Generation Alpha — known for introducing slang such as “sigma” and “skibidi” into our national lexicon — is coming of age in a time of unparalleled digital connectivity, making it the youngest generation to experience brand awareness and buying power.
Despite their young age and limited income, their influence is already rocking the retail industry — and will only continue to grow in the years to come, according to research from Advantage Unified Commerce (AUC), a division of Advantage Solutions that provides omnichannel solutions across e-commerce, lifestyle and retail platforms. Currently, Gen Alpha is worth over $28 billion in direct spending and drives billions more in indirect spending, according to a Numerator report
Already, one-third of Gen Alpha kids — those individuals born since 2010 — are making some purchases on their own, per the AUC research.
And cue the collective sigh from parents of Gen Alpha kids across the land: 95% of parents say that their kids influence their purchasing decisions, including at the grocery store, where three-quarters of kids accompany their parents on shopping trips.
“Gen Alpha’s tech-savvy nature will revolutionize the industry, but their spending power is still years away,” says Jason Katz, senior vice president of strategic planning at AUC. “For now, brands should focus on shopper-centric strategies that cater to parents’ mindsets and help bridge the generational divide.”
The Numerator report, cited by AUC’s research, notes that many of Gen Alpha consumers have access to their own cash, through weekly allowances (an average of $22 per week) that they spend on toys, snacks, food, services, electronics and durables.
“Gen Alpha is highly influenced by online content, often shopping through e-commerce platforms and apps,” Katz says. “They frequently explore products on platforms like YouTube, TikTok and even online gaming environments where they encounter ads and influencer recommendations. Through ‘kid-friendly’ shopping apps or shared family accounts, they are beginning to make supervised purchases, especially in digital spaces like app stores.”
But, he adds, “While online is prominent, in-store purchases are also common. Retailers are increasingly designing child-friendly in-store experiences, with interactive displays and product placements at eye level for kids, especially in the toy and snack aisles.”
The Consumer Decision Making Process Starts Early
For brands and retailers, the key to unlocking Gen Alpha’s influence is through digital. Four out of five Gen Alpha parents say their children under 14 have access to digital devices, with tablets and smartphones leading the way, with 78% and 71% of users, respectively. Two-thirds of Gen Alpha also have access to either a social media profile and/or gaming account (such as Roblox or Nintendo Switch).
According to their parents, these kids learn about new products from YouTube (55%) — more than from their friends and family. Other social media platforms where they learn about new products include TikTok (34%), Facebook (32%) and Instagram (30%).
That makes Gen Alpha an active — if indirect — part of the consumer decision making process. Even before they’re swiping cards or adding to cart, they’re influencing discovery, preference, and conversion through digital environments and co-shopping moments.
All of that screen time is a concern for parents, who worry that it cuts into family bonding time. Brands and retailers that can help solve for this challenge can win hearts and fill carts.
One example? Katz points to Home Depot’s introduction of Virtual Kids Workshops on Roblox, which mimics the retailer’s in-person workshops and promotes DIY skills — while giving parents and kids something to do together.
Six Ways Brands Can Engage Gen Alpha (and Their Parents, Too)
Katz outlines several tactics for success:
- Foster joint screen time. Build shared experiences that resonate across generations.
- Help them unplug. Offer products and ideas that lead to meaningful offline moments.
- Bridge the generational divide. Help parents connect through nostalgic but modernized brand touchpoints.
- Get omnichannel right. With 75% of Gen Alpha kids in the store with their parents, seamless integration is a must.
- Make your digital content count. Focus on creativity, learning, and skill-building — not just entertainment.
- Reimagine relevance. Use gamification and social to bring legacy brands into Gen Alpha culture.
While screen time may seem like a wedge, Katz sees it as a bridge. “This evolving dynamic presents brands with a unique opportunity to redefine family bonding by embracing technology as a bridge rather than a barrier,” he says.
“By aligning with these joint screen activities, brands can tap into modern family moments, offering products that seamlessly integrate into these new, tech-enhanced experiences.”
