Gen Z Fuels Mall Revival with Experience-Driven Spending Surge

Gen Z consumers are outpacing all other generations in retail spending and are increasingly choosing physical stores over online shopping, according to new reports on shifting consumer habits.

Malls and brands are adapting with features tailored to younger shoppers, including updated dressing rooms and interactive activities such as rock climbing walls. One of the largest mall owners in America highlighted experiences as central to this trend.

“They value experiences almost more than they value material things. It is as much about the journey of shopping as the things that they are taking home with them,” said a spokesperson for the mall owner.

Gen Z spending is projected to reach $12 trillion, with the group spending more than any other generation. Notably, 62% of those dollars are spent in physical stores. As the first digital native generation, many grew up as iPad kids but are embracing in-person shopping as young adults.

One Gen Z shopper explained the appeal: “We grew up during quarantine. I feel like getting out and hanging out with people was a very big thing we did not appreciate at that time. Now as we grow older we see we need to be doing these things and it’s kind of fun.”

The mall sector has shown resilience amid industry consolidation. The major mall owner previously controlled about 80 malls in America and now owns 39. The company acquired another property last week and expressed strong confidence in the future of physical retail.

Industry observers note that while some predicted the decline of brick-and-mortar retail, Gen Z’s preferences are driving a renewed focus on experiential shopping environments.