Posted by Zoomers Seek In-Person Shopping Experiences
Is the mall making a comeback? It was once an icon of the American way of life. A go-to source for shopping, browsing, socializing, and even entertainment. But the advent of online shopping and effects of the COVID era left many malls little more than empty corridors with glaring vacancies.
Gen Z just might be their saving grace.
According to recent data, Gen Z loves the mall experience. The Wall Street Journal goes so far as to say that young consumers’ enthusiasm for brick-and-mortar shopping is helping to fuel a recovery in the American mall sector.
Based on data provided by Circana, an American market research and technology company, the Wall Street Journal reported that consumers between the ages of 18 and 24 purchased a healthy 62 percent of their merchandise in-store last year.
The phenomenon isn’t happening just in the US either. Burberry reported that part of its 3 percent increase in overall sales in January was helped by double-digit increases among Gen Z consumers in greater China and Asia Pacific. They also reported growth by this age group at in-store venues across all regions.
Marketers want to know what’s drawing Gen Z back to shopping malls across the globe?
The data contends that this age group wants to get out. Be it socializing while shopping with friends, the physical act of browsing, or the energy of wandering a bustling mall, a growing contingent of Gen Z wants to replace screen time with real world experiences. This is the group that spent some of its formative years in COVID lockdowns and doesn’t seem anxious to revisit the solitude.
Another factor is the online influencer, counterintuitive as it may seem. The Wall Street Journal notes that social media actually plays a significant role in the trend, crediting influencers with inspiring young people to make purchases and post selfies from fitting rooms found in retail shopping centers.
Gen Z’s penchant for in-store shopping is contributing to the opening of new physical store locations inside malls – the first upward trend perhaps since the recession of 2008. Retailers like Coach and Kate Spade are reporting double-digit in-store sales growth primarily on account of Gen Z customers. And retailer PacSun is growing its physical store presence for the first time in 25 years, with plans to open 35 new retail locations.
“It’s because Gen Z is showing up for the mall,” says PacSun CEO, Brie Olson. Will it be enough to breathe new life into beleaguered malls across the country? Read the full story.