April 20, 2026 • 5 minute read

Author: Jessica Denbo Smith, Director, US Marketing, UPS

Key Points

• While more than a third of U.S. retail transactions happen online, e-commerce accounts for just 16.2% of total retail sales by dollar value.²
• Convenience and technology continue to shape Gen Z (born 1997-2012) and Millennial (born 1981-1996) shopping habits.
• Baby boomers (born 1946-1964) and Gen X (1965-1980) drive the majority of U.S. retail spending, accounting for nearly two-thirds of total sales.⁶

Meeting Consumer Expectations with Omnichannel Retail Strategies

Winning in today’s retail environment requires investment in new technology, a willingness to experiment and a clear understanding of how customer behavior is changing.¹ Retailers that stay curious and adaptable are better positioned to act on what they learn.

As technology and AI-powered tools make it easier for shoppers to research products, compare prices, and get customer support, expectations for convenience, personalization and returns continue to rise across channels.

Retailers that adapt quickly to these shifts gain a competitive edge. As UPS Retail Strategic Lead Jarret Arnold says, “Staying relevant helps you capitalize on the moment and capture the sale.”

Building authentic customer connections means delivering convenience, consistency and trust across demographics. And how retailers make and keep those connections can vary by generation, channel and moment.

New findings from the “UPS Retail Consumer Study” published in the report, “The Consumer Trends Shaping Retail Strategies in 2026,” provide practical insight into how retailers can strengthen customer connections with customers of all ages.

The Forces Driving the Future of Retail

Three powerful shifts are reshaping the retail landscape: the blend of physical and digital shopping, a focus on value and Gen Z’s spending power.

“Phygital” Experiences

Shoppers expect digital and in-store experiences to blend seamlessly. Although just over a third of retail transactions in the U.S. occur online, e-commerce makes up only 16.2% of total retail sales by dollar value.² While many shoppers click to buy, in-store purchases still dominate overall spending.

“Many shoppers are looking for a showroom environment when shopping in person,” says Jarret Arnold, Retail Strategic Lead, UPS. “Depending on the demographic, many expect to speak to a product expert (especially when it comes to technology), and handle and try on different items, but not necessarily purchase them in-store. Webrooms, where shoppers research online and then purchase items in-store, underscore the importance of having a consistent brand experience across channels.”

Younger Generations Focus on Value

More shoppers are prioritizing value as living costs rise. UPS research shows that 48.8% of Gen Z (born 1997–2012) respondents said affordability, value and product availability are their top purchasing priorities.* And when it comes to spending, 62% of Gen Z consumers report that they are trying to save more money and budget more carefully.**

Shifts in Buying Power

Like Gen X (born 1965–1980), Gen Z is quickly becoming a major market force. This group is on track to become the largest and wealthiest generation by 2035, and their preferences are changing how brands connect with shoppers across age groups.

“The next generation of shoppers are digital natives, and they’ve come to expect full transparency and a frictionless end-to-end experience,” says Zachary Kotleski, UPS Direct to Consumer Strategic Lead.

For retailers, this means that while many customers are more price-sensitive, they still expect shopping to be quick, simple, personalized and mobile-friendly. Brands that attract and retain loyal customers are rethinking how online and in-store experiences work together to deliver exactly that.

Generational Shopping Is Reshaping Retail

As Gen Z steps into the spotlight as the first generation to grow up entirely online, tech-driven change is accelerating and reshaping how people shop. Gen Z favors mobile-first experiences and often discovers new products through influencers. This shift is prompting brands to rethink how they connect with customers.³

UPS research shows that Gen Z and Millennials (born 1981-1996) put a premium on convenience and technology, and 42% of Gen Z shoppers say they mostly shop online.*** This group is used to comparing prices across brands and channels, so price transparency matters a lot to them.

While 59% of Gen Z report using buy now, pay later options,⁴ they have little tolerance for surprise checkout fees and often abandon their purchase when those fees appear.

However, retailers need to keep in mind that:

• 78% of consumers say they are trying to save more money.^†
• 38% say they plan to be more selective about discretionary spending.^††

Search Behaviors

Unlike younger shoppers who usually start with a search engine, Gen X tends to go straight to retailers they already favor, whether online or in person. The UPS survey found that 21% of Gen X prefer discovering new brands in-store, while 46% kick off their product search on a retailer’s website or by visiting a store.^†††

Gen X carries significant spending power.⁵ They make up just 19% of the population but account for 31% of both in-store and online retail sales. Often described as a bridge generation, Gen X sits between the store-first habits of baby boomers and the digital-first behaviors of Millennials and Gen Z.

Building Real Connections with Omnichannel Retail Strategies

Consumer expectations and shopping behaviors vary across generations.

To win over Gen Z and Millennial shoppers, retailers need an omnichannel presence that’s easy to find, reflects an authentic voice, aligns with consumer values and is consistent across environments, including social media. In fact, 53% of shoppers aged 18-26 say they have made a purchase on social media.⁶

When it comes to social commerce, shoppers tend to rely on authentic reviews, peer recommendations and user-generated content more than traditional brand messaging, so the brands that succeed socially follow this playbook.

“User-generated content is generation-agnostic,” says Rohit Bhalla, Luxury Goods Strategic Lead, UPS. “Honest reviews from real people build trust with shoppers of all ages.”

Retailers can tailor the shopping experience by using search data to suggest relevant products and by leveraging AI-powered search or chatbots to nudge customers from browsing to discovery and purchase. The goal is simple: turn exploration into trust, trust into a sale and make the experience feel easy from start to finish.

