Lindsey Hyams, a 23-year-old from Marlboro, NJ, is a prime example of the changing retail landscape. Despite her affinity for online shopping, she often prefers to make her purchases in person at a mall. She likes to skip the wait for online deliveries and the hassle of returning items. Hyams is not alone in her preference. According to a survey by the International Council of Shopping Centers (ICSC), nearly 63% of Gen Z respondents plan to make holiday purchases at physical stores, while only about 50% will shop on retailers’ websites and apps.
Malls have had to adapt to this shift in shopping behavior by adding new brands, entertainment options, and experiences to attract younger customers. For example, Princess Polly, an online-only retailer, has opened its first stores in the US to cater to its Gen Z customers. The stores feature a sleek design, bright lighting, and mirrors to encourage shoppers to take selfies.
Other retailers, such as Bath & Body Works, have introduced “scent bars” where customers can test fragrances before making a purchase. Abercrombie & Fitch’s Hollister brand has hosted events, such as concerts and autograph signings, at its stores to appeal to Gen Z.
Gen Z’s preference for in-person shopping is not just about convenience; it’s also about social interaction and seeking real-world experiences. According to Roberta Katz, a Stanford University senior research scholar, Gen Zers value face-to-face communication and prefer to interact with others in person. TMall owners are taking note of these preferences and investing in marketing campaigns and experiential retail to attract Gen Z shoppers. For example, Simon Property Group launched a campaign called “Meet Me @the Mall,” which features young adults dancing and roller-skating at the mall.
To reach Gen Z, retailers must also ensure their online and in-store experiences are seamlessly integrated. According to Scott Lipesky, COO of Abercrombie & Fitch, “If the digital and physical world work well together, it’s a beautiful thing.” Some retailers, like Princess Polly, are achieving this through apps that allow customers to save and track items, while others, like Bath & Body Works, are introducing “scent bars” to let customers experience products before they buy.
For Hyams, the mall is more than just a shopping destination; it’s an experience. She likes to make a day of it, shopping with her mom or aunt, grabbing a cup of coffee, trying out a perfume, and having a meal. “It feels like stepping into a small city,” she said. “You’re getting into the parking lot. You walk into the mall and you’re feeling all these little experiences and you’re meeting new people.” As malls continue to evolve, it’s clear that the future of retail will be shaped by the preferences and behaviors of Gen Z.