Gen Alpha loves brick-and-mortar retail. Here’s what they want when they shop.

Just when it felt like we finally had a firm grip on what Gen Z consumers are looking for, Gen Alpha has entered the chat as the latest generation shaping retail and, well, making us feel old.

The generation, roughly spanning those born between 2010 and 2024, doesn’t have much of its own money to spend quite yet. But we already know their impact on culture (who among us didn’t reluctantly Google what “6-7” meant last year?), and as they enter their teens, they’ve become “influencers in the household,” too, Melissa Gonzalez, principal and founder of retail consultancy MG2 Advisory and author of a new report on Gen Alpha’s impact on retail that surveyed 500 children between ages 8 and 14, told Retail Brew.

Gen Alpha has over $100 billion in spending power, which is nearly half of household spending, per an August report by DKC—and Mintel expects this spending power to balloon to $5.5 trillion by 2029.

Gen Alpha shares some similarities with their generational neighbors, Gen Z. They both prefer to “have a seat at the table” when it comes to brands, Gonzalez said, and enjoy in-person retail experiences. But while other generations turned to Google or even TikTok for information, Gen Alpha is adept with AI and the use of ChatGPT, and has grown up in the virtual universe of Roblox. At the same time, 73% prefer to shop in stores, per MG2—a stat that aligns with previous study from Numerator last fall.

“With the Alphas, there’s fluency in interacting, whether it’s digital, physical, all of it—they’re the most fluid generation with all of it,” Gonzalez said. She shared with Retail Brew how brands and retailers can engage with this increasingly influential generation.

Custom built: From Roblox, Gen Alpha has become used to building things at a young age, which has lent itself to a desire for co-creation with the retail brands they engage with, Gonzalez noted. In MG2’s recent report, a whopping 97% want to collaborate with brands on decisions, whether that be packaging choices or in-store layouts. They love the opportunity for customization and personalization.

Some brands are already leaning into this penchant for personalization. Gonzalez cited beauty brands like Bubble, which has a brand ambassador program that allows customers 16+ to participate in product testing, and sneaker brand Converse, which allows shoppers to customize sneakers and made research firm Beano Brain’s list of Coolest Brands 2025, according to Gen Alpha. Still, there remains a big opportunity for brands to lean further into customization, Gonzalez noted.

When MG2 asked which brands or stores respondents believe cater to consumers their age, younger Gen Alphas listed Lego and Build-a-Bear, while older shoppers named Nike and Apple. Target, Five Below, and Crocs were also favorites across Gen Alpha, as was Sephora. Of course, no one could miss the Sephora tween phenomenon of 2024, but brands and retailers that balance being age-appropriate while not looking outwardly childish will win with the generation, Gonzalez noted. She pointed to Sincerely Yours, a skin care brand founded by 16-year-old social media star Salish Matter that debuted exclusively at Sephora last year, as a clear winner in the space.

Keeping in touch: While the generations of yore have largely seen online shopping as a relatively new concept, Gen Alpha, having entirely grown up with screens, conversely sees in-store shopping as the more novel experience. Gen Alpha likes brick-and-mortar stores because of the hands-on experience, and the fun and social aspect, per the report.

And while Gen Z, too, prefers an in-store experience, Gen Alpha differs in their desire for interactivity in stores, as over half will leave a store if there isn’t anything for them to try out (that ability to test has helped Sephora thrive with the generation). Gonzalez chalked this preference up to their experiences meeting up in virtual worlds since they were young.

“If you’re creating an environment where they could play and they could learn and they can socialize and they can experiment, and they’re spending more time with your brand—that’s a win with Gen Alpha,” she said. “That’s how you’re going to get more of the loyalty out of them.”

In stores, Gen Alphas like their autonomy, largely preferring to explore on their own terms, so an in-store layout with clear visual cues is key, while elements like food or drinks and digital games will keep them there longer.

“They want a balance between discovery and predictability,” Gonzalez said. “How can you do that in the store environment, where maybe there’s certain aspects that they can rely on, and then that balance of freshness and new and discovery?”