Gen Z Wants a Bargain and Retailers Are Racing to Keep Up

Gas prices are up, supply chains are strained, and Gen Z is getting squeezed from every direction. Already the least financially established generation, younger shoppers are forced toward discounters. This brand familiarity could define retail’s next decade, as the emerging cohorts are projected to drive the majority of sales growth within the next five years.
- WalmartWMT, RossROST, and TJXTJX flagged Gen Z’s emergence in recent earnings — with Ross boasting to outperform nearly every competitor among shoppers aged 18–24.
- At Sam’s Club, younger members shaped more than their shopping carts — influencing product formulations and even the design of private-label clothing sold in stores.
Playing catch-up: Bath & Body WorksBBWI is a case study in what happens when a brand misses the shift. Q1 net sales fell 3% to $1.38B, with full-year guidance pointing to another decline. In response, the retailer is closing mall locations, launching on AmazonAMZN, and pushing into college campus bookstores to reach younger shoppers. For a brand that built its empire on the mall experience, winning over a generation that grew up online may be the hardest fragrance to bottle yet.