How Gen Z Is Reviving U.S. Shopping Malls

Summary

The video explores how U.S. malls are adapting to Gen Z's shopping habits, with younger shoppers, aged 18-34, driving a resurgence in mall visits. Despite the rise of online shopping, Gen Z values the tactile experience of shopping in person, socializing with friends, and showcasing their purchases on social media. Retailers are integrating digital experiences into physical stores to cater to this demographic. While some malls are closing or downsizing, others are shifting to experiential offerings, like entertainment and food, to remain relevant. Overall, malls are evolving to meet the needs of a new, socially savvy generation of shoppers.

Takeaways

• 😀 Gen Z enjoys going to malls, despite being digital natives, because it offers an experience they can share with friends and post about on social media.
• 😀 Nearly 60% of shoppers aged 18-34 frequent malls regularly, showing a rise in mall visits among younger generations.
• 😀 Gen Z values the tactile shopping experience, preferring to touch and try items before purchasing, which online shopping can't fully replicate.
• 😀 Many Gen Z shoppers use a hybrid shopping approach, starting online and then completing purchases at the mall to avoid shipping costs and delays.
• 😀 Malls are evolving, with many shifting from traditional department stores to offering more entertainment, leisure, and social spaces.
• 😀 Gen Z often seeks instant gratification, preferring to shop in-store for quick access to items instead of waiting for online deliveries.
• 😀 Social media heavily influences Gen Z’s shopping choices, with platforms like TikTok showcasing shopping hauls and brand experiences.
• 😀 Gen Z's purchasing power is significant, with an estimated $150 billion in spending power, and they represent about 20% of the U.S. population.
• 😀 Shopping at the mall offers Gen Z opportunities to socialize with friends, with 60% of them visiting malls to hang out with peers.
• 😀 Despite economic challenges like the Great Recession and the pandemic, Gen Z remains budget-conscious and often shops at discount retailers and thrift stores.
• 😀 Malls are becoming more experiential, with added attractions like food, entertainment, and interactive experiences to appeal to younger shoppers.
• 😀 Gen Z's preference for instant access to products is reflected in services like buy online, pick up in-store, which has grown in popularity.

Q & A

Why are U.S. malls making a comeback despite a number of closures?

U.S. malls are experiencing a resurgence due to a surge in younger shoppers, particularly Gen Z. Nearly 60% of shoppers aged 18-to-34 visit malls often or sometimes, compared to just 48% of those aged 35-to-54.

How does Gen Z's shopping behavior compare to previous generations?

Gen Z, born between 1997 and 2012, are spending in physical stores at a similar rate to their grandparents, showing that despite being digital natives, they still value in-person shopping experiences.

What role do malls play in fulfilling online orders for younger shoppers?

Malls have adapted to serve as hubs for fulfilling online orders, allowing shoppers to pick up purchases in person. This offers convenience and the ability to try on items and return them immediately if needed, bypassing shipping delays.

Why do Gen Z shoppers prefer shopping in person at malls?

Gen Z shoppers prefer in-store shopping because it allows them to touch and feel the products they are buying, and they can avoid shipping charges. They also enjoy the instant gratification of immediate purchases.

What entertainment options are malls offering to attract Gen Z?

Malls are moving away from traditional department stores and offering a variety of entertainment options and leisure activities to attract younger shoppers. This includes experiences like food courts, arcades, and other recreational activities.

How does social media influence Gen Z's shopping decisions?

Social media plays a significant role in shaping Gen Z's purchasing decisions. Approximately 85% of Gen Z shoppers report that social media impacts their buying habits, with platforms like TikTok being a key space for showcasing their shopping experiences.

What is the relationship between Gen Z and brands like Abercrombie & Fitch?

Abercrombie & Fitch has successfully adapted to Gen Z's preferences by combining online shopping with in-store experiences. Gen Z shoppers often start their purchases online, saving items in an app, but complete their transactions in-store to try on and experience the products firsthand.

What are the top shopping destinations for Gen Z?

Gen Z frequently shops at department stores like Macy's, Bloomingdale's, and JCPenney, luxury brands such as Gucci and Ralph Lauren, and specialty retailers like Abercrombie, Express, and Apple.

How do malls contribute to Gen Z's social life?

Malls are an important social space for Gen Z. Around 60% of Gen Z shoppers visit malls to socialize or meet up with friends, making it a key part of their social activities, where they can create memories and share experiences.

How are mall owners responding to the changes in shopper behavior?

Mall owners are adapting by incorporating more experiential offerings, such as food and beverage options, and entertainment venues like Dave & Buster's. Some mall owners have even launched targeted ad campaigns, like Simon Property Group's 'Meet Me at the Mall' campaign, to appeal to younger shoppers.