Coming out of the pandemic, in our monitoring of the retail universe, Gen Z were the first cohort to embrace everything IRL. But now we see a different dynamic taking shape – they are acting more like Millennials, who have always embraced everything online, including shopping. For Gen Z, however, the experience of finding a piece you love in-store is quickly becoming a luxury of its own—and one they rarely feel is available.

Year after year, our studies show that younger women are leaving department stores (including their websites) as a source of IRL inspiration. Acquisitions and consolidation have squeezed innovation, risk-taking, and championing of exciting, emerging new brands out of department stores, which used to feature them, RIP Barney’s. Now they are bland and play it safe, which goes against the grain of what fashion stands for. 

Young shoppers passionate for fashion are left with little to browse and even less to buy. They read about unethical and hypocritical business practices, which are meaningful to this generation that feels a sense of agency in wanting to see more equity in the world. Saks, for example, now takes up to 90 days to pay its vendors, which is a devastating blow for emerging or founder-led brands trying to break onto the scene. 

According to GWI, more than half of Gen Z are currently shopping online. Inventory is guaranteed and they find it more financially safe, taking part in loyalty and points programs, and using ninja-like skills to comparison shop on price. Like the rest of America, they’re more dollar conscious this year than last. Online shopping for fashion works fine for replenishment, colors they’re familiar with, brands they already know. But they also tell us it comes with anxiety-producing concerns like: “Will it fit?” “What will the fabric feel like?” “Is this worth the charge for shipping?” And it is just not nearly as satisfying or fun.

This is a huge missed opportunity for retailers. Gen Z loves to shop in person. They recognize that it is a fully sensory experience. It provides the opportunity to see how things look on your body, feel fabrics, explore a collection, see something you may never have considered if a sales associate hadn’t brought it to your attention. In a luxury boutique, it’s a whole different level, and many of these buyers have learned from their mothers what they might expect from the experience: ie a glass of champagne to put you in a luxury mindset and take more time to browse.

Sadly, this is not often happening and the headwinds are multiple. Aside from recessionary jitters and grim job prospects, Gen Z women who tried to enter luxury boutiques during Covid often had terrible experiences. The memories still linger of disappointing inventory, simply being told “no, sorry” and having to wait outside in lines just to get in and browse. 

Luxury retailers in particular need to invest in seducing younger shoppers back in store.

Imagine the shopping desire through the eyes of a 26-year old fashionista. In New York City, for example, if she wants an outfit for that night (sudden exciting opportunity, date, party), her options are surprisingly limited. She’ll start at the new LuisaViaRoma flagship store because they carry a variety of brands and skew a bit younger than the boring department stores. If she’s unable to find something she loves there, she’ll wander through the Soho boutiques, likely picturing her SSense wishlist and wondering why nowhere in NYC carries Vaillant or Isa Boulder or Mirror Palais. She knows better than to go to Saks or Bergdorf’s, but feeling defeated and out of time she may run in, hoping for a miracle. Odds are she’ll end up back in her apartment, tearing through her closet, feeling frustrated that she didn’t just order a few things online a few days ago so she could have something new for nights like this.

Online fashion destinations are also disappointing her. Farfetch and Net-a-Porter are hanging on by a thread and Matches is gone. Not a reassuring shopping experience when you’re splurging, to know you may lose the item or the customer service experience altogether. 

In contrast, Revolve group reported that their 2024 Q4 sales rose 14% since Q4 in 2023. MyTheresa reported Net Sales growth of 13% in Q1 of 2025, and privately-held SSense also reported positive sales figures and is valued at $4.2 billion. What are these online multi-brand retailers doing that department stores and the failing online sites aren’t? They seem to know their audience which allows them to curate well.

Revolve carries the latest trends from trustworthy brands over a broad array of price points. For the luxury-minded Gen Z, there is Revolve-owned FWRD which does the same thing, elevated. 

SSense offers the most surprising and niche assortment of brands. (Surprise is such an underleveraged experience in retail right now.) SSense has a pulse on what’s cool and makes it easy for fashion lovers to discover the hottest brands all in one place. 

MyTheresa thrives by catering to their best clients and doing it well. Their personal shopping, we hear from our research participants, are stellar (Net-a-Porter staff have jumped ship). Unmatched events and exclusive access are their bread and butter, and many of the best personal shoppers from the private-equity squeezed online retailers have jumped ship to MyTheresa. 

Worth noting: My Theresa, Revolve and FWRD have female creative directors – a rising theme across successful beauty and fashion brands. 

Which is a good segue to our next post…