While they may have been struggling in recent years, a new trend shows that shopping malls could be on the rebound thanks to America’s youngest shoppers.
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According to a new survey from the International Council of Shopping Centers, Gen Z consumers shop in stores almost as much as their baby boomer grandparents, despite being raised in the digital age.
While online shopping has grown in popularity in recent years, the survey found that 63% of Gen Z shoppers plan on making their holiday purchases in-store this year.
Additionally, only 50% said they would make a purchase on a retailer’s website and app during the season, a figure that’s lower than any other generation except baby boomers.
As for why Gen Z is opting to buy in person, the survey highlighted the social aspect of heading to a store to shop, giving consumers the chance to see friends and the products they are buying firsthand.
“It’s actually more convenient for me to just go to the store, try on the item,” 23-year-old Lindsey Hyams shared with CNBC when discussing shopping in person. “If it doesn’t fit, I can just return it right then and there. You know, instead of having to go to UPS, send it back, waiting another five to seven business days.”
Now, shopping centers and malls have begun marketing towards the younger generation, as millennials and Gen Xers opt to buy online out of convenience.
Kevin McCrain, the CEO of Brookfield Properties, a major mall owner, shared that Gen Z is looking for unique experiences that they can share in the real world and through social media.
“They want to show their friends, ‘Oh, I just bought this,’ or ‘I just ate this,’ and they’re Instagramming their food or their shopping experience, or where they’re standing and sitting as a group together,” McCrain told CNBC. “And the best place to do that is, is the mall.”
Mall owner Simon Property Group is also working to bring people back to the mall, specifically Gen Z, through its “Meet Me @the mall” ads that have been running online. The ads are trying to bring back 80s nostalgia with young adults, attempting to make them as appealing as they once were.
The reports of a renewed interest in in-person shopping come at a time when many point to safety as a reason for not shopping in person.
A recent poll from the retail mobile communications platform Theatro highlighted that 78% of shoppers are afraid for their safety and security while shopping in person this holiday season. A majority of shoppers (60%) agreed that proactive measures to keep stores safe during the 2024 holidays should be implemented by retailers.
The reports come at a time when Americans are getting ready to shell out serious amounts of money on their loved ones.
The National Retail Federation estimates that consumer spending will rise this holiday season compared to last, with shoppers spending $902 per person. A report from the consultant company Deloitte estimates that consumers will spend an average of $1,778, up 8% from 2023.
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