Written by , Integrated Solutions Lead: Retail & Commerce, 兔子先生 UK
Generation Z (Gen Z) is often referred to as the ‘digital native’ generation. Born between the mid-1990s and mid-2010s, this cohort’s fluency in technology and desire for authentic connections is reshaping the UK retail landscape.
To thrive in today’s ever-evolving market, brands must master – the convergence of online and offline shopping experiences. Expected to grow by 21.9% in 2025, retail media is the fastest growing digital channel (). Whether through TikTok ads or in-store activations, tapping into what makes Gen Z tick is essential. Let’s explore how brands can leverage retail media to connect with this influential audience and redefine the future of retail.
A digital-first mindset
Convenience and flexibility reign supreme for Gen Z. As digital natives, they expect seamless, omnichannel shopping experiences. Brands must embrace sophisticated technology infrastructures capable of tracking, monitoring, and predicting consumer behaviours. This tech-first approach allows brands to create meaningful, personalised shopping journeys—online, offline, or somewhere in between.
Research from 兔子先生’s report highlights the importance of integrating technology into marketing strategies. This isn’t just about meeting Gen Z where they are: it’s about anticipating their next move and being ready to meet their needs before they even know they have them.
Taking a multichannel approach
Gen Z doesn’t stick to one platform when shopping. They’ll seamlessly hop between platforms such as TikTok, Instagram and Amazon before making a purchase decision. This behaviour underscores the importance of brands devising a multichannel strategy.
Brands must distribute their advertising spend across diverse channels, ensuring their presence wherever Gen Z is browsing. Omnichannel strategies—from in-app promotions to influencer-led campaigns—enhance brand visibility, boost engagement, and drive conversions. Dentsu’s most recent has also highlighted that out-of-home is predicted to remain the most resilient traditional medium (3.9%+ in 2025), thanks to continued traditional spend and the expansion of digital formats. The goal isn’t just to be seen, but to create a cohesive and compelling experience that draws Gen Z into the purchase funnel, no matter where they are.
Gen Z also expects brands to know them. Personalisation is no longer a luxury; it’s a baseline requirement. Retail media platforms must harness data to deliver tailored experiences, from recommending products based on browsing history to curating email campaigns that feel genuinely relevant. Customisable products are another avenue for personalisation and can be implemented into brands' retail media strategies. Allowing consumers to design their own trainers or individually tailor packaging adds an extra layer of connection and creates an interactive experience that enhances engagement. These small touches make a significant impact, turning one-time shoppers into repeat customers.
The role of entertainment in the algorithmic era
8 in 10 Gen Z and Millennial consumers prefer content that reflects their values and communities (); so how can brands tap into this through the medium of retail media?
Entertainment is one of Gen Z's core values when it comes to the content they engage with. Brands have a unique opportunity to connect with this audience by crafting campaigns that seamlessly blend entertainment with values and purpose, through retail media.
Interactive digital experiences – such as polls, quizzes and gamified shopping journeys – are tools to turn passive consumers into active ones through immersive and interactive activities, creating a deeper sense of engagement and connection.
Interlinking digital and physical experiences through social platforms like TikTok and Instagram is a powerful way that brands can create engaging, value-driven experiences. Successful campaigns are often those that combine entertainment, creativity and a clear sense of purpose; for example, a TikTok challenge spotlighting a sustainability initiative can seamlessly blend entertainment with commerce, driving both engagement and conversions. By integrating product links, exclusive offers or limited-time promotions into the content, brands can simultaneously engage and educate Gen Z, build trust and drive sales all whilst reinforcing their commitment to social causes.
Driven largely by the Algorithmic Era (), we are now in a transformative phase in advertising where algorithms are taking the lead in curating content, personalising experiences and leveraging data to optimise media investments in real time. This shift is empowering brands to deliver highly targeted, relevant retail media campaigns that align with individual consumer preferences and help to maximise efficiencies. Consequently, algorithmically enabled ad spend is estimated to reach 59.5% of total ad spend in 2024 and 79.0% in 2027. Data-enabled advertising will increasingly shape media strategies and as digital spend continues to outpace other channels, brands must take advantage of the depth and pace of the connection it has with customers.
The future of retail: a new dawn for retail media
Connecting with Gen Z isn’t just about today’s sales; it’s about fostering long-term loyalty. This requires brands to evolve alongside their audience, anticipating shifts in priorities and adapting accordingly.
The future of retail lies in delivering emotional connections, personalised experiences, and campaigns that stand out for their honesty, creativity, and value-driven approach. Gen Z wants to engage with brands that align with their values, entertain them, and make them feel seen. Retailers who rise to this challenge will not only win over this influential generation but also set the standard for the future of retail media.
Gen Z isn’t just another consumer segment; they’re the architects of tomorrow’s retail landscape. By understanding their preferences and investing in strategies that resonate with them, brands can create meaningful, long-lasting connections. The question isn’t whether to adapt to Gen Z’s expectations—it’s how quickly you can do it.
If you want to learn more about the future of retail, check out this blog.