Should you tip a retail employee and how much? Buyers discuss.

As consumers continue to grapple with the question of whether and how much to tip their food servers and other service providers, a new trend is emerging: tipping retail employees.

In a study by Lightspeed Commerce, 69% of shoppers say they are willing to tip their retail employees to receive better service while holiday shopping. For Generation Z, this number rises to 89%. Additionally, 48% of shoppers are willing to tip 10% or more for exceptional service.

In data from a follow-up survey of more than 500 U.S. retail employees provided exclusively to USA TODAY, over a quarter of retail employees (27%) “want” to receive tips during the holiday season, with another 11% saying they actively do so “expect” them.

Half of respondents (50%) expect tips in the range of 5 to 10% per customer, while 18% expect tips between 11 and 20%.

46 percent of retail workers said the ability to receive tips had a positive impact on the level of service they provide.

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Since when has tipping been introduced in retail?

“Tipping in hospitality and at the counter has been a hot topic since the pandemic and the trend has started to reach retail as well,” said Dax Dasilva, CEO of Lightspeed, a point-of-sale commerce platform that serves a variety of sectors serves retail and hospitality customers.

The company surveyed more than 2,500 consumers in the U.S. and Canada about their attitudes toward holiday shopping and tipping — and was surprised by the high willingness to tip retail employees, Dasilva told USA TODAY.

Generation Z is more willing to tip, indicating a generational shift in attitudes toward the practice, he said.

“Across generations, there is a willingness to tip that goes above and beyond,” Dasilva said.

41 percent of Gen Z respondents in the survey also said they would be more interested and willing to subscribe to a retailer’s VIP service, which offers perks such as skipping lines, early access and personalized shopping experiences, he said.

“A decade ago there was no tipping in retail, but now it has become much more common and the willingness is there when the service is there,” Dasilva said.

Despite inflation and concerns about higher prices during the holidays, Dasilva said she believes some people are still willing to tip their retail employees.

“Despite financial constraints, people have compassion for people who provide retail and hospitality services in our economy and are willing to compensate them,” he said.

How much do people tip in retail?

Lightspeed offers its point-of-sale software to both specialty retailers, who may have higher quality products and specialized customer service, and mall retailers, who have different price points. Dasilva said shopper tips have increased across all facets of retail.

Dasilva said tips are primarily given at checkout during the checkout process, and retailers can choose to add a “tip” amount for shoppers to add to their transaction.

Similar to how tip suggestions appear on screens at restaurant checkouts, Lightspeed and other companies that offer the service can include an optional tip screen for retail customers, he said. Retailers can enable or disable this feature, Dasilva said. Some may have policies that they don’t want shoppers to have the opportunity to tip workers, he said.

He said tips to retail employees would be made primarily through electronic payments rather than cash, he said.

The amount retail employees in the Lightspeed survey expected to tip — 50% said they expected to tip between 5 and 10% — surprised Dasilva.

“In a restaurant … under 15 or 20%, (workers) aren’t really happy,” he said.

Tipping in retail is “a little different and feels a little like uncharted territory,” Dasilva said, “but there is a willingness to give a little more.”

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What does an etiquette expert say about tipping retail employees?

At least one etiquette expert disagrees with the growing trend.

Tipping a retail employee is not necessary, not required, and should not be given, said Elaine Swann, a lifestyle and etiquette coach in Carlsbad, California, and founder of the Swann School of Protocol.

“I don’t think we should go down that path,” Swann told USA TODAY. “I believe that tipping should continue to be reserved for service industry professionals, and that would include everyone from your server who delivers food to your table while you’re seated to delivery drivers and taxis and Lyft and so on .”

When asked whether retail workers like coffee baristas could be considered service industry workers, Swann said she doesn’t believe coffee baristas or employees for takeout orders should be tipped.

“I encourage people to resist societal pressure to tip at the bar,” she said. “If you’re sitting down and someone serves you your food, here in the United States you have to tip because that person makes their living off the tips you give. If you stand and receive your food, there is no tip required.”

Should you tip a retail employee and how much? Buyers discuss.

ByAmelia Journalton

By Amelia Journalton

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