Gen Z shoppers are emerging as a driving force behind a revival of American shopping malls, with younger consumers showing a clear preference for in-person retail over online purchases, according to industry data and retail executives.
Global retail spending by Gen Z is projected to exceed $12 trillion by 2030, with growth outpacing that of every other generation, according to NielsenIQ data. Circana found that consumers ages 18 to 24 completed 62% of their general merchandise purchases in physical stores last year, compared with 52% for shoppers ages 25 and older, as reported by FOX Business.
To capture that audience, mall operators are reshaping properties with features tailored to younger shoppers, including dressing rooms designed for social media and amenities such as indoor rock climbing walls.
Macerich Executive Vice President of Asset Management Cory Scott said experiences are central to how Gen Z approaches shopping.
“They value experiences almost more than they value material things. So it’s as much about the journey as the shopping and the things that they’re taking home with them,” Scott said, per Fox.
Some young shoppers told the news outlet that malls provide a form of social interaction that online retail cannot match.
“We grew up during like quarantine… Getting out and hanging out with people was a very big thing we didn’t appreciate during that time… As we grow older, we see that we need to be doing these things and it’s kind of fun,” one shopper said, per Fox.
The trend is unfolding alongside broader strength in consumer spending. U.S. retail sales increased 0.5% in April from the prior month and rose 4.9% from a year earlier, according to Commerce Department figures released Thursday. The data suggest households continue to spend despite pressure from higher interest rates and ongoing economic uncertainty.
