The purpose of GZIP: This causes pages to be compressed before being transmitted from server to browser, making the transmitted data smaller, thus speeding delivery.
However, if PHP is already configured on the server to have "output_buffering" turned on (ie: set to "on" or "1"), then it's already doing this compression before transmission, and if you turn on GZip compression in Zen Cart, you're potentially forcing it to be done twice, which is redundant and actually can slow things down.
GZip is most likely not the issue for your current server.
It's most likely a poorly-tuned MySQL engine which doesn't have enough RAM allocated to it and therefore cannot do enough caching or query buffering to offer speedy performance with Zen Cart's required queries.
(Before someone goes off on a tirade of saying Zen Cart uses too many queries, don't. v1.4.0 currently in development has dropped queries drastically, which will certainly help in cases such as this. But that's future.)
In short, add lotsa ram and allocate it strategically so that the server has sufficient resources to run efficiently.
If this is a server you have no control over, try a different host which already manages the server with optimization in mind.
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