What: Gen Z's USD 13 trillion spending power by 2030 demands urgent retail strategy transformation.

Why it is important: Retailers must shift from criticism to strategic adaptation to capture Gen Z's growing economic influence and distinctive consumer behaviour.

The retail industry's approach to Gen Z requires a fundamental shift from criticism to strategic adaptation, argues Retail Week's editor-in-chief Charlotte Hardie. Despite widespread media negativity towards this generation, their projected spending power of USD 13 trillion by 2030 demands serious attention from businesses. Snap UK's managing director Bridget Lea, whose platform reaches 90% of 13-to-24-year-olds in the UK, emphasises the critical importance of understanding Gen Z beyond superficial headlines. The article challenges businesses to embrace rather than resist Gen Z's characteristics, from their demand for workplace flexibility to their appetite for technology and social commerce. Retailers must integrate Gen Z behavioural insights into their long-term planning across all business aspects, including store operations, ecommerce, sustainability, and marketing. Instead of dismissing traits like influencer engagement and user-generated content preferences, businesses should recognise these as opportunities for innovation and growth. The message is clear: retailers must accelerate their evolution to remain relevant and competitive in the Gen Z-influenced market.

The Gen Z effect: how young consumers are rewriting business rules