Shopping malls — once the mainstay of teens during the 1980s and 1990s — are enjoying a resurgence. And it’s thanks to Gen Z shoppers who are craving in-person and social outlets over online shopping conveniences.
Annabelle Saco, 24, of Bloomfield, Michigan, does a combination of shopping online and at the mall — and she’s seen an increase of shoppers her age in those spaces.
“The mall is an experience,” Saco told USA TODAY. “You go there and you see all different kinds of people and its just getting out of your isolation in your home.”
Going to the mall also satisfies the need to get something right away and reduces the amount of time returning online purchases, she said.
Her size often varies depending on the brand, so going to the mall and trying on clothes makes it easier to find the right fit.
More Gen Z Shoppers Are at Malls
Shoppers like Saco are a key reason why mall traffic is on the rise.
According to Placer.ai, which uses a panel of tens of millions of devices and machine learning to make estimations for in-store visits across the country, traffic to indoor malls was up 4.5% in January and February from the previous year.
“The resurgence of the mall category directly correlates with Gen Z shoppers’ desire for community and in-person connection,” Elizabeth Lafontaine, director of research at Placer.ai, told USA TODAY. Mall-based retailers and brands are harnessing the power of social media to connect directly with Gen Z audiences, Lafontaine said, both physically in-stores and digitally, as younger shoppers use social media to share tips and for trend research.
Shoppers between the ages of 18 and 24 bought 62% of their total general merchandise purchases in stores last year, according to Circana. Shoppers ages 25 and older made 52% of their 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 Head to Mall the Most
Gen Z’s share of foot traffic at malls increased 57% year over year, according to PwC data.
But the young shoppers are selectively going back to the mall, said Ali Furman, PwC U.S. consumer markets industry leader.
They are returning to value-oriented shopping malls, which have stores and brands that are often also located in suburban strip malls rather than high-end luxury brands, Furman told USA TODAY.
There’s also variances across the country, she said. Along the West Coast, Gen Zers are frequenting malls more, with California being the top state with a 62% gain in foot traffic, Furman said.
“The simple experience of shopping in person feels novel,” Furman said. “It is a sensory and social experience they can’t replicate through their screens.”
Furman said her team also believes that Generation Alpha, or those who are 13 years old and younger, are not far behind the Gen Z shoppers in spurring a return to the mall.
Extras Entice Gen Z Shoppers
In a survey of 3,000 shoppers in the U.S. and Canada by Lightspeed Commerce, 75% of 18–24-year-olds say “third spaces” inside stores, which include cafés, lounges or social 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 not a surprise they are leading the charge back to in-person stores and malls, said Dax Dasilva, CEO of Lightspeed Commerce.
“This stems from this generation growing up a lot during the pandemic and having a very different reality than most of us,” Dasilva told USA TODAY, saying that many members of Gen Z want to meet up with friends at a store or mall to combat the loneliness.
Sixty seven percent of respondents said stores with social or community features make them feel less isolated.
It’s a good opportunity for retailers to go beyond the 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 have it be a part of their social dynamic,” he said.
Retailers Bringing in Other Spaces to Entice Shoppers
Retailers are listening.
Brooklyn, New York retailer WOODstack is trying to build on shoppers’ desire to mix retail with an experience. The retailer is partnering with a chef to open a restaurant attached to its retail shop next month, said Jude Sainjour, WOODstack’s head buyer and divisional merchandise manager.
“Opening this space is us just doubling down and elevating that concept of creating that community,” he said. “People don’t want to feel super transactional anymore.”
Betty Lin-Fisher is a consumer reporter for USA TODAY. Reach her at [email protected] or follow her on X, Facebook or Instagram @blinfisher and @blinfisher.bsky.social on Bluesky. Sign up for our free The Daily Money newsletter, which breaks down complex consumer and financial news. Subscribe here.
This article originally appeared on USA TODAY: Gen Z is making shopping malls cool again
Reporting by Betty Lin-Fisher, USA TODAY / USA TODAY
USA TODAY Network via Reuters Connect
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