Gen Z Is Stepping Up
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Known for being highly thoughtful in their consumer behaviors, Gen Z shoppers have been loud about their needs across retail categories, from sustainable options and inclusivity to convenience and a frictionless journey. Highly researched and reported on by the retail industry over the past several years, the cohort has quickly matured. And as the generation steps into its potential spending power, what’s clear is that these shoppers are emphasizing footwear.
To understand the Gen Z consumer, Beth Goldstein, executive director and industry analyst of accessories and footwear at Circana, said that it is “important to note that this crosses two very distinct cohorts — teens, who are still kids and young adults, and those in their 20s, who are now into adulthood, with jobs and potentially even families of their own. The priorities and needs of these two groups, and the subgroups within, are going to be very different, so it’s important to take these nuances into account when targeting Gen Z.”
With so many Gen Z shoppers falling into the teenage bracket, Circana’s data shows that about 60 percent of the dollars spent on teens’ footwear is generated by parents or other adults, leaving 40 percent of footwear sales by the generation to the teens themselves — not insignificant. Goldstein explained that this varies by age. Younger teens are buying very little of their footwear, while older teens (18-19) are buying most of their own footwear.
What’s clear about Gen Z’s footwear preferences is that the cohort loves sneakers.
Gen Z spends more than a third of their footwear dollars on sport lifestyle sneakers, a bit higher than older generations combined and the number one overall category.
“I think the expectation is that sneakers are appropriate in almost all situations,” said Goldstein. “They grew up with sneakers as their dress shoes.”
Notably, within the sports lifestyle sneaker category is the growing interest in retro styles. Retro resonates across age groups, with older generations remembering these styles with nostalgia. But for younger consumers, like Gen Z, these styles are new, made extra compelling by heritage elements.
Key franchises of the moment are the Adidas Samba, Gazelle and Campus 00s, with the SL
74 and Spezial beginning to see a reemergence. New Balance’s 1906, 530, 9060 and 2002 also hold popularity alongside the Nike Vomero, Killshot, P-6000 and V2K Run, while Asics has its 1130 style, and Puma’s Palermo and Speedcat are also finding new attention. All have roots in performance from histories with soccer, skating, running or motorsports.
While direct-to-consumer has become the top channel to shop for footwear across all age groups, Gen Z spends slightly more here on their footwear than older consumers. Online sales account for about 70 percent of footwear sales in direct-to-consumer.
Goldstein explained that this has likely become the top channel for footwear “because this is where consumers are getting the best brand experience, and the growth of online has made brand-specific retail very accessible.”
At the same time, many young consumers are interacting with brands directly through their social media platforms to large influence, leading them to shop. Sharpening the direct purchase experience on social media is a key opportunity.
To win over the Gen Z footwear shopper, Goldstein urged brands and retailers to start with lifestyle targeting, “recognizing the fact that the cohort spans dierent life stages and targeting appropriately.” For example, she said, “focusing on value for the older Gen Z with a young family and focusing on what’s hot in terms of brand and style to grab teens’ attention. Messaging needs to be relatable and real — tapping into the priorities of each group.”
Online and in-person, stores play an important role, and Gen Z values the social aspect of shopping in-store, as well as touching and feeling products. Still, “convenience and sales/deals come into play as well, and online wins out here. So brands and retailers need to understand that it’s not one versus the other. It’s an integrated experience that will keep Gen Z engaged.”
And while social and environmental consciousness does not outweigh other factors, concepts of diversity, inclusivity, individuality and sustainability are important to these young consumers. These values resonate more with Gen Z than any other generation, “so brands and retailers should be incorporating these aspects in a way that is aligned with their brand — it has to be authentic.”
To better understand how footwear brands and retailers can meet Gen Z consumers where they are, FN and Circana partnered on an exclusive report that serves as a blueprint for the mindset of today’s Gen Z consumers. Here are the results.
Size of generation
In 2023, Gen Z counted for nearly 69.3 million people — about 20 percent of the U.S. population. The generation is noticeably more diverse than previous generations, with 52 percent identifying as non-Hispanic white, 25 percent as Hispanic, 14 percent as Black, 6 percent as Asian and 5 percent as other races. In 2021, Gen Z Planet estimated that Gen Z had $360 billion in buying and spending power. (Source: eMarketer)
Share of wallet
Buyers aged 18-24 allocate the largest portion of their total spend to apparel (23 percent of their wallet), followed by home (21 percent) and technology (15 percent). Footwear comes in at fourth place (8 percent), with categories like automotive gaining share of wallet with this maturing audience. (Source: Circana, Checkout, 12 ME Sept ’24)
Gen Z sales by channel
More than 20 percent of Gen Z’s (ages 16-27) footwear spend goes to direct- to-consumer retailers, like Nike, Adidas and Ugg. Multibrand off-price gained the most share of the Gen Z spend in the last 12 months, at 7 percent. (Source: Circana, Consumer Tracking Service, 12 ME Sept ’24)
Top footwear categories purchased by Gen Z
Sneakers are the big winners with Gen Z. Sport lifestyle sneakers account for 38 percent of total footwear spend for this generation. Meanwhile, running shoes stand out as the only top category to grow in dollars. (Source: Circana, Consumer Tracking Service, 12 ME Sept ’24)
Market breakdown
While the total footwear market has declined by 1 percent, Gen Z is a bright spot for the category. In fact, footwear bought for Gen Z teen (14-19) wearers was the only growth area across all ages/ generations in the last year. Just over a quarter of the total spend in footwear in the U.S. is generated for Gen Z (age 14-27) wearers, which is a 6 percent increase year-over-year, equating to $23.5 billon of the total $89.5 billion spent on footwear. (Source: Circana, Consumer Tracking Service, 12 ME Sept ’24)
Gen Z’s Top Footwear Brands (by dollar sales): Nike, Jordan, Adidas, UGG, Vans and Converse.
5 Gen Z buyer purchase mindsets (Ages 18-26)
Fashion Forward: When asked “why are you planning on buying footwear in the next six months?” Gen Z over-indexes in “want something new for the season” and “want a new style of footwear.” They also under-index in “to replace an old pair/update my selection” relative to other generations, though that remained the top response.
Budget Conscious: Gen Z is more likely than other generations to say they have either delayed or skipped a footwear purchase or chosen a less-expensive option during the past six months.
Value Convenience: When asked where they expect to make future footwear purchases, Gen Z under-indexed in in-store shopping. Similar to other age groups, Gen Z reports convenience as the top reason to buy online, but they are also more likely to appreciate the ease of finding sales or discounts online.
Socially and Eco-conscious: When asked what eco-friendly/sustainable footwear looks like, the top response is long-lasting, high-quality products, followed by products made with recycled materials. This echoes sentiments of other generations, but 33 percent of Gen Z cited pre-owned or refurbished products (higher than all other generations).
Influenced: Over 80 percent of Gen Z uses social media to learn about or discover footwear brands and retailers online, with the top platforms for driving purchases being YouTube, Instagram and TikTok. (Source: Circana, Future of Footwear Custom Survey, July 2024)
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