AI gives retailers an edge as Gen Z shopping habits reshape the market

itim Group

The 2025 holiday season highlighted a new phase in retail, driven by distinct behavioural shifts among Generation Z shoppers.

Gen Z shoppers approached the festive period with caution. Amid wider economic pressures, they were more budget-conscious than in previous years and more selective about how and where they spent. It underscored a sharp preference for relevance, speed and curation, traits that can be difficult to deliver consistently across large physical store networks without technological support.

One key shift was in how younger consumers discovered products. Trends now move rapidly from social media to point of sale, and Gen Z expects physical stores to reflect what they see online with minimal lag. The traditional product lifecycle has been compressed. AI-powered tools that track social sentiment, cross-reference inventory by location, and push real-time updates to store displays or digital signage are now critical.

itim Group plc (LON:ITIM) is a SaaS-based technology company that enables store-based retailers to optimise their businesses to improve financial performance and effectively compete with online competitors. Itim adds retail value by helping multi-channel retailers optimise their business and their stores to improve financial performance and compete more effectively with the “Amazons”.

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