Generational Spending Power Is Shifting And Retail Needs Real-World Experience to Keep Up

The generational dynamics of retail spending are evolving fast. Older generations still command large spending power, but younger cohorts are rising and that shift has major implications for how retailers should invest in marketing and physical experiences.

Generational Spending Snapshot

According to a recent global breakdown of spending power, older cohorts remain influential. Providence Wealth Advisors estimates that Baby Boomers still control 20.8 % of global consumer spending while representing only 12.1 % of the population.

Meanwhile, Millennials hold 22.5 % of spending power.

But the fastest mover right now is Generation Z. Although they currently account for 17.1 % of global spending - smaller than Boomers or Millennials - projections suggest their spending power will grow rapidly in the next decade.

U.S. data from 2025 show that Millennials and adult Gen Z combined now represent 32 % of consumer spending in the United States, an 8-point increase since 2020.

At the same time the share of spend from older generations (including Boomers and beyond) has dropped by nearly ten points over that period.

These numbers suggest a clear generational shift in purchasing power, though the patterns of spend vary by cohort and category.

What the Shift Means for Marketing and Retail Strategy

For Boomers

Boomers continue to control significant spending, especially in categories like consumer packaged goods, home merchandise, health and wellness.

For marketers, this means that short-term campaigns focused on value, reliability and clarity remain effective with this group. They respond well to traditional retail formats, clear information and comfort-driven messaging.

For Millennials

Millennials tend to balance family, home ownership or lifestyle investments. Their spending remains substantial and stable.

For them, experiential retail or hybrid online-offline models tend to perform well. They appreciate convenience but also meaningful, well-designed experiences. Retail media that blends digital convenience with real-world context can appeal strongly.

For Gen Z

Gen Z is rising fast in influence. Their share of consumer spending is growing, especially in digital-native categories and consumer packaged goods.

They are more likely to respond positively to immersive, social, and sensory experiences. This makes them ideal for experiential advertising, dynamic retail media, and interactive formats. Retailers who invest proactively in engaging physical experiences now have a high potential for long-term loyalty as Gen Z’s financial power continues to grow.

The Case for Experiential Retail and Holographic Media

As generational spending shifts, so do consumer expectations. Younger consumers increasingly expect interactivity, personalization, novelty, and social proof. Older consumers still value clarity, trust, and convenience. A medium can serve both generations effectively if it is designed thoughtfully.

That is where experiential retail, immersive media, and technologies such as holograms come into play. A well-designed holographic retail display or immersive in-store activation can provide clarity and trust for older buyers while delivering novelty and engagement for younger ones. Spatial media can meet Millennials’ desire for real-world convenience that merges seamlessly with online sensibilities. For Gen Z, it offers shareable, sensory, and socially enhanced experiences aligned with their digital-first identity.

Short-term campaigns leveraging traditional messaging and value propositions may convert existing high-spending cohorts. Long-term strategy that invests in immersive, experiential retail media will help attract emerging cohorts and build future loyalty.

Gen Z are he rising stars of retail spending

The global consumer economy is shifting. While Baby Boomers and Millennials remain powerful drivers of retail spend, Generation Z is rising rapidly and shaping the future landscape. Retailers and brands must adapt by blending reliability and familiarity with imagination and immersive experience. Experiential retail, spatial media, holograms, and thoughtfully designed in-store activations are not just novelties - they are essential tools to engage diverse generations, capture shifting spending power, and build long-term brand loyalty.