ration of true digital natives, seamlessly integrating online and offline experiences. A survey by software broker Capterra showed 78 per cent research products on platforms like TikTok before purchasing and 54 per cent have shopped directly through social media apps; however, the Love Song survey by Live Nation found that 83 per cent prioritise real-world experiences over digital ones. This duality indicates that while e-commerce will remain vital, physical retail experiences must evolve to be immersive and meaningful. But it’s a mistake to think of Gen Z only in front of a screen, as their commitment to sustainability is clear, with Australia Post reporting that 93 per cent prioritise ethical and sustainable practices when making purchases. A notable gap is apparent, though, between values and actions, as many still shop frequently on fast-fashion platforms like Shein. This paradox suggests opportunities for retailers to bridge the gap by making sustainable choices more accessible and appealing. Affordability also remains a critical factor. As noted by Monash University, 86 per cent of Gen Z reported financial difficulties in the last year; and Deloitte found that 56 per cent of Gen Z rank cost-of-living concerns as a top issue. Yet, their spending patterns highlight a willingness to pay for products and experiences they perceive as high value. Key predictions for 2029 Looking years ahead will always be a gamble, but there are strong indications of where Gen Z will be and what will press their buttons. 1. Social commerce will dominate By 2029, social commerce – driven by platforms like TikTok and Instagram – will account for a substantial share of Gen Z’s purchases. In a survey by IZEA, over 70 per cent of Gen Z said that they have already purchased products recommended by influencers, and this trend is set to grow. Retailers must integrate seamless social shopping experiences, leveraging authentic content from trusted creators. 2. Hybrid retail experiences will prevail Gen Z’s preference for blending digital convenience with in-store experiences will drive demand for hybrid retail models. Stores that combine e-commerce efficiency with physical engagement – such as AR-assisted shopping or experiential pop-ups – will thrive. 3. Hyper-personalisation will be a baseline expectation As 62 per cent of Gen Z prioritise standing out (the Love Song survey again), personalisation will become essential. Retailers will need to use AI and data analytics to tailor recommendations, promotions, and even product designs to individual preferences.  4. Ethical consumerism will be a differentiator Sustainability will move from being a nice-to-have to a must-have. By 2029, transparency in sourcing, production, and carbon footprint will probably become table stakes. Retailers who fail to authentically embrace these values risk losing market share. 5. The rise of localism While Gen Z embraces global culture, they are also keen supporters of local businesses. A survey from Eco Voice found that nearly 29 per cent already prefer purchasing from independent retailers. By emphasising local roots, Australian retailers can foster stronger emotional connections with this demographic. Recommendations for retailers The data tells a powerful story and one that retailers must accept and act on quickly or they’ll miss the opportunity of a century. While capturing this emerging market will never be easy, the following steps will increase your likelihood of success. 1. Embrace social commerce fully To succeed in the social commerce space, retailers should:  Collaborate with influencers and content creators who align with their brand values. Invest in shoppable content and seamless checkout features within social media platforms. Monitor emerging platforms to stay ahead of shifts in consumer behaviour. Rare Beauty, launched by Selena Gomez in 2020, swiftly built traction among Gen Z by blending influencer collaborations, authentic storytelling, and platform-specific content strategies. The brand’s emphasis on inclusivity and mental health aligns with Gen Z’s values, translating online engagement into direct sales through integrated shopping features on TikTok and Instagram. By balancing purpose-driven marketing with authentic content, Rare  Beauty highlights how social commerce can thrive in a Gen Z-focused marketplace. 2. Reinvent the in-store experience Physical stores must offer: Immersive experiences using AR/VR technology to blur the lines between online and offline shopping. Community-driven spaces where customers can connect over shared interests, such as workshops or live events. Fast and frictionless checkouts leveraging mobile payment systems and self-service options. PacSun, a US based youth-centric apparel brand, has successfully tapped into Gen Z by integrating influencer-driven online campaigns with immersive in-store experiences. The retailer’s digital-first approach includes robust social media and e-commerce platforms, while select physical locations feature pop-up collaborations and tech-enhanced displays. By harmonising convenient digital shopping with engaging, experiential storefronts, PacSun showcases how hybrid retail can win over Gen Z. 3. Double down on sustainability To appeal to Gen Z’s ethical inclinations: Provide transparency about sourcing and sustainability efforts through QR codes and blockchain technology. Explore circular economy initiatives, such as buy-back programs or rental services. Use minimal, eco-friendly packaging to enhance brand trust. In Australia and many other locations, IKEA has introduced a furniture buy-back and resale program, championing a circular economy approach that resonates with Gen Z’s ethical values. The brand is also known for its longstanding flat-pack packaging, which reduces waste, and provides increasing transparency about sourcing, including through QR codes and digital tools, to inform customers about its sustainability commitments. IKEA demonstrates that established brands don’t have to give up hope, by continuously adapting and expanding their eco-friendly initiatives, they can remain relevant and appealing to younger consumers. 4. Leverage data for personalisation Retailers should: Use AI to analyse shopping behaviours and predict customer preferences. Implement personalised marketing strategies, such as targeted email campaigns and dynamic pricing. Offer customisable products or services to align with individual tastes. 5. Address financial sensitivities To cater to cost-conscious Gen Z shoppers: Introduce tiered pricing models, offering budget-friendly and premium options. Highlight value propositions clearly, such as durability or multi-use benefits. Offer flexible payment options, including buy-now, pay-later services. 6. Prioritise authenticity and representation Retailers must: Avoid performative activism by embedding social responsibility into their core operations. Diversify their marketing and product offerings to reflect Gen Z’s inclusive mindset. Engage in meaningful dialogues with consumers to foster loyalty and trust. Challenging conventional wisdom While many perceive Gen Z as fickle, their behaviours reveal deep-rooted priorities – authenticity, sustainability and individuality. The assumption that their digital fluency means disconnection from the physical world is misguided; rather, they seek meaningful integration. Retailers that dismiss their economic potential risk missing out on a generation that values innovation, ethics and community. By 2029, Gen Z will significantly influence the Australian retail industry. Retailers who embrace their values, leverage technology, and offer authentic, immersive experiences will capture their loyalty. As the bridge between Millennials and future generations, Gen Z is not just a consumer group but a cultural force redefining how retail operates in Australia and beyond. Further reading: As China’s Gen Z saves, retailers struggle for sales