Gen Z shopping at malls rather than online

Gen Z, which spans roughly from about ages 13 to 28, makes up about 20% of the U.S. population, or roughly 69 million people, according to the Annie E. Casey Foundation, a nonprofit that focuses on U.S. children and youth. The group’s spending power totals about $150 billion, according to research by consulting firm McKinsey.

For some of Gen Z, the mall’s appeal may be the same as in cult classic films like “Clueless,” “Fast Times at Ridgemont High” and “Mallrats,” which portrayed malls as teen hangout spots.

Yet Roberta Katz, a Stanford University senior research scholar and author of “Gen Z, Explained: The Art of Living in Digital Age,” said the group’s preferences have also been shaped by coming of age in a digital world.

One of the most surprising findings of her Gen Z research was a simple one: Despite growing up in a world where everything from schoolwork to dating takes place on the internet, almost every Gen Z person she surveyed or interviewed said they preferred to communicate in person.

“Gen Zers, by and large, are very much aware of how important it is to stay human in this digital age,” she said. “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.”

Tom McGee, CEO of ICSC, said teens and twenty-somethings have also been shaped by growing up during two major crises: the Great Recession, when they saw family members or friends hit by unemployment, and the Covid-19 pandemic, when they missed out on major milestones like going to school dances, chatting with friends in the cafeteria or living in college dorms.

McGee, a father of two Gen Z daughters, said those profound experiences continue to influence the generation’s views of spending and its desire for social interaction.

“Now that that those restrictions have been lifted, they really lean into that physical interaction,” he said. “They missed it.”

Another reason why Gen Z is heading to the mall? Instant gratification. About 30% of Gen Z consumers said they choose to buy items in person because they get them immediately, followed by 28% who said they prefer in-person shopping because they can see, touch and try the products, according to a survey of shoppers by ICSC.

Gen Z’s interest in brick-and-mortar shopping is shaping the way stores look — and where retailers are choosing to invest.

At Abercrombie & Fitch’s namesake brand, which caters more to millennials, digital sales drove 60% of revenue in the last full fiscal year. That compares with only 30% at the company’s Hollister brand, which tends to attract Gen Z shoppers.

Abercrombie & Fitch’s Chief Operating Officer Scott Lipesky said the brand has become intentional about not only having eye-catching videos and photography online, but also making sure stores are “light and bright and easy to navigate.”

He said the retailer has to make sure its website and app keep up with teens who are “blurring the digital and physical world.” Those customers often discover a product online through a website and social media, then come into stores to try it in person.

Shoppers are saying, “‘I’m going to try them on. I’m going to feel them, I’m going to touch them. And really, does it fit me the right way?’ And then they’ll either buy or sometimes they go back home and buy online,” Lipesky said.

He added Abercrombie has also had pop-up events at mall stores to attract shoppers, including an autograph signing with Ohio State football players at its Hollister store in Columbus, Ohio, and a concert in one of its Hollister stores in California. It also debuted a collegiate collection of sweatshirts, hoodies and tees with vintage spins on college logos, which it sells based on a mall’s nearby universities.

Princess Polly, on the other hand, is a mall newcomer. The online-only retailer opened its first stores in U.S. malls after hearing from shoppers who wanted to try on and feel the brand’s tops, dresses and more in person, said Courtney Dres, the company’s chief merchant.

At store openings, shoppers began lining up at 4 a.m. to be some of the first people to walk in, she said.

Since Princess Polly opened its first store in Los Angeles’ Westfield Century City mall last year, Dres said the retailer has decided to go bigger — with more square footage, additional fitting rooms and a wider selection of items like handbags, sunglasses and jewelry.

She said Princess Polly also included store features chosen for its core customer between ages 16 and 26. Those include mirrors scattered throughout the store for shoppers to snap selfies and LED screens that help consumers show off homecoming dresses or back-to-school outfits.

Princess Polly has opened five stores so far and has two more planned in the coming months. Almost all of the stores are in malls.

“Our customer is telling us loud and clear that they want to shop us in real life, as well as online,” Dres said.

Yet some of Gen Z’s favorite brands sit outside of the mall. About half of the Gen Z consumers surveyed by ICSC said they most frequently shop at discounters and off-price retailers, such as Walmart, TJ Maxx, Target and Kohl’s. About a quarter of respondents said they shop at dollar stores and 13% said they frequent thrift shops or second-hand sites like ThredUp the most.

Compared to older generations, Gen Z shoppers also have high expectations of how brands connect their online and offline businesses.

For example, Hyams, the Gen Z shopper from Marlboro, N.J., browses retailers’ websites and saves items in an app called Locker. She collects products from her favorite stores, including Aritzia, Abercrombie, Zara and American Eagle.