The economic realities of Gen Z are spreading rapidly.
The group, born between 1997 and 2012, are increasingly worried about their financial situation and are documenting their lives to engage with others.
The 1980s aren’t calling out to Generation X.
In the 1980s and 1990s, shopping malls, once a center for teenagers, are experiencing a resurgence. That’s thanks to Gen Z shoppers, who crave in-person social shopping over the convenience of online shopping.
Annabelle Saco, 24, of Bloomfield, Michigan, does a mix of online and mall shopping and is seeing more shoppers her age in these spaces.
“The mall is an experience,” Sako told USA TODAY. “When you go there, you can meet all kinds of people and get away from the loneliness at home.”
Going to the mall also satisfies the desire to get something quickly and reduces the time it takes to return online purchases, she said.
Sizes often vary depending on the brand, so going to the shopping mall and trying on clothes will help you find the perfect size.
More Gen Z shoppers are using shopping malls
Shoppers like Saco are the main reason mall traffic is increasing.
According to Placer.ai, which uses tens of millions of devices and machine learning panels to estimate store visits across the country, traffic to indoor malls increased 4.6% year over year in January and February.
“The resurgence of the mall category directly correlates to Gen Z shoppers’ desire for community and in-person connection,” Elizabeth LaFontaine, research director at Placer.ai, told USA TODAY. LaFontaine said mall-based retailers and brands are working both physically in-store and digitally to leverage the power of social media to connect directly with Gen Z audiences, as younger shoppers turn to social media to share tips and research trends.
Last year, shoppers between the ages of 18 and 24 made 62% of all general merchandise purchases in stores, according to Circana. Shoppers 25 and older made 52% of their purchases in person, Sarkana said.
According to NielsenIQ and World Data Lab, Gen Z is expected to spend $12 trillion by 2030.
West Coast Gen Z shoppers visit malls the most
According to PwC data, Gen Z’s share of shopping mall foot traffic has increased by 57% year over year.
But younger shoppers are returning to malls selectively, said Ari Furman, industry leader for U.S. consumer markets at PwC.
Furman told USA TODAY that they are moving back to value-oriented shopping malls, where suburban malls also have stores and brands, rather than high-end luxury brands.
She says there are variations across the country. Along the West Coast, Gen Z is increasingly frequenting shopping malls, with California leading the way with a 62% increase in foot traffic, Fuhrman said.
“The simple experience of shopping in person feels novel,” Furman said. “This is a sensory and social experience that cannot be recreated through a screen.”
Fuhrman said her team also believes Generation Alpha, or people under 13, will be far behind Gen Z shoppers in driving a return to malls.
Benefits that appeal to Gen Z shoppers
A Lightspeed Commerce survey of 3,000 shoppers in the U.S. and Canada found that 75% Respondents aged 18 to 24 say in-store “third spaces” such as cafes, lounges and social areas influence where they shop. USA TODAY exclusively revealed the findings for the first time.
Dax DaSilva, CEO of Lightspeed Commerce, said Gen Z feels very isolated as a generation, and it’s no surprise that they’re leading the move back to in-person stores and malls.
“This is because this generation has grown up a lot during the pandemic and is experiencing a very different reality than most of us,” DaSilva told USA TODAY, adding that many Gen Zers are looking to meet up with friends in stores and malls to combat loneliness.
67% of respondents said they feel less isolated in stores with social and community features.
It’s a good opportunity for retailers to not only sell products, but also create social moments that make young people want to “come into the store, find a reason to stay, and make it part of the social dynamic,” he said.
Retailers bring in separate spaces to attract shoppers
Retailers are listening.
Brooklyn, New York retailer WOODstack is responding to shoppers’ desire to blend retail and experiential. WOODstack’s head buyer and divisional product manager Jude Sainjur said the company is partnering with a chef to open a restaurant attached to a retail store next month.
“Opening this space is about reinforcing and elevating the concept of creating community,” he said. “People don’t want to feel super transactional anymore.”
Betty Lin-Fisher is a consumer reporter for USA TODAY. Contact her at blinfisher@USATODAY.com or follow her at @blinfisher on X, Facebook and Instagram and @blinfisher.bsky.social on Bluesky.. Sign up for our free The Daily Money newsletter, breaking down complex consumer and financial news. Subscribe here.
