Gen Alpha kids are still learning long division, but by 2029, their collective spending power will exceed $5 trillion. And we’re not talking about allowance money. Born into digital fluency, Gen Alpha is already reshaping how families shop. Their consumer expectations are a direct inheritance from having Millennial parents, who invited their kids into brand decisions and modeled loyalty to brands that align with their values. Gen Alpha is already the largest generation globally, representing roughly 24% of the world’s population — and their impact on retail is only beginning.
| Generation | Birth Years | Total Population | % of Total Population |
|---|---|---|---|
| Generation Alpha | 2013 – 2025 | 2.0B | 24.4% |
| Generation Z | 1997 – 2012 | 1.9B | 22.9% |
| Millennials (Gen Y) | 1981 – 1996 | 1.7B | 21.2% |
| Generation X | 1965 – 1980 | 1.4B | 16.7% |
| Baby Boomers | 1946 – 1964 | 1.1B | 12.8% |
| Silent Generation + Older | ≤ 1945 | 167M | 2.0% |
Source: Visual Capitalist
Cross-Gen Influence
That values-first mindset has shaped how decisions actually get made at home. Gen Alpha opinions carry substantial weight: 9 in 10 provide input on purchases, and 70% report that adults act on their suggestions when making household purchases.
And while Millennial parents control the purse strings (for now), they’ve cultivated decision-making power in their children, and Gen Alpha knows how to wield it. What families buy — from skincare to sneakers — is decided collaboratively, through conversations about preferences, values, and what feels right for the home.
For brands, this cross-generational influence represents a strategic opportunity that extends far beyond immediate sales. Gen Alpha’s influence drives today’s purchases while simultaneously building brand loyalty that lasts. So, when a 10-year-old successfully argues for Nike over a generic sneaker, that family is not looking at a one-time purchase but the beginning of a decades-long customer relationship. More importantly, Gen Alpha’s influence spreads across social circles, shaping individual preferences into broader household spending patterns. Brands that treat Gen Alpha as real customers will win twice: once now, and again when these shoppers hit adulthood with spending power of their own.
Tween Power, Defined
The first step in securing those consumer dollars? Recognizing that tweens exist as a distinct customer segment. Gen Alpha expresses a clear desire to be seen as savvy consumers and meaningful contributors in their own right. Raised amid constant brand exposure across social media and digital platforms, they’ve absorbed modern marketing language faster than any generation before them.
Gen Alpha tweens expect autonomy in their shopping experience. Thirty-nine percent identify as “Confidence Choosers,” moving through stores with clear intent and expecting retailers to support their independence and individuality. The question for brands: are they designing experiences that reflect this reality?
A Tactile Store Experience
Nearly three-quarters of Gen Alpha prefer to test, touch, and move through a retail space as much as they scroll through feeds. That means clear, intuitive signage (66% say it’s critical) and the ability to control their own journey without staff intervention. Gen Alpha expects physical retail to meet the same frictionless standards they’ve come to expect from e-commerce while also delivering something online shopping cannot: collaborative, immersive experiences. And Gen Alpha doesn’t just want to browse — they want to participate. Ninety-seven percent want to help brands make design decisions, from testing new products to shaping store environments. They’re not asking to be passive consumers; they’re asking to be collaborators.
Target’s Soho concept store in New York City offers a blueprint for experiential retail that puts style and discovery at the center. The store features elements such as “The Drop” and “Curated By” to showcase partnerships with influential voices. It’s retail as theater, with rotating activations that build on the idea that shopping should feel like an experience, not a transaction. For Gen Alpha, who already rank Target as the third-most relevant brand for their age group (43% in MG2’s study), this signals that a brand they already trust is not only building spaces that reflect how they want to shop, but also doubling down on store-level investment — from labor and training to operational improvements — to strengthen the in-store experience.
Gen Alpha fan favorite LEGO (58% of respondents consider the brand built for their age) offers a blueprint through in-store play zones and its LEGO Insiders ecosystem, blending physical building with digital engagement and inviting kids to experiment, collaborate, and shape their own experiences.
For Gen Alpha, these environments feel intuitive, and mirror how they already engage with brands — through story, interaction, and shared experience. Physical retail, when done well, becomes an extension of the digital worlds they inhabit rather than a separate channel altogether.
Gen Alpha is rewriting the rules of retail. Is your real estate strategy keeping up? Connect with a Colliers Strategic Advisor who understands both the consumer and the market. Click here.
Anjee Solanki
Nicole Larson
