Gen Z’s Package Revolution: Smart Solutions for Campus Delivery in 2025

Generation Z is defined as digital natives born between 1997 and 2012. They are characterized by constant smartphone connectivity and a unique shopping paradox: they experience brands digitally while showing a surprising affinity for in-person mall shopping.

With purchasing power of $450 billion in the US, Gen Z are heavyweight consumers.¹ By 2030, Zoomers are poised to become a formidable economic force, with projections indicating they will comprise 17% of total consumer spending in the United States. This represents a substantial 12 percentage point jump from their current economic footprint. Let’s examine how this generation’s retail habits are impacting college housing and how colleges and universities can prepare for peak seasons.

Generation Z is Shaking Up the Retail Landscape

Sustainability is a High Priority

Today’s students prioritize sustainability and often choose the “circular” market; eBay reports that 36% of Gen Z second-hand purchases are specifically out of concern for sustainability and the environment. Sustainable purchases fueled social media frenzies for Trader Joe’s reusable totes, Stanley Cups and Owala water bottles, and more. Thrift stores such as Buffalo Exchange and Plato’s Closet meet students’ affordability and sustainability needs.²

In 2023, one-third of Gen Z consumers abandoned brands that failed to meet their stringent social responsibility and environmental sustainability standards, and nearly half (49%) prioritized sustainable products, according to a recent Afterpay study.³ According to the National Retail Federation, college students would also consider buying secondhand textbooks, clothing, electronics, and school supplies.⁴

Gen Z Seeks Value and Sales

Zoomers’ quest for value is accompanied by its reliance on sales, coupons, and promotions. 74% of shoppers report that promotions are better this year than last.⁵ And, according to a November 2024 Harris poll, “Nearly 69 percent of Gen Z and Millennials trust AI to help them find better deals, and 57 percent would even use it to craft holiday cards.”⁶

What Students Are Buying: A Retail Snapshot

Back-to-college spending hit $87 billion in 2024, with an average of $1,400 per US household.⁷ Electronics are the highest ticket item, with sales expected to hit $23 billion this year. In recent years, spending in this category has experienced unprecedented growth, surging to nearly twice its levels from the 2010s and reaching record-breaking heights over the past two years.

College consumers spend more in virtually every category, including clothing, supplies, and health and wellness. As of August this year, college students had yet to purchase essentials such as school supplies, clothing, electronics, and personal care items.

The Seasonality of College Shopping

College shopping surges 1-2 weeks before school starts, with 48% of students picking up their last item during this timeframe. Walmart is a key destination for college-bound consumers, with data demonstrating in August 2023 that Walmart’s market share was 94% higher than the nationwide average!⁸

College students’ spending also extends beyond back to school necessities. A recent Harris Poll revealed that, despite anxiety over finances, students spend the most among all generations during the holiday season, spending an average of $1,638 per student.⁹

Implications for College Housing Providers

Students wait until the last minute to shop for back-to-school necessities, translating into a surge of packages immediately before classes resume. Further, the need to manage larger packages increases as students order everything from bedding to lighting to mattresses to be delivered to their new homes.

In a recent Spaces4Learning survey of college and university operations professionals, staffing emerged as the primary challenge in mail and package management.¹⁰ 36% of respondents identified “too few staff” as their most significant mailroom obstacle. Interestingly, opinions diverged when asked about future staffing needs to handle increasing parcel volumes: while 26% anticipated adding personnel, 72% did not foresee additional staff.

Holiday shopping might also overwhelm staff, as Gen Z intends to spend more than other generations and needs packages before departing for hometown or other destination celebrations.

Better Student Package Management with Smart Lockers

Smart lockers are a cost-effective method for helping student housing providers combat increases in student package deliveries. Employing smart locker solutions can reduce package management labor resources by as much as a third.¹¹

Parcel Pending by Quadient lockers integrate advanced hardware with Quadient’s Web Tracking System (WTS) or other asset management platforms to create a comprehensive solution for tracking and managing goods and assets across campus throughout the academic year. This innovative solution represents a breakthrough in campus logistics, offering unparalleled visibility, security, and operational efficiency. With Parcel Pending, institutions can gain:

• Complete Visibility Tracking: Smart lockers can monitor many campus goods and assets (e.g., packages, textbooks, technology rentals, and more), capturing every step from initial campus receipt to final delivery. This end-to-end tracking ensures complete transparency and accountability throughout the distribution process.
• Advanced Security Measures: Each solution features a sophisticated 24/7 cloud-based video surveillance system and automatic signature and photo capture to ensure maximum safety and verification of all package exchanges. This multi-layered security approach protects both the institution and its community.
• Operational Streamlining: Smart lockers dramatically simplify logistics processes by consolidating package management into a unified platform. The integrated system reduces administrative burden, minimizes errors, and creates a more efficient workflow for campus management and users.

