Gen Z Makes Shopping Cool Again

The mall – once a mainstay of youth in the 1980s and 1990s – is enjoying a resurgence. And it’s because of Gen Z shoppers who desire in-person and community stores in addition to online shopping.

Annabelle Saco, 24, of Bloomfield, Michigan, does a mix of shopping online and at the mall — and has seen an increase in shoppers her age in those areas.

“The mall is an experience,” Saco told USA TODAY. “You go there and you see all different kinds of people and you just walk out of your own home.”

Going to the mall also satisfies the need to get something quickly and reduces the time it takes to return an online purchase, he said.

Her sizes tend to vary by brand, so going to the mall and trying on clothes makes it easier to find the right fit.

Most Gen Z shoppers are based in malls

Consumers like Saco are the reason why traffic in malls is increasing.

According to Placer.ai, which uses a panel of tens of millions of devices and machine learning to measure store visits across the country, traffic to large indoor malls was up 4.5% in January and February from last year.

“The resurgence of the mall category is directly related to Gen Z consumers’ desire for social interaction,” Elizabeth Lafontaine, director of research at Placer.ai, told USA TODAY. Retailers and retail brands are using the power of social media to connect directly with Gen Z audiences, Lafontaine said, both physically and digitally, as younger shoppers use social media to share tips and research trends.

Consumers between the ages of 18 and 24 bought 62% of their usual purchases in stores last year, according to Circana. Consumers 25 and older made 52% of purchases in person, Circana said.

Gen Z is expected to spend $12 trillion by 2030, according to NielsenIQ and World Data Lab.

West Coast Gen Z shoppers are looking to the Mall a lot

Gen Z’s share of shopping malls has increased by 57% year-on-year, according to PwC data.

But younger shoppers are returning to the mall, said Ali Furman, PwC’s US consumer markets industry leader.

They are returning to shopping centers that are more focused on retail, with stores and products more often found in department stores located in urban areas than high-end luxury brands, Furman told USA TODAY.

There are also differences across the country, he said. Along the West Coast, Gen Zers go to the malls the most, and California is the leading state with a 62% share of foot traffic, Furman said.

“The simple experience of shopping in person feels novel,” Furman said. “It’s an emotional and social experience they can’t replicate through their screens.”

Furman said his group also believes that Generation Alpha, or those aged 13 and under, are lagging behind Gen Z shoppers in renovating stores.

Adding Gen Z Consumers

In a survey of 3,000 consumers in the US and Canada conducted by Lightspeed Commerce, 75% of 18-24 year olds said that “third spaces” within stores, including cafes, lounges or public areas, influence where they choose to shop. USA TODAY was given an exclusive first look at the survey results.

Gen Z as a generation feels very isolated, so it’s no surprise that they’re putting the blame back on stores and malls, said Dax Dasilva, CEO of Lightspeed Commerce.

“This is because this generation grew up in a time of violence and having a very different reality than most of us,” Dasilva told USA TODAY, adding that many members of Gen Z want to meet friends at a store or mall to combat loneliness.

67 percent of respondents said that stores with social or community features make them feel less alone.

It’s a great opportunity for retailers to go beyond merchandise to create social moments to entice the younger generation “to go to the store and find a reason to stay in the store and be part of their social movement,” he said.

Sellers Come Up With Other Pitches To Entice Buyers

Marketers are listening.

Brooklyn, New York retailer WOODstack is trying to build on consumers’ desire to mix retail with experience. The retailer is working with a chef to open a restaurant attached to its store next month, said Jude Sainjour, WOODstack’s head of consumer and merchandising.

“Opening up this space to double up and raise that idea of ​​creating that community,” he said. “People don’t want to feel too commercial anymore.”

Betty Lin-Fisher is a consumer reporter for USA TODAY. Reach out to him [email protected] or follow him on X, Facebook or Instagram @blinfisher and @blinfisher.bsky.social on Bluesky. Subscribe to our free Daily Money newsletter, which analyzes complex consumer and financial issues. Register here.

This article first appeared in USA TODAY: Gen Z is making malls cool again

Reporting by Betty Lin-Fisher, USA TODAY / USA TODAY

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