Teen Generation Z is being called 'millennials on steroids' - and that could be terrifying for retailers

But now, they're scrambling to understand Generation Z, the teen generation. After all, teens are the future of retail.

"From a spending perspective [teens] are millennials on steroids," Marcie Merriman, executive director of growth strategy and retail innovation at Ernst & Young, said to Business Insider.

A recent study executed by Ernst & Young sought to find out how the two groups of young people differ. The firm polled 1,000 adults and 400 teens.

It's important for companies to recognize the differences between the two generations - and how failing to do so could harm them.

Here are some crucial facts.