The trend: Gen Z’s balance sheets were fragile even before the latest tariffs arrived: The cohort now spends nearly twice what it holds in savings, per the Bank of America Institute.

With universal duties set to lift prices and erode confidence, young shoppers are reevaluating when, where, and how they buy. Those shifts could harden into long‑term habits just as Gen Z’s global spending power is projected to soar from $2.7 trillion in 2024 to almost $12.6 trillion by 2030.

Below are three areas positioned to gain ground in the tougher retail landscape.

1. Secondhand goes mainstream. Because 97% of apparel and footwear in the US is imported, tariffs will almost certainly raise prices—a point already acknowledged by brands from Columbia Sportswear to Shein.

• Sticker shock will steer more Gen Z shoppers toward resale. It will build off an already sizable base: 68% already buy secondhand, up 3 percentage points YoY, per ThredUp’s 2025 Resale Report.
• Supply is following demand: 76% of retailers without a resale program say they are considering one—2 percentage points more than last year.
• The shift is likely to spread beyond clothing; a retailer like Ikea, for example, could expand its peer‑to‑peer marketplace for pre‑owned furniture.

If new‑goods inflation persists, the appeal of resale will only increase.

2. Private label growth will continue to soar. The 10% across‑the‑board tariff will hit grocery aisles first, pushing up the cost of staples such as avocados, bananas, and coffee.

• That sticker shock is poised to push Gen Z—already the generation most willing to try private‑label goods, per a December Circana survey—toward lower‑cost store brands.
• We expect retailers to follow Albertsons’ lead with more private label offerings. For example, the grocer recently rolled out a curated, Trader Joe’s‑style limited‑time drop of “lemon‑inspired” products that stretched across its Signature Select, Overjoyed, and Soleil lines.

3. Warehouse clubs widen their reach. Value hunting is also drawing Gen Z to warehouse clubs.

• Gen Z and millennials now account for roughly half of Sam’s Club’s new memberships, helped by digital conveniences such as Scan & Go checkout that lets shoppers bypass traditional checkout lanes.
• Riding that momentum, the Walmart‑owned chain plans to open about 15 stores annually, remodel all existing locations, and aims to double its membership in the next eight to 10 years.

Our take: Gen Z’s rising economic clout—and its sensitivity to price—make it a critical audience in an inflationary, tariff‑driven market. Retailers that lean into resale channels, differentiated private‑label programs, and value will be best positioned to win the loyalty of this cost‑conscious, digitally savvy generation.

Go further: For a deeper dive into the wide-ranging implications of the Trump administration’s trade policies on brands, retailers, and media players, read our report, Impact of Tariffs on US Businesses.