Generation X (Gen X) may be among the smallest generational cohorts, but new research from ICSC reveals that they are one of retail’s most valuable and underestimated consumer groups. 

Tom McGee, President and CEO of ICSC, said, 

“Common monikers for Gen X like the ‘sandwich generation’ and the ‘forgotten generation’ speak to Gen X as the overlooked middle between Baby Boomers and Millennials who often get more attention. But our new data tells a different story: They are the powerhouse driving today’s retail economy, spending more per shopper than all other generations.” 

Born between 1965 and 1980, Gen X has the highest revenue per shopper (RPS), or average purchase, across nearly every category, drives 31% of in-store and online spending, yet represents only 19% of the U.S. population. 

McGee added,

“Gen X is pragmatic, loyal to brands they trust, and influential decision-makers for themselves, their children, and their parents. For retailers, there is no bigger near-term growth opportunity than winning the loyalty and the dollars of Gen X.”

Examining $5 trillion in in-store and online retail spending across five years and 426 retailers, this comprehensive study shows why Gen X holds outsized spending power that brands should be targeting.

ICSC’s findings show that Gen X exerts an outsized influence on retail and consumer spending. Gen X outnumbers Baby Boomers, Millennials, and Gen Z in in-store revenue per shopper.

The Gen X Profile

Gen X holds a significant spending power and is poised to grow even more, as one in three has or expects to receive an inheritance. 

Thirty-five percent of this incoming wealth is projected to be channeled to retail purchases and experiences, totaling about $308 billion annually in spending, further amplifying their impact.

Also, three in four Gen Xers are caregivers, supporting both children and aging parents. As the “sandwich generation,” they sit at the center of household spending decisions across multiple generations – but the resulting stress also shapes their behavior. 

More than half of Gen X survey respondents are concerned about rising costs, retirement savings, and healthcare. Three-quarters said caregiving has significantly affected their spending, and 53% have had to cut back on discretionary expenditures as a result.

How to Gain Gen X

Earn Gen X loyalty by delivering efficiency, convenience, and trust.

McGee added,

“Gen Xers’ extraordinary spending power and unique life circumstances make them a vital part of today’s retail landscape and a decisive force in shaping its future. The message for retailers focusing their marketing on Gen Z, Millennials, and Baby Boomers is clear: Recognize the immense value of the generation in the middle. The future of retail growth isn’t defined solely by the youngest or oldest shoppers — it hinges on recognizing and capitalizing on Gen X’s established and growing spending power.”

Gen X has little tolerance for common, in-store pain points like long checkout lines and lack of inventory. While convenience may draw Gen X in the door, trust and experience keep them coming back. 

They are a highly loyal cohort, and more than half report that their brand loyalty has strengthened over the past five years.

Though not digital natives, Gen Xers are tech-fluent and pragmatic, adopting digital tools that enhance convenience. Nearly 80% use self-checkout kiosks regularly, and over two-thirds use mobile apps and social platforms like Facebook and TikTok to discover or purchase products.

See the full report, Gen X: The Overlooked Generation with Outsized Impact, here.