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A pair of polished brown leather dress shoes sits on a wooden table beside neatly folded patterned shirts, conveying style and elegance in a retail setting.

Gen Z Holiday Shopping: Experiences Over Discounts

Discover why Gen Z holiday shopping in 2025 is driven by festive experiences and atmosphere, not just discounts — and what this means for retailers.

As retailers close out the 2025 holiday season, Generation Z’s shopping behavior reveals a notable shift: younger consumers aren’t just hunting deals — they’re seeking memorable holiday experiences that blend atmosphere, social engagement, and intentional purchasing.

According to recent research from Lightspeed Commerce, nearly 8 in 10 Gen Z shoppers (ages 18–24) say that the “holiday experience” — including festive décor, music, scents, and events — plays a key role in bringing them into stores and malls during the season.

Moreover, 67% of these shoppers stay longer when retailers create a compelling holiday vibe, and more than half are more likely to make a purchase when small seasonal touches like hot drinks or gift-wrapping stations are present.

This behavior aligns with broader data showing Gen Z’s interest in experiential retail.

PwC’s 2025 Holiday Outlook found that younger shoppers increasingly prefer in-store discovery and the sensory aspects of shopping — from seeing products firsthand to soaking up holiday energy — even as they balance value and budget considerations.

At the same time, Gen Z’s practical mindset impacts how they shop. Afterpay and other Buy Now, Pay Later (BNPL) preferences are on the rise among young buyers, with many rejecting traditional credit cards in favor of flexible payments that support both experience‑based and social commerce purchases.

For retailers, this means holiday strategies that go beyond discounts and markdowns.

Creating engaging environments, leveraging social media moments, and integrating seamless omnichannel experiences can help brands connect with Gen Z’s desire for meaningful, memorable shopping moments — turning casual visitors into loyal customers in a competitive 2025 holiday season.


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