As consumers ponder the practice of tipping their food service staff and other service providers, a new trend is on the rise: tipping retail employees.

A recent study conducted by Lightspeed Commerce revealed that 69% of shoppers are open to tipping retail staff to receive enhanced service while shopping during the holiday season. This figure climbs to 89% among Gen Z shoppers. Furthermore, 48% of shoppers express readiness to tip 10% or more if they receive exceptional service.

Insights from a supplementary survey, conducted with over 500 retail employees in the U.S. and shared exclusively with YSL News, indicated that more than a quarter of retail workers (27%) wish to receive tips during the holiday period, while an additional 11% have an expectation of them.

Half of these respondents (50%) foresee tips ranging from 5% to 10% from each customer, and 18% expect to receive between 11% and 20%.

Additionally, 46% of retail workers noted that the potential for tips positively impacts the quality of service they provide.

When Did Tipping in Retail Become Common?

The discussion around tipping in the hospitality and quick-service sectors has been prominent since the pandemic, and now this trend is seeping into retail, according to Dax Dasilva, CEO of Lightspeed, which provides point-of-sale solutions to various retail and hospitality sectors.

The company surveyed over 2,500 consumers across the U.S. and Canada about their thoughts on holiday shopping and tipping, finding a surprising openness to tipping retail workers, as noted by Dasilva to YSL News.

Notably, Gen Z shoppers showed a greater readiness to tip, suggesting a shift in perspective among younger generations.

“There’s a generational shift that shows people are more inclined to tip for service that surpasses expectations,” Dasilva explained.

Moreover, 41% of Gen Z participants indicated they would be interested in subscribing to a retailer’s VIP service that includes perks such as lines skipping, early access, and tailored shopping experiences, he added.

“A decade ago, tipping wasn’t heard of in retail, but it’s now becoming increasingly common, driven by service quality,” Dasilva remarked.

Despite inflation and the challenges of rising prices during the holiday season, Dasilva thinks many people remain willing to tip retail workers.

“Even with financial strains, people show empathy towards those who provide services in retail and hospitality sectors and are likely to reward them,” he noted.

What Are the Trends in Tipping Amounts for Retail Workers?

Lightspeed supplies point-of-sale solutions to specialized retailers, which might offer unique products and personalized services, as well as to mall retailers with diverse price ranges. Dasilva mentioned that tipping rates among customers are rising across all retail sectors.

Tipping typically occurs at the register during the checkout experience, where retailers may choose to offer a feature that allows customers to add a “tip” amount to their purchases.

Similar to how restaurants include suggested tips at the checkout, Lightspeed and other companies providing this feature can add an optional tipping screen for retail transactions. Retailers can either include or disable this feature, as some may prefer not to offer tipping options to customers, Dasilva explained.

Tipping among retail workers appears to primarily involve electronic transactions rather than cash, he noted.

The amount that retail workers anticipate from tips in the Lightspeed survey—50% indicating expectations of 5% to 10%—came as a surprise to Dasilva.

“In restaurants, anything below 15% or 20% isn’t generally well-received by workers,” he pointed out.

Retail tipping feels “a bit unfamiliar and uncertain,” Dasilva added, “but there’s a growing willingness to contribute a little extra.”

What Does an Etiquette Expert Think About Tipping Retail Workers?

One etiquette expert has reservations about the rising trend of tipping retail employees.

Elaine Swann, a lifestyle and etiquette coach based in Carlsbad, California, argues that tipping retail staff is unnecessary and should be avoided.

“I don’t think we should head down this path,” Swann stated to YSL News. “Tipping should be reserved for service industry professionals, such as servers bringing food to your table, delivery drivers, and taxi or rideshare drivers.”

When questioned about whether baristas and takeout staff should be tipped, Swann expressed her belief that those workers shouldn’t receive tips either.

“I encourage people to resist societal pressures to tip when checking out,” she said.

In the United States, it’s customary to leave a tip when you’re seated and someone brings you your meal, as many servers rely on tips for their income. However, if you’re picking up your meal while standing, tipping is generally not expected.

Swann mentioned that if the service stands out or if your order is particularly large, adding a tip could be a thoughtful gesture.

Swann emphasized that retail employees are compensated by their employers and should be rewarded with bonuses or perks from their companies, rather than relying on customers to tip. She pointed out that when retail businesses encourage tipping over providing commissions to their workers, they are unfairly transferring that expectation onto consumers.

“Retailers should enforce clear guidelines that instruct customers not to tip our staff. We take care of them ourselves,” Swann advised.