What Can ACSI® Retail Data Tell Us About “Kids These Days”?

Not too long ago, Millennials were known as ruthless (if shortsighted) industry-assassins. It’s been a while though since the headlines were about Millennials killing the napkin industry or about how too much avocado toast impacts one’s homeownership prospects.

Nowadays, Gen Z have replaced Millennials as the prime suspects for industry killing. Despite two thirds of them being adults by now, Zoomers have certainly overtaken the role of “kids these days” whose consuming habits must be dissected to capture their elusive market.

The challenge with Gen Z is that they aren’t spending the way retailers would like them to. Many of them are happy buying secondhand and this past holiday season, plenty of younger Americans opted to make their presents rather than buy them. They are a generation often characterized as bargain-hunters that aren’t shy about paying to engage with their hobbies or the trends that appeal to them.

The American Customer Satisfaction Index (ACSI®) has been an objective measure of U.S. economy-wide customer satisfaction for over 30 years. Industries do fall off the index from time to time (cigarettes, landline phones, print newspapers, etc.), but they aren’t the victims of any single generation. In fact, they’re all still kicking, but they’re just not as important to the overall U.S. economy as they were in the 90s and aughts.

Same stores, different worlds

In January, the ACSI published its 2026 Retail and Consumer Shipping Study (you can also take a peek at the press release if you prefer a summary). As with all ACSI scores, there are nuances behind each number. The youngest segment of ACSI respondents are 18-25 years old. When the retail industry scores are segmented by age, it’s clear that consumers experience the retail sector very differently depending on their life stage.

The retail sector’s challenge in experience optimization for younger consumers is evident in the demographic’s industry ratings. In the study, specialty retailers earn an aggregate industry score of 80 on a 100-point scale. Segmenting the data to just younger shoppers, that number drops to 74. Online retailers earn a score of 79 but young shoppers rate the industry at 71 points. The satisfaction gap narrows for general merchandisers (79) and supermarkets (78), where young consumers rate their satisfaction just four points lower than the overall scores.

ACSI historical data indicates that the lower satisfaction among 18–25-year-olds is not a new phenomenon (it goes back at least a decade). It’s not unique to Gen Z, it’s not just a covid or post-covid thing, and it’s not all doom and gloom.

The bright side

Cumulative brand-level satisfaction data from the past five years reveals the brands that resonate with younger shoppers and sheds some light into the key drivers of this demographic’s satisfaction.

In online retail, Amazon and Etsy emerge as co-leaders in satisfaction among young shoppers. Beauty retailer, Ulta, leads specialty retailers. When it comes to general merchandisers, Costco, Sam’s Club and Target share the top spot in young shoppers’ estimations.

The real standout satisfaction leader for this demographic is Trader Joe’s, however. It’s the only brand to reach a score in the 80s. As a long-time supermarket leader in ACSI’s syndicated studies, it seems that Trader Joe’s offers consistently excellent experiences across age groups.

While Trader Joe’s is the highest performer according to young shoppers, all the leaders do well and have opportunity for improvement. What unites all the top brands among the youngest shoppers are relatively low complaint rates and relatively high ratings for metrics related to value, merchandise, mobile apps, and customer service.

Complaints from young shoppers offer retailers valuable insights. According to the 2026 study data for the retail sector overall, 18-25-year-olds have the highest complaint rate and express the lowest satisfaction with how those complaints are handled. Younger customers making complaints have satisfaction rates several points lower, on average, than those who don’t.

Successful complaint handling across all age groups is a powerful tool for turning a negative experience into an outstanding one, and an opportunity to reward customers for their valuable feedback and earn loyalty.

Time to grow up with the “kids”

Gen Z is experiencing a different world than the one many of us grew up in and are used to. ACSI’s own David Ham points out in his recent blog about Gen Z NFL fan satisfaction that younger fans having lower satisfaction ratings doesn’t mean they’re disengaged. Young fans were the most likely to have placed a bet on an app, adding a layer of investment and gamification to their experience. We see these trends echoed in retail. Young consumers are often more comfortable in digital environments and engage with brands in different ways than older generations.

Some retail brands are leaning into gamification and seeking to meet young consumers where they’re at by embracing Roblox, for example, a gaming platform popular among young users. Walmart has had a presence on the platform since 2023, while Salvation Army is venturing into bringing thrifting into virtual storefronts.

Moving forward, retailers need to grow with their younger shoppers. These shoppers will become their main base soon enough. Maybe the future of long-term retail success lies in blending the virtual and brick-and-mortar experiences. Maybe it’s in increased transparency and community involvement to align with the generation’s ethical and environmental concerns. In all likelihood, it will be a mix of all these things and more, and the exact formula for success will be unique to each brand.

ACSI’s proprietary technology helps brands identify the key drivers of their customers’ satisfaction. Benchmarking reveals relative strengths and pain points compared to competitors – and demographic segmentation reveals the strengths and pain points within the different facets of their own customer base.

Is your brand resonating with the full spectrum of your customers? Is one group being overshadowed by another? Contact us today if you want to know how ACSI can help optimize the experience for all your customers.