he “most broke generation ever.” By 2030, Gen Z is expected to spend more capita than any other generation at the same age, with $12 trillion of spending power. While some brands, like Mac Cosmetics and Blank Street Coffee, seem to have cracked the code on how to appeal to Gen Z, other brands like Vans are struggling to attract these younger shoppers.  Architecture and strategic-planning firm MG2 recently released a report detailing some intriguing insights about Gen Z and emphasized the importance of moving past preconceived notions to truly understand what really drives them. Don’t lump all Gen Zers into one group One notable takeaway from MG2’s report is the importance of differentiating the two subgroups within Gen Z’s generational cohort. The firm cautioned that while this group is often treated as a single cohort, “Gen Z actually contains two distinct intergenerational groups, each with its own priorities, behaviors and expectations.” The reality is that the younger half of Gen Z is just entering adulthood, while the older division is shaping their careers, household and long-term habits. Their views on value systems, societal impact, education and identity are nuanced, and so are their relationships with brands and retailers.  “Making assumptions about this generation, or relying on outdated labels, can lead to missed opportunities, limiting both loyalty and revenue growth,” the report warned.  For example, one common assumption made about Gen Z shoppers is that they are solely focused on digital shopping channels and are socially reclusive, largely due to forced isolation during the pandemic.  However, MG2’s research shows that Gen Zers are more interested than ever in a well-balanced approach to omnichannel, with a renewed focus on in-store shopping experiences that tap into culturally relevant moments.  Co-creation is key for connecting with Gen Z in-store While Gen Z is a digitally native generation, MG2 observed that this group has increasingly chosen to shop in-store to gain value in both tactile and emotional ways over the past two years. Since 2023, MG2 has reported that the importance of experiencing a brand’s personality and community in-store has risen nearly 25 per cent for Gen Z.  The report noted that “this desire for belonging is shaped not only by peer influence but also by how store staff create an environment of authenticity and inclusion.” Data collected by MG2 revealed that Gen Zers have a stronger sense of brand loyalty when an emotional connection is present and that shopping incentives alone are no longer sufficient.  One way that brands can build a deeper emotional connection with their Gen Z audience in-store is through co-creation. MG2 reported that nearly three in four Gen Zers express a strong interest in co-creating with brands, making this one of the most promising avenues for connection.  “Gen Z is looking for more than just a front-row seat; they want to be part of what is happening behind the scenes, from co-creating to collaborating with the brands and retailers they genuinely support and believe in,” the report stated. “Tapping into this desire to be involved presents a unique opportunity to build lasting loyalty and deeper engagement.” MG2’s report revealed: 60 per cent of respondents surveyed noted that they want to offer feedback on store atmosphere, layout or design. Two in five Gen Z shoppers want to help customize products or packaging in-store Over one-third of consumers stated that they wanted the chance to vote on upcoming product launches or limited drops. Thanks to this generation’s unique mix of digital fluency, which ranges from live-streaming to virtual world-building, Gen Z wants to be more than just consumers. “For the brands they love, they are ready to act as creative partners and collaborators, helping shape brand stories, design elements, and product offerings that they want to test, see and experience,” the report stated.  Surprise, surprise: Tech is highly important to Gen Z consumers While in-store experiences are more important to Gen Z than ever, this doesn’t mean that retailers can slack off with technological innovations, the MG2 report cautioned.  “From AR and VR to gamification, personalization, AI and 3D printing, they’ve grown up exposed to it all, pushing brands and retailers to deliver on experience while keeping it frictionless and efficient.”  One brand that has been a standout example of integrating technology with co-creation opportunities is the South Korean eyewear brand Gentle Monster.  MG2 explained that the brand has not only thoroughly captured Gen Z’s attention through celebrity collaborations with cultural icons like Blackpink’s Jennie, but also through customization opportunities like detachable charm options and immersive tech like  AR-supported try-ons that let customers virtually wear the eyewear before purchasing. Notably, MG2 observed that there has been a meaningful shift in preference year-over-year. In 2024, two in five respondents favored AR/VR and experiential formats. In 2025, the same proportion prefers product storytelling and demonstration tech. While this does not discount immersive experiences, MG2 noted that it reflects Gen Z’s growing demand for meaningful, value-driven innovation.  “For brands and retailers, this means rethinking tech integrations; flash alone will not cut it, substance must lead.” Survey respondents confirmed that the kinds of tech that make a store experience feel more engaging, rather than just flashy, are: Product storytelling or demos embedded in the space, such as scan for behind-the-scenes or “how it’s made” moments (40 per cent) TikTok-style short-form content, like styling ideas, creator reviews or how-tos in-store (38 per cent) Augmented reality mirrors or overlays that test styles, colors or pairings digitally (32 per cent) Virtual try-on using face/body scan tools (29 per cent) Gamified moments that unlock something (22 per cent) MG2 also reported that only 8 per cent of respondents viewed in-store tech as gimmicky, signaling that the majority across both younger and older cohorts see real potential as long as the technology delivers consistent value. Five key brand strategies moving forward To earn the attention, respect and long-term loyalty of Gen Z, MG2 highlighted five critical strategies retailers and brands should consider taking into account: Embrace Gen Z as partners, not just customers  MG2 advised retailers to invite Gen Z shoppers into co-creation opportunities. This ranges from product customization offerings to store design, to ensure that these shoppers’ voices are part of the brand’s evolution and will foster genuine loyalty. Create community-driven environments  Brands should develop lounges and hubs where Gen Zers can connect, collaborate and feel a sense of belonging beyond the transaction, thereby making the store a social destination, otherwise known as a “third space”.  Leverage “nowstalgia” to capture attention  Brands need to use visual storytelling and immersive displays that tap into Gen Z’s love for authenticity and nostalgia, which will in turn make the shopping experience memorable and meaningful. Design stores that reflect core values  Use sustainable materials and ethical sourcing to show commitment to causes Gen Z cares about, turning physical spaces into a tangible expression of brand purpose. Integrate technology that educates and enhances  Retailers need to focus on tech solutions that bring brand heritage and product stories to life instead of noise, as this will provide clear value and a deeper connection through in-store programming and incentives. As Melissa Gonzalez, principal of MG2, explained, “When brands position themselves as partners in these priorities rather than just sellers of products, they build relevance and trust that goes far beyond the checkout.”