gen Z represents significant purchasing potential.
From TikTok to till points: The digital path to purchase
This is a generation raised online. Nearly three-quarters engage with the internet daily – far more than older generations – and their path to purchase reflects this.
They're not relying on radio or newspaper specials. Instead, they're scrolling retailer pages, checking websites and price-comparison tools, and tuning into creators on TikTok for grocery tips and product hauls. They're also more likely to trust retailers – a silver lining for brands that get it right.
While most of their grocery shopping still happens in-store, online retail is part of the picture, particularly for higher-income Gen Zs. Digital engagement increases with household income, and so does online shopping: 19% of Gen Zs in the highest income bracket reported shopping online in the past month, compared to just 5% in the lowest bracket.
Not just bargain hunters
While price matters, Gen Z is willing to pay more for the things they value. Compared to the average South African shopper, Gen Z is more likely to pay a premium for freshness, quality, health, sustainability, and even a brand they love.
That said, loyalty cards don't win them over as easily. They're the generation least likely to engage with rewards programmes – but the most likely to prioritise great service. For Gen Z, value goes beyond rands and cents.
Youth Day reflection
As we reflect on the legacy of 16 June, it's clear that today's youth are still finding new ways to shape their futures – and the nation's – through the roles they play in households, communities and the economy.
Gen Z may be the youngest generation in the grocery aisle, but they are shaping the retail landscape of tomorrow.
For businesses across the FMCG sector, understanding how and where they shop and why is essential to relevant channel strategies, customer plans and shopper engagement that keep pace with change.