Gen Z is shopping the holiday vibes, not just the discounts

Consumers may be tightening their purse strings and increasingly leaning on buy now, pay later but the holiday spirit is still alive and well—at least in stores.

New research from Lightspeed Commerce found that Gen Z is heading back to stores and malls largely for the holiday atmosphere.

About 8 in 10 consumers ages 18 to 24 said that the “holiday experience” was important to them.

That festive feel appears to be doing real work for retailers. The survey, which included responses from more than 3,000 adults across the US and Canada, found that 67% of Gen Z shoppers stay longer when music, decor, displays, or scents create a holiday vibe—nearly double the rate of shoppers over 65.

For younger consumers, the draw isn’t just shopping; it’s the social rituals that come with it. Many cited taking photos, filming videos, and sharing those moments with friends as key reasons they’re drawn to stores during the holidays.

And those rituals can also translate into sales. More than half of Gen Z shoppers (58%) and younger millennials (55%) said they’re more likely to make a purchase in a physical store when retailers offer “small seasonal touches,” such as gift-wrapping stations, hot drinks, or in-store events.

“Shoppers aren’t walking away from the holidays; they’re approaching them with intention,” Dax Dasilva, founder and CEO of Lightspeed Commerce said in a statement. “When retailers pair a welcoming, memorable environment with clarity and flexible ways to pay, they meet customers where they are this year—both emotionally and financially.”

The findings echo a broader shift toward experiential retail among younger consumers. Earlier this year, Harris Poll and Quad’s The Return of Touch report found that 84% of Gen Z and millennials value retailers that mix technological and physical experiences, while 86% said being able to touch and feel products is “essential” to their purchasing decisions.