Parcel Pending: Delivering MORE for Students, Staff, and Faculty

At the University of Houston, a sprawling campus serving more than 47,000 students, implementing Parcel Pending smart lockers has revolutionized package management. The university’s strategic decision to introduce these self-service lockers was driven by three primary objectives: enhancing operational efficiency, minimizing staff workload, and elevating the overall experience for residents.

Esmeralda Valdez, the Executive Director of University Services, affirms the success of this initiative, noting that the lockers have optimized resource utilization to an impressive 94% efficiency. Further, with 24/7 self-service package collection, the university noted that 33% of packages are retrieved outside business hours.¹²

Smart lockers also work as a safe, secure, and efficient package management system for off-campus housing. Lindsey Bright, Vice President of Operations at Subtext, which owns and operates student housing in St. Louis, explains her solution this way: “We’ve moved to a hybrid approach of a moderate number of lockers coupled with a large package room, all managed through one software to maintain the same convenience level for our residents. We expect to maintain our design for years to come and have added standard refrigerators in our package rooms to accommodate perishable deliveries.”¹³

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As campuses adapt to the evolving needs of Gen Z consumers, package management solutions like smart lockers represent a critical innovation in student housing logistics. By leveraging advanced tracking technologies and integrated systems, smart lockers can help universities and student housing providers efficiently address the challenges of increasing package volumes, changing student shopping behaviors, and the demand for convenient, secure delivery services. The future of campus package management lies in embracing technology that enhances operational efficiency, security, and the student experience.

Ready to learn more about how our smart locker solutions can work for you? Speak with a Parcel Pending representative today.

Sources:

1. Sukhraj, Ramona. Gen Z Buying Habits: What Gen Z Spends On & Why Marketers Need to Care. blog.hubspot.com. May 20, 2024. https://blog.hubspot.com/marketing/what-gen-z-spends-money-on
2. Margalit, Lila. The Consumer Habits of College Students. www.placer.ai. October 3, 2023. https://www.placer.ai/blog/the-consumer-habits-of-college-students
3. Afterpay. Beyond the Crocs & TikToks: How Gen Z Are Shopping (U.S. Edition). afterpay-newsroom.yourcreative.com.au. n.d. https://afterpay-newsroom.yourcreative.com.au/wp-content/uploads/2022/11/Afterpay-Gen-Z-US-Report-2022.pdf
4. Caraballo, Aaliyah. What to look out for this back-to-class season. nrf.com. August 6, 2024. https://nrf.com/blog/what-look-out-back-class-season
5. Cullen, Katherine. 2024 back-to-school shopping update. nrf.com. August 19, 2024. https://nrf.com/blog/2024-back-school-shopping-update
6. Zaczkiewicz, Arthur. Gen Z Leads Holiday Spending Surge, Doubling Down on Meaningful Gifting Despite Debt Anxiety. wwd.com. December 4, 2024. https://wwd.com/business-news/business-features/gen-z-leads-spending-surge-doubling-down-on-meaningful-gifting-despite-debt-anxiety-1236747383/
7. Tighe, D. Back-to-college – statistics & facts. www.statista.com. September 6, 2024. https://www.statista.com/topics/2144/back-to-college-statistics-and-facts/
8. Margalit, Lila. The Consumer Habits of College Students. www.placer.ai. October 3, 2023. https://www.placer.ai/blog/the-consumer-habits-of-college-students
9. Zaczkiewicz, Arthur. Gen Z Leads Holiday Spending Surge, Doubling Down on Meaningful Gifting Despite Debt Anxiety. wwd.com. December 4, 2024. https://wwd.com/business-news/business-features/gen-z-leads-spending-surge-doubling-down-on-meaningful-gifting-despite-debt-anxiety-1236747383/
10. Spaces4Learning. Campus Mailroom Operatinons: A Nexus of the Student Experience. spaces4learning.com. n.d. https://spaces4learning.com/Research/2024/04/Campus-Mailroom-Operations.aspx
11. Based on client data; your results may vary.
12. Parcel Pending. University of Houston. www.parcelpending.com. April 7, 2022. https://www.parcelpending.com/en-us/case-studies/university-of-houston/
13. Anderson, Bendix. Multifamily Properties Face Flood of Packages. www.multifamilyexecutive.com. November 8, 2024. https://www.multifamilyexecutive.com/property-management/apartment-trends/multifamily-properties-face-flood-of-packages_o