The next generation of retail shoppers is steadily building its spending power. And while younger consumers are expected to account for a growing share of retail dollars over the next several years, older generations aren’t hesitating to boost their spending, too. The challenge for retail property owners and developers? Finding a way to serve both groups.
That’s one of the key findings of Colliers’ Fall 2026 Retail Report, The Next Dollar: Generational Spending Shifts Reshaping Retail Real Estate. The report examines how spending patterns are expected to change through 2030 and what those shifts could mean for retailers, landlords and developers.
The biggest change will come from Generation Z. Spending by this cohort is projected to jump from $868 billion in 2025 to $1.61 trillion in 2030, an increase of about $743 billion. Gen Z’s share of total U.S. retail and foodservice spending will climb from 13.1% to 20.8% during that period.
Despite the growing importance of Gen Z shoppers, Millennials will remain the nation’s largest spending generation through 2030, according to Colliers’ report. Their retail and foodservice expenditures are forecast to increase 17.5%, reaching $2.38 trillion by 2030. That will give Millennials a 30.8% share of total spending, compared with 30.6% in 2025.
Smart retailers, of course, will continue to serve all ages of shoppers. In its report, Colliers said that retailers will need to continue to rely on the dollars of Millennials, Gen X and Baby Boomers even as younger shoppers gain influence.
The shift will require retail properties to accommodate different shopping priorities. Younger consumers are more interested in discovery, exclusive products, social engagement and experiences. Older shoppers place greater value on inventory availability, knowledgeable employees and familiar shopping routines, Colliers reported.
And in another key finding, Colliers reported that physical stores aren’t going away, despite the increase in online shopping. By 2030, every generation is expected to make the majority of its retail purchases in brick-and-mortar locations. Even among digitally connected consumers, physical stores will capture roughly two-thirds of retail spending, Colliers reported.
That doesn’t mean shoppers are visiting stores for the same reasons they once did, though. According to Colliers, 20.3% of Gen Alpha consumers and 19.4% of Gen Z shoppers said browsing was the primary reason for their most recent store visit. That compares with 13.3% of consumers overall.
Older shoppers, meanwhile, are more likely to arrive with a specific purchase in mind. About 30.5% of Gen X consumers and 27.6% of Baby Boomers said they visited a store because they needed something that day.
Those differences will influence how retailers operate and how owners design their properties. Stores need to accommodate quick shopping trips while also providing comfortable environments where consumers can browse, discover new products and spend time. Competitive prices and available merchandise remain essential. Colliers found that 54.4% of consumers choose physical stores because their prices match or beat online options, while 53.4% value products that are in stock and easy to find.
But younger shoppers also want something they can’t necessarily get from an online retailer. Nearly 47% of Gen Alpha respondents said an enjoyable shopping environment, including its atmosphere, cafes and events, influenced their decision to shop in person. Another 44.5% valued products they couldn’t find online, including exclusive merchandise and personalized offerings.
Foodservice and beauty are two categories positioned to benefit from these changing preferences. Colliers projects foodservice spending will increase 32.6% between 2025 and 2030, making it the fastest-growing broad retail category. Beauty and personal care spending is forecast to rise 19.5%, while apparel expenditures will increase 21%.
These categories also create opportunities for retailers to attract shoppers across multiple generations. Pairing beauty retailers with fitness concepts, wellness services and health-focused restaurants, for instance, can create destinations that encourage repeat visits.
Retail properties also have an opportunity to capitalize on Gen Z’s interest in health and wellness. Colliers found that 75% of Gen Z consumers value eating a healthy diet, although 43% say preparing and cooking meals is stressful. The report suggests that retail centers could turn those interests into recurring visits by combining fitness facilities with grocery stores, health-focused restaurants and other wellness-oriented businesses.
Social connection is another important consideration. Nearly 64% of Gen Z consumers value experiences that take place off-screen, while 61% place a high value on belonging to a particular place or group. Gen Z consumers are also 23% more likely than the average shopper to visit a mall.
Retail landlords can respond by making common areas and other spaces available for running clubs, bookstore gatherings, collectible exchanges, cooking workshops and other community events.
Meanwhile, Gen Alpha is already influencing household spending, even though most members of this generation are still too young to control significant amounts of money independently. Colliers reports that nine in 10 Gen Alpha consumers influence family purchasing decisions, and 70% of adults act on their recommendations. The generation’s spending is projected to increase from $6.1 billion in 2025 to $59.4 billion in 2030.
For landlords, that makes family-oriented retail environments increasingly important. Properties that combine food, entertainment, events and flexible gathering spaces can attract younger shoppers while also appealing to the parents and caregivers who control household spending.
