Good morning. Winning customers who stay with a brand for decades has become an important strategy for financial institutions and retailers.
For American Express, that means tailoring offerings to affluent, adventure-seeking customers in their mid-20s to mid-40s. In a new Fortune article, my colleague Shawn Tully spoke with American Express CEO Steve Squeri about enhancements to the company’s U.S. Consumer and Business Platinum Cards. Squeri also explains how he’s targeting Gen Z and millennials.
Dining was the fastest-growing travel and entertainment category in Q1 and Q2 this year for American Express. Subsequently, Amex recently introduced a new $400 annual credit for reservations made through Resy—a site acquired by the company in 2019, a year after Squeri became CEO. Amex customers can now get tables at top restaurants, which often reserve spots or prioritize cardholders over others who booked earlier.
Amex card members with Resy credit spend 25% more at U.S. Resy restaurants since the benefit launched. Resy CEO Pablo Rivero told Tully that Resy benefits were introduced to several other Amex cards in 2024.
Increasingly, that cohort includes Gen Z (up to age 27) and millennials (ages 28 to 44), a group Squeri has actively courted. Together, these generations account for 35% of all U.S. consumer spending for Amex, up from 19% in 2019. Gen Z and millennials also gravitate heavily toward acquiring fee-based cards like Gold and Platinum, Tully writes. (You can read the complete article here.)
I recently spoke with Scott Roe, CFO and COO of New York City-based Tapestry, parent of luxury brands Coach and Kate Spade New York. Millennials and Gen Z are increasingly choosing Coach, which drove a strong quarter ending June 28, fueled by these demographics. “By 2030, Gen Z and millennials will make up over 70% of the market,” Roe told me. Tapestry aims to capture their first luxury purchase.
“The long-term value of acquiring customers at this initial entry point is substantial,” he said. “While others speak to millions, we’re talking to billions of potential consumers.”
Gen Z’s spending power is expected to reach $12 trillion in the next five years, according to a global report by NielsenIQ and GfK in collaboration with World Data Lab. As a result, this generation will have a significant influence on the products manufacturers and retailers offer in the near future, according to the report.
Brands that connect with Gen Z and millennials now are positioning themselves for lasting customer loyalty and future growth.
Sheryl Estrada
sheryl.estrada@fortune.com
