Gen X Drives 31% Of Retail Spending While Many Brands Ignore Them

Gen X represents just 19% of the U.S. population but accounts for 31% of all retail spending, yet retailers seem to forget the significance of this generation. The powerhouse demographic of 45- to 60-year-olds is approaching peak earning years with $42 trillion in current household wealth and an estimated $1.4 trillion a year in inherited assets projected over the next decade.

“Retailers must recognize that Gen X is not only entering their peak inheritance years, but they also already lead in spending per transaction across nearly every category (e.g., apparel, home furnishing, fitness centers, and restaurants). Bold moves begin with designing retail strategies that reflect Gen X’s lifestyle: efficient, trustworthy, and premium without being flashy,” explains Tom McGee, president and CEO of ICSC.

Gen X: The Forgotten Generation

While brands chase Millennial mindshare and court Gen Z through TikTok campaigns, Gen X quietly drives the highest revenue per shopper of any generational cohort. Retailer oversight is striking as 92% of Gen Xers use social media daily, and they comprise 28% of TikTok’s user base, yet only 5% of brand influencer spending targets them, according to new research from ICSC.

Gen X has never really been studied to the same degree as Boomers, Millennials, and Gen Z. “The simplest reason for the oversight of Gen X is the size of the generation, always the smallest, so retailers and businesses thought they could get more bang for their marketing buck targeting Gen X’s neighboring generations: Boomer and Millennial…and now Gen Z,” explains Leslie J. Ghize, executive vice president of Doneger, Tobe.

Culturally, Gen X has operated in the shadows of two noisier generations, Boomers who shaped institutions and Millennials who dominate social conversation, allowing retailers to overlook their substantial economic power. “I would additionally posit that Gen X was the hardest to woo. I consider them the head-down generation. Heads down, paying their dues, working independently, handling their responsibilities, not complaining. They are realists, not necessarily dreamers, which makes capturing their attention with traditional marketing harder. It has to ring true but also pique interest,” stated Ghize.

The retail industry’s rush to chase digital-native consumers and master emerging platforms like TikTok and Instagram has created a blind spot for a generation that shops omnichannel. With 77% of Gen Xers prefering physical locations, leading marketers to underestimate both their digital fluency and their substantial in-store spending power.

Gen X consumers demand seamless shopping environments and express little tolerance for common in-store pain points. Customers expect real-time inventory accuracy, consistent staffing, and clear communication from retailers and brands they shop.

Capitalizing On The Outsized Economic Influence of Gen X

“Gen X punches far above its demographic weight. Retailers must respond by recalibrating marketing and merchandising strategies that have long over-indexed on Boomers and Millennials. This generation is caught in the middle: They want the ease of shopping that older shoppers require, but they use tech and social media more like younger shoppers,” advises McGee.

Gen X overwhelmingly prefers the physical store experience, and their spending reflects that. “However, not all in-store experiences are created equal. Retailers should treat brick-and-mortar not just as a sales channel but as a loyalty engine and point of in-person connection for Gen X,” said McGee.

With 81% of Gen X staying loyal to brands they believe in, brands must build authentic connections with a generation that values trust above all. “Leverage straightforwardness, offer truly interesting and novel products, show the quality, explain what they are investing in, add an element of practicality, and a touch of nostalgia. This group wants to feel like they earned it, it’s authentic, it’s well-made, and they connect with it emotionally. They do not take themselves too seriously. Be funny in a sophisticated way, but not in a silly way,” advises Ghize.

Retailer Of Choice For Gen X

As Gen X enters their prime wealth transfer years while maintaining the highest spending per transaction, retailers can make bold moves to become the retailer of choice for the next decade. “Finding the right balance of old and new values, Gen X likes a best-of-both-worlds scenario. If you have a beloved brand, bring back the essence of the brand, but modernize it. Gen X does not dwell in the past, but they do appreciate nods to it. So if it is a fashion brand, a hospitality nameplate, a snack food, a beer brand, move it forward and make it relevant to their lives today,” stated Ghize.

As an example, Nordstrom Rack recently unveiled a reimagined brand identity that is inspired by the Rack logo used in the 1970s and 80s, yet modernized for today. It’s a nod to the past with a fresh, authentic branding that will resonate with Nordstrom Rack’s current target market. The branding will be marketed as part of the Nordstrom Rack App, social media, and email communications, as well as in new and remodeled stores. This type of updated retro will appeal to Gen X, especially with a beloved brand such as Nordstrom.

Marketing to Gen X

“Gen X has been on the same trajectory as technology, picking up new technologies as they are introduced. They may not be early adopters, but they are on-boarders, whereas Boomers were not as comfortable, and Millennials were too comfortable, relying on technology to the point of neglecting interpersonal development. Tech doesn’t scare Gen X, but they want you to use it as necessary, not gratuitously. All the social platforms should be treated as channels that you can connect with Gen X on; the content, voice, and product mean more than the tricks and tactics that appeal to younger generations,” explains Ghize.

McGee discussed that premium positioning for goods and services tied to lifestyle enhancement, including but not limited to home upgrades, wellness services, and luxury apparel, are key considerations for the generation. “Targeted marketing investments that speak to life transitions will also be crucial to capturing the attention of Gen X, with many of them navigating retirement planning, caregiving for family members, and home transformation,” said McGee.

Gen X consumers are discerning shoppers who value their time and seek authentic, no-fuss solutions that fit demanding lives. This cohort, widely known as the sandwich generation, is taking care of aging parents and young children simultaneously. They want multifunctional products that simplify routines, minimalist offerings that strip away the unnecessary without sacrificing results, and retail environments that respect their time and intelligence.

“Retailers must stop overlooking Gen X in brand messaging and product development, instead launching campaigns that reflect Gen X’s values and speak to them directly by emphasizing authenticity, efficiency, and convenience, while optimizing store formats and tenant mixes to mirror their preferences,” said McGee.

For a generation that relies more on family and friend recommendations than any other generation, brands can cultivate word-of-mouth advocacy within this influential cohort. “Concentrate on fewer, more meaningful interactions, like a super creative printed piece, an event that is truly meant to share the product with them, personal service, convenience, and above all, common sense. Random influencers are not appealing to them,” said Ghize.

Gen X represents retail’s most significant untapped opportunity. Those who continue chasing noisier demographics will watch their most profitable customers reward the competitors who finally bothered to pay attention.

The comprehensive Gen X ISCS study analyzed $5 trillion in retail transactions across 426 retailers and 11 major categories from 2020 through 2024.