Gen Z May Save the Shopping Mall: How Can Mall Stores Attract Younger Consumers?

Traditional discourse surrounding the future of the American shopping mall might suggest that the concept is a bit archaic, a product of a previous era that finds itself dwindling in popularity as the years pass.

Not so, according to a recent CNBC report. What's more, the demographic responsible for potentially revitalizing the popularity of shopping malls may be somewhat surprising — Gen Z.

Gen Z and the Social Aspect of Shopping Malls

One central theme exhibited by CNBC's report was Gen Z's preference for tangible social experiences that take place in the real world, rather than through a monitor or smartphone screen.

Roberta Katz, a Stanford University senior research scholar and author of "Gen Z, Explained: The Art of Living in a Digital Age," explained Gen Z's predilection for in-person shopping experiences.

“Gen Zers, by and large, are very much aware of how important it is to stay human in this digital age,” she said, as quoted by CNBC. “They like to be with each other. They appreciate face-to-face and one-on-one communication. And so shopping for some of them might be an opportunity to go into a store, have a real-life experience.”

Gen Z and the New American Mall Experience

Malls seem to be responding to this opportunity, in turn. As Modern Retail outlined, malls are making sure to lease space to retailers that appeal to Gen Z and the even younger Generation Alpha, bringing in brands ranging from the ever-popular Sephora to Dave & Buster's and Main Event.

Given that 97% of Gen Z respondents surveyed by a 2023 ICSC poll stated that they shop at brick-and-mortar stores — the primary appeals being the ability to touch and try on products as well as the opportunity to hang out with friends and enjoy the aesthetic of the store — it follows that malls are eager to attract younger consumers. It was this data that spurred Simon Property Group, which operates 195 malls and shopping centers nationwide, to create a marketing campaign specifically aimed at Gen Z, called “Meet Me @themall."

“We saw a big opportunity with this campaign to really tap into the fact that the mall is a touchstone of the American cultural experience, and it has been for generations,” Simon CMO Lee Sterling said to Modern Retail. “People today, just like they did back in the day, use the mall to shop for a special occasion, to head to the mall with friends after school, they might have their first job at the mall, but the bottom line is it’s as relevant today as it was for moms back in the day.”

What Can Mall Retailers Do To Appeal to Gen Z?

Beyond updating store standards to be brighter and incorporate more video screens, what can mall retailers do to capture the imagination, and spending power, of Gen Zers?

According to the ICSC data, there are several trends retailers should be aware of when considering this age cohort's consumer preferences:

• Gen Zers are socially conscious shoppers. Brands that support mental health awareness, environmental conservation and sustainability, and racial and gender equity perform favorably.
• Younger Americans prioritize convenience, speed, and efficiency — with 46% of the study's respondents rating quick and easy checkout as the most influential factor while shopping — so creating a seamless shopping experience from walk-in to checkout is key.
• Reputation is vital to retailer survival when it comes to Gen Z. Trusted and authentic reviews on websites, third-party review sites, blogs, and forums can help to instill confidence in consumers belonging to this age group.

Finally, incorporating fun or innovative installations (like interactive art features) or food and entertainment attractions can enhance the appeal of any given mall as concerns members of Gen Z. With plenty to see, do, and experience, retailers renting space within a modernized mall will likely see foot traffic and sales increase, and younger Americans could be a primary driving force behind both.