The impact of phygital reality on generation Z is the focus of this article. Phygital is understood as a system of interaction in the new world when digital space penetrates the physical and integrates with a person. For researchers, as well as for representatives of business, education, and media culture, the question of how phygital reality practices influence formation of the values of the most active digital audience - generation Z is becoming more and more relevant. Issues of value system are commonly seen among a typical representative of the generation Z that lives in St. Petersburg. The change in the value priorities of modern society is investigated. An analysis of the results made it possible to obtain the image of generation Z from generation Y viewpoint, to study the hierarchy of values of generation Z and to draw inter-generational analogies. It is shown that some features attributed to this generation are not supported by data. The results of the study of the value system of a typical representative of generation Z in St Petersburg are in some contradiction with the value system of generation Z in other countries. The authors believe that generation Z studies present valuable material for developing governing solutions in terms of desired goals and actions to achieve a developed digital society.