Slow to Spend: Why Gen Z Shops More Than They Buy

BY Willow Pawlisch | July 10, 2025

Gen Z might have a reputation for being impulse buyers, but they’re actually meticulous researchers. They’ll scroll for hours, not to buy, but to compare prices, read reviews, and hunt for the best value before ever hitting “add to cart.” They’re experts at finding one perfect product at a low price, much to the frustration of retailers who try to box them into impulse-buy trends that appeal more to older generations.

Financially, that’s a good choice for them to save money as they grow into a cost-of-living crisis and increasing student loan debt, but it’s also a hurdle for retailers struggling to convert young people from shoppers into buyers.

Gen Z’s purchasing power is set to reach $12 trillion by 2030, but their spending power isn’t translating into more sales in general. As younger people grow into the major consumer market, Gen Z saves and budgets more than previous generations. A study conducted found that Gen Z on average put away into savings higher percentages of their monthly wages than any other age group. They also had the highest percentage of participants who put away all of their disposable income into their savings accounts. 

This new mentality around spending was also reflected in a TikTok trend last year, where Gen Z creators talked with friends about choosing not to spend money. The trend was a rejection of consumer culture by proudly declaring,“I don’t want to spend.” These behaviors point to a larger moment of Gen Z choosing to save money more often than they spend. 

Secondhand Is Everyone’s Competition

In 2022, 1.4 billion secondhand apparel items were purchased in the U.S., according to statistics compiled by Capital One. That’s up 40% from 2021, and the secondhand market is expected to hit a value of $64 billion in 2026. Sustainability is top of mind for many young people, and combining the affordability of secondhand shopping with eco-focused messaging resonates strongly with Gen Z consumers.

ThredUp educates its consumers on the global fashion waste crisis (photo via ThredUp)

According to online clothing re-sale company ThredUp, Gen Z accounts for almost two-thirds of their consumer base, and their latest sales report says Gen Z plans to spend 42% of their clothing budget on second-hand items. 

One of the major appeals of thrift and consignment shopping is affordability. If second-hand is cheaper, the buyer has the chance to be budget-conscious, but the retailers face the cost of no longer making that sale.  

This tradeoff between price and profit becomes even more complex when considering how meticulously younger shoppers evaluate their purchases. A study found that 75% of Gen Z generally reads comments, 74% visit the brand’s website, and 72% check product reviews before making a purchase. This suggests that Gen Z spends significantly more time evaluating their options than previous generations could. Younger generations use their access to unlimited data to parse the market for their desired product. 

Brands may prioritize instant, impulse-driven purchases through social media storefronts, but Gen Z primarily uses these platforms to research products, not to buy them.

In-Person vs. Online Buying

Even though they are the first generation to grow up with technology, trends show that teens and young adults prefer to shop in person at the same rates as Baby Boomers. This suggests that despite their digital fluency, the tactile experience of shopping remains important to them.

Making everything available for purchase online performs well overall, but it doesn’t generate sales like a physical storefront opening does. Conversely, opening a physical storefront can boost online sales.

Members of Gen Z prefer to spend their money in person rather than through social media storefronts or online retailers that can be used to research the purchase. They plan visits to physical stores to purchase their desired products.

A Changing Sales Funnel

Gen Z’s lengthy shopping process has led many marketing analysts to conclude that this generation has disrupted the traditional marketing funnel. Their habits have effectively added a new step: extensive research drawn from sources beyond company advertising. The traditional sales funnel follows the following steps:

  1. Awareness
  2.  Interest
  3. Desire
  4. Action

Each company tends to tailor this funnel differently to appeal to its target audience, but creating a Gen Z sales funnel looks a lot different than the linear path. Between social media, physical media, and everyday life, brands can create a web of touchpoints to explore instead of creating advertisements and information touch points that only exist in a serial, one-note campaign style.

Learning how to navigate the new sales funnel can also provide more opportunities to grow a brand’s credibility with Gen Z. Moving beyond the goal of just a sale, building a reputation in the research phase can encourage engaging with the consumer post-purchase. This can help consumers recommend your product to others and build a community of Gen Z customers that keeps coming back. 

By understanding the processes Gen Z takes in shopping, researching, and ultimately buying products, brands can better cater to the growing buying power that the younger generation seems to be keeping on a tight leash in the current economy. 

Willow Pawlisch is From Day One’s summer fellowship reporter. She's a student at the University of Wisconsin-Eau Claire, double majoring in Journalism and Latin American Studies/Language. 

(Featured photo by RyanJLane/iStock)