Gen Z vs. Millennial Shopping Behaviour: A Playbook for SMBs

If your customers were born with a smartphone in hand, you’re speaking to Gen Z. If they grew up with landlines but now shop almost entirely on their phones, hello Millennials!

Millennials and Gen Z might shop at the same stores, but they play by very different rules. One is bargain-savvy and loyal to email deals, the other scrolls, taps, and buys on the go without ever reaching for a wallet. Both are big spenders and big influencers in their own unique ways. Here’s a guide to help small and medium-sized businesses (SMBs) win over both generations.

Who are we talking about

Millennials (born 1981–1996) came of age as the internet and smartphones were emerging. They’re comfortable shopping both online and in-store, and they value convenience, loyalty programs, and a good deal.

Gen Z (born 1997–2012) are true digital natives. Smartphones, apps, and social media have always been part of their lives, making them fast, mobile-first shoppers who discover products through video and social channels.

Payment preferences

Gen Z leads Canada in mobile wallet adoption. Seven in ten Gen Z Canadian adults (69 per cent) use a mobile wallet, ahead of millennials at 60 per cent.

Mobile tap payments are booming, Interac reported a 27 per cent increase in debit contactless payments in the first half of 2024, driven largely by Gen Z’s digital-first habits.

In fact, contactless payments are quickly becoming the Canadian default: credit tap transaction volumes grew 20 per cent year-over-year, while debit contactless grew 13 per cent.

Tip for SMBs: Today’s shoppers expect more than card tap—they’re just as likely to pay with a phone or smartwatch. Make sure your terminal accepts all forms of tap, with the surface easy to reach for wearables while still keeping the device secure at the counter.

Digital habits and discovery

When it comes to discovery, Gen Z and Millennials both use social media, but in different ways. In Canada, Gen Z’s most-used platforms are Instagram (75 per cent) and YouTube (71 per cent). Millennials use an average of 3.4 platforms weekly while Gen Z uses 3.9. 

Gen Z prefers online shopping, often through social media platforms like TikTok and Instagram. Gen Z is highly influenced by social media trends and peer recommendations. They spend an average of three hours a day on social media, significantly more than Millennials, and often make purchasing decisions based on influencer endorsements and viral content. They value speed and convenience, with many making purchases directly through these platforms.

Millennials also use social media for product discovery but are less likely to make impulse purchases based on social media content. They tend to research products online before making purchases. To them, social may spark interest, but detailed information often seals the deal.

Note: A social channel’s ability to influence a decision can dip during high-stakes seasons. A Canada-wide retail survey found Gen Z relied less on social media for holiday decisions in 2024, with TikTok influence down 20 percentage points year-over-year.

Tip for SMBs: Prioritize short vertical videos on Instagram and YouTube for Gen Z. Keep Meta and YouTube ads humming for Millennials. During peak seasons, support social messaging with email, search, and on-site content, but don’t rely on social alone.

Omnichannel shopping behaviour

Both groups say they’ll keep shopping online and in-store. Canadians report stable or rising intent for both channels. Layer your omnichannel accordingly. 

Mobile-first behaviour is strongest with Gen Z, but Millennials aren’t far behind. Ensure your site is fast, mobile-optimized, and checkout is frictionless. 

Tip for SMBs: Show total cost early (taxes, shipping). Offer express checkout, local pickup, and clear delivery dates. Build carts that save across devices so Millennials can research on desktop and buy on mobile later (and Gen Z can tap to pay immediately).

Shopping values

Second-hand shopping is now becoming mainstream and led by the young. Seventy-seven per cent of Canadians bought something pre-owned in the past year, with Gen Z and Millennials leading adoption.

Gen Z places strong emphasis on sustainability and values-driven brands. They’re quick to support companies that demonstrate social responsibility and just as quick to avoid those that don’t.

Millennials also value sustainability but are more focused on product quality and customer service. They tend to be more brand-loyal, especially if they have positive past experiences.

Young shoppers are price-savvy in different ways. A 2024 Canadian snapshot noted Millennials were highly focused on buying on sale (52 per cent) and comparing prices (54 per cent), while Gen Z leaned into discount/outlet channels. 

Tip for SMBs: Promote “like-new” or certified refurbished lines, trade-in credits, and repair services. Run transparent price-comparison guarantees for Millennials; highlight limited-time drops and bundle value for Gen Z.

Shipping and returns 

Delivery clarity makes or breaks the sale, across generations. Half of Gen Z Canadians said they would abandon their cart if delivery times were unclear or too long. 

Fees change return behaviour. Nearly 70 per cent of Canadian shoppers say return fees affect whether they’ll send or bring items back online or in-store. 

Tip for SMBs: Post clear delivery windows, real-time tracking, and local pickup ETAs. Offer at least one free return option (in-store or drop-off) and make return labels mobile-friendly.

Loyalty and retention

Gen Z expects quick social replies and SMS order updates. However, Millennials still engage heavily with email and search, while using several social platforms weekly.

Canada’s central bank reports that mobile payments and digital wallets are becoming more popular, especially among younger Canadians, who trust these methods for their security.

Tip for SMBs: Send order/SMS updates by default. Layer perks: instant discounts and early access for Gen Z; points, tiers, and member-only events for Millennials. Display security badges and recognized Canadian carriers at checkout.

Action plan for SMBs