Personalization and trust shouldn’t be competing priorities. Shoppers want experiences that feel relevant without feeling intrusive. And they want to feel understood and supported throughout the entire shopping experience.

Research shows that baby boomers and Gen X now make up the bulk of retail spending, controlling nearly two-thirds of U.S. retail dollars.⁷ These shoppers care more about trust, product reviews, convenience, service and quality rather than trends or social influence. And in the age of AI and bot-created content, authenticity is key to winning consumer sentiment and optimizing for top of funnel visibility. Leading online marketplaces as well as search platforms and Large Language Models (LLMs) have begun to identify bot-created reviews and deprioritize them in search results.⁸

Gen Xers and Boomers have not abandoned in-person shopping. They value in-store experiences with knowledgeable staff and appreciate familiar, reliable brands with transparent pricing, guarantees and warranties.

Loyalty programs that deliver meaningful rewards, such as discounts, points or exclusive deals, continue to resonate strongly with this group.

Omnichannel Is King

Despite the influence of digital shopping, in-store retail isn’t going anywhere and will continue to account for a significant share of retail sales. UPS research shows that 59% of customers still prefer shopping in-store, while 61% prefer home delivery over in-store pickup.^‡

To succeed in today’s retail landscape, businesses need a flexible, responsive omnichannel strategy that supports the entire customer journey. Shopping preferences, fulfillment choices and spending habits differ by generation and product type. According to UPS survey findings, the key to boosting sales and building loyalty across all generations is to focus on an omnichannel approach backed by a nimble, adaptable supply chain.

Meeting customers where they are is vital. Shoppers move fluidly between channels, and loyalty grows when brands stay aligned with them. To make that happen, retailers must maintain a seamless experience across in-store environments, apps, websites and social platforms.

From Personal to Profitable: The Power of Tailored Experiences

Personalization remains a key part of the buying journey, but it looks different across demographics.

• Younger Shoppers respond best to dynamic, data-informed personalization that feels authentic and relevant. They’re also focused on ethical consumerism, choosing to buy from brands that align with their personal values and donate a percentage of profits to important causes.

  • Gen Z wants brands to understand them and to know their preferences and even anticipate their needs.
  • Millennials respond well to convenience and value. They also like recommendations and loyalty offers that reflect how they shop.

• Middle-aged shoppers value relevance, convenience and reliability — anything that saves them time or money.

  • Gen X prefers personalization that respects their time and avoids unnecessary complexity.

• Older shoppers favor clear, straightforward engagement, simple digital or in-store experiences, and loyalty rewards they can easily redeem.¹⁰

  • Boomers place greater value on trust, clear communication and great service than data-heavy tactics.

Small- and medium-size businesses (SMBs) can use AI to offer personalized product recommendations, visualization tools and customer service chatbots. By adopting a personalized, omnichannel approach, retailers can build loyalty across customer groups by tailoring their strategies to factors such as age, digital comfort, life stage and personal values.

Retail success in 2026 depends on how well brands understand their customers and respond to shifting priorities across channels and generations. Retailers that invest in flexibility, personalization and experiences that foster trust are more likely to stand out and earn long-term loyalty.

UPS supports retailers with end-to-end solutions for omnichannel inventory strategies, optimized fulfillment workflows, supply chain visibility, strategic partnerships and technology-enabled demand planning, helping brands stay competitive as the retail landscape continues to evolve.

“UPS B2C Retail Consumer Study” Questions: *Which of the following factors are priorities when you are making purchases? **Which of the following saving and spending actions, if any, are you currently doing or plan on doing in the future? ***How do you typically split your holiday shopping between online and in-store? †Which of the following saving and spending actions, if any, are you currently doing or plan on doing in the future? ††You mentioned that you are planning to or are interested in spending more. What, if any, might be some of the outlooks you have on spending? †††Where do you usually start your search for a product? ‡Which of the following do you prefer when it comes to shopping?

The study was distributed by panels in an online format to 1,579 respondents (B2C) in the U.S., with each respondent being compensated at an agreed-upon rate for their time. Each survey took approximately 10 minutes to complete. The survey ran November 6-10, 2025.

¹ “2026 Retail Predictions: Profitability, AI Disruption, And Policy Shifts,” Forbes, November 18, 2025.
² “Global Retail: 2025 Trends & 2026 Outlook,” Colliers, November 12, 2025.
³ “The Gen Z paradox: Spending less, expecting more,” PWC, October 6, 2025.
⁴ “BNPL on the Rise: 65% of Gen Zers using BNPL More in 2025,” PartnerCentric, April 30, 2025.
⁵ “Gen X: The Overlooked Generation With Outsized Impact,” ICSC, October 23, 2025.
⁶ “Social Media Shopping Statistics,” Capital One Shopping Research, November 6, 2025.
⁷ “Circana report charts generational shifts reshaping retail spending,” Mass Market Retailers, October 8, 2025.
⁸ “Generative Engine Optimization: How to Dominate AI Search,” Cornell University, Accessed September 10, 2025.
⁹ “The 10 Behavioral Distinctions of Older Customers,” Coming of Age, Accessed December 9, 2025.
¹⁰ “New Global Study Reveals Consumers Demand More Personalization in Marketing,” Business Wire, April 10, 2025.

Individual results and options will vary. UPS makes no promises of any specific outcome in this document but instead provides only example outcomes based on certain UPS customer experiences.