Scrimp, Splurge, Save: Gen Z's Selective Shopping Habits Are Shaking Up Retail

Core Insights - Gen Z's shopping habits are unpredictable, characterized by a pursuit of affordable affluence, leading to a decline in visits to fast casual restaurants while showing increased interest in designer brands [1] Group 1: Retail Trends - Fast casual restaurants have experienced a decline in visits from Gen Z, while designer brands are seeing an uptick in interest [1] - Cava Group and Chipotle have both noted a decrease in visits from the 25 to 35 age group, indicating a broader trend across the restaurant industry [2][3] - Factors contributing to this trend include increased unemployment, high student loan repayments, and slow real-wage growth [3] Group 2: Company Performance - Tapestry, the parent company of Coach and Kate Spade, raised its fiscal 2026 outlook after exceeding Q1 earnings expectations and achieving 12% sales growth in North America [4] - Tapestry's growth is largely attributed to attracting new Gen Z customers, who are highly engaged in fashion and spending more of their budget on it [5] Group 3: Consumer Behavior - Approximately 80% of Gen Z consumers wait for items to go on sale before making a purchase, with only about 20% willing to pay full price [6] - Despite the trend of saving, Tapestry has reported a high retention rate among Gen Z customers, challenging the notion that this demographic lacks loyalty [5]