In this graduate paper, it is shown how Generation Y or millennials, along with certain factors, make a decision about choosing a store, and the example of a clothing store is used here. Generation Y is described more detailed in order to better understand their actions, thoughts and, finally, the way they shop in clothing stores. In order to interpret this generation as best and accurately as possible, a survey questionnaire was conducted on the topic Factors in choosing a clothing store and the millennial generation. The goal of the conducted survey is to find out how millennials think before, during and after shopping in clothing stores and what they think about online shopping, which is becoming more and more common nowadays. For this thesis, data was collected from professional literature, as well as data available on the Internet. The conclusion of this paper led to results that say that millennials increasingly prefer online shopping, but they are certainly well informed about the products they want to buy before each purchase. This generation is aware that all products are becoming more expensive every day, but it doesn’t affect their purchase behavior and spending. However, for a more detailed elaboration and results of this topic, it is necessary to analyze and conduct a survey on the territory of the entire Republic Croatia.