New survey data from Lightspeed Commerce challenges the longstanding retail assumption that January and February represent a post-holiday spending slowdown, revealing a stark generational divide in early-year shopping behaviour that has significant implications for how retailers should approach the first quarter.
The commerce platform’s survey of 1,500 North American adults found that 74% of consumers are just as likely or more likely to shop in January and February compared to other times of year. But the headline figure masks a dramatic age split: 49% of shoppers aged 18-24 say they’re more likely to shop during these months, versus just 11% of consumers 55 and older. Perhaps more significantly, 94% of Gen Z maintains or increases shopping activity in Q1, with no Gen Z respondents saying they’re “much less likely” to shop—compared to 9% of older consumers who significantly pull back spending.
Among 18-24 year olds, 61% prioritize health, fitness, or wellness purchases in January—more than double the 28% overall average. Another 52% focus on wardrobe refreshes, compared to 37% across all age groups. Nearly half—48%—made a New Year’s resolution specifically about how they shop, with 44% aiming to spend more intentionally and 38% focusing purchases on items that support other resolutions like fitness or skill-building.
“Whether taking up a new hobby, enrolling in fitness class, or looking to undergo a closet refresh, for many, the new year is an opportunity to start fresh in more ways than one,” says John Shapiro, Chief Product and Technology Officer at Lightspeed. “When it comes to Gen Zers in particular, this ‘refresh period’ includes new purchases that can be used to support a hobby or fitness goal.”
The findings suggest retailers still staffing and merchandising for a January lull may be missing substantial revenue, particularly in categories tied to what Lightspeed calls “reset” spending. But capitalising on the trend requires more than just stocking yoga mats and workout gear—it demands a fundamental rethinking of how retailers approach inventory, marketing, and customer relationships in the first quarter.
Shapiro says successful retailers are already tailoring their physical and digital storefronts to support specific goals, whether that’s “special deals for workout clothing and shoes to support fitness goals, or advertising craft or stationery materials needed to dive into new hobbies.” But the infrastructure behind those offerings matters just as much. “Ensuring real-time inventory updates, offering new year discounts, and easy price comparisons in-store and online are just a few of the additional ways retailers can look to capture demand from Gen Z shoppers,” he notes.
The challenge becomes more complex when considering that 70% of consumers 55 and older are also maintaining or increasing their January spending—they’re just doing it differently. Shapiro explains that while the majority of consumers across both age groups plan to maintain or increase spending, “understanding the intention behind these figures for each group can help retailers decide how to market to them effectively and be able to meet demand effectively with inventory.”
For Gen Z, who “very much sees Q1 as a reset period and is aligning their spending in turn,” retailers should be “increasing anticipated ‘hot’ items related not only to health and wellness goals, but popular hobbies and self-care as well,” according to Shapiro. Marketing, meanwhile, “should lean into intention, spotlighting curated products tied to self-improvement, lifestyle upgrades, and personal goals.”
Older consumers present a different opportunity. “They still want to ride the self-improvement wave, just in a slightly less purchase-powered way,” Shapiro says. “To meet these consumers, brands should continue to focus on more tried-and-true traditional self-improvement related products, such as workout clothing and accessories. Marketing messaging should focus on practicality and value.”
The segmentation strategy needs to be subtle. “While the overarching messaging is the same for Gen Z and 55+ aged consumers, there is a slight nuance in reaching them effectively that retailers should consider,” Shapiro adds.
That nuance extends to how retailers think about discounting and promotions. The data reveals what appears to be a paradox: Gen Z shoppers are increasing purchase frequency while simultaneously prioritising intentional, values-based consumption. For retailers accustomed to leading with price in January, this creates a strategic tension.
“While younger consumers are shopping more in the early months of the year, intentional, purpose-driven consumption continues to remain a top spending priority,” Shapiro explains. “For Gen Z shoppers, new purchases made during the ‘refresh period’ can be done to support a new goal or hobby and still be made with the brands that they choose to support and ones that align with their personal values or identity.”
Price still matters—Shapiro acknowledges that “price and quality remain top priorities for any shopper—and further amplified during the traditional discount-driven period in January”—but he argues “this does not detract from the intentional, values-based spending that consumers are increasingly adopting.”
The implication is that retailers can’t rely solely on discounting to drive Q1 traffic. “Continuing to drive both business growth and brand loyalty will critically rely on their ability to remain transparent and authentic with their shoppers, while offering more personalised experiences for both new and existing customers,” according to Shapiro. He points to technology as critical in making “everything from product data, labour standards, and sustainability metrics more easily accessible to consumers—whether they are shopping in-store or online.”
That emphasis on technology extends beyond customer-facing transparency to core retail operations. Shapiro emphasises that capturing January’s reset demand means “leveraging the latest and greatest technology built to streamline inventory management, automate point of sale (POS), and bolster product marketing.”
The operational advantages compound quickly. “By collectively leveraging these tools, retailers gain unmatched visibility in everything from inventory, performance metrics, sales forecasting, and more,” he says. “With these insights, retailers can more effectively respond to rapid changes in consumer demand, streamline manual processes, and reduce human error in the process.”
For retailers wondering whether this represents a short-term blip or a longer-term shift, Lightspeed’s data suggests the latter. The reset spending pattern isn’t confined to January—it extends through the first quarter and expands beyond the obvious categories of fitness gear and new wardrobes.
“After the holiday season comes to a close, it’s important that retailers continue to meet their customers where they are,” Shapiro says. “Our data suggests that this isn’t just a temporary January spike; it’s a mindset and behavioural shift for all of Q1. As younger consumers particularly set out to be the best versions of themselves in 2026, this trend of reset shopping is extending beyond gyms and new outfits into categories that support routines, learning, and lifestyle upgrades.”
The breadth of categories affected creates opportunities for retailers who might not traditionally think of themselves as benefiting from New Year’s resolution spending. “As consumers opt to make purchases across categories tied to self-improvement goals like wellness, home organisation, skill-building, and everyday quality-of-life, this moment in time provides an opportunity for retailers to establish themselves as long-term partners in this journey,” Shapiro notes.
His conclusion is pointed: “The retailers that will win in Q1 are those that treat early-year shopping as a continuation of consumer relationship building, not a post-holiday cooldown. January may start the reset, but Q1 is where consumers decide which habits—and which brands—earn their loyalty.”
For an industry that’s spent decades treating January and February as necessary evils between holiday peaks, the message is clear: the playbook needs rewriting, and the retailers who adjust fastest stand to capture not just stronger Q1 numbers, but customer relationships that extend well beyond reset season—particularly as Gen Z’s share of consumer spending continues to grow.
Dustin Fuhs is the founder and Editor-in-Chief of 6ix Retail, Toronto’s premier source for retail and hospitality industry news. As the former Editor-in-Chief of Retail Insider, Canada’s most-read retail trade publication, Dustin brings over two decades of expertise spanning retail, marketing, entertainment and hospitality sectors. His experience includes leadership roles with industry giants such as The Walt Disney Company, The Hockey Hall of Fame, Starbucks and Blockbuster.
Recognized as a RETHINK Retail Top Retail Expert in 2024 and 2025, Dustin delivers insider perspectives on Toronto’s evolving retail landscape, from emerging brands to established players reshaping the city’s commercial districts.