America’s zombie malls could be saved by Generation Z, who prefer to see and touch clothes and crave real-life social interactions.
Retail experts say it’s the immediacy of touching and trying products that is driving teen shoppers back to brick-and-mortar stores, including many struggling stores that have been stranded since the pandemic.
Multiple studies show that Generation Z, people between the ages of 16 and 26, prefer physical shopping as much as online shopping, and more customers from that age group prefer physical stores than any other generation.
“Gen Z shoppers are bringing back the mall experience,” said Kristin Grove, senior vice president of National Retail Leasing at global real estate firm JLL. the LA Times.
“They want a sense of community. They want to bridge the gap between the social media they use and meeting each other and shopping in person.”
America’s zombie malls could be saved by Generation Z, who prefer to see and touch clothes and crave real-life social interactions
Retail experts say it’s the immediacy of touching and trying products that is driving teen shoppers back to brick-and-mortar stores, including many struggling stores.
The mall also offered a photo shoot with Santa Claus to attract Generation Z, who prefer in-person shopping as much as online shopping
a report from the International Council of Shopping Centers shows that 95 percent of respondents say they shop in physical stores and 95 percent say they shop online.
Shoppers told the trade group that they prefer to be in the store so they can see, touch and try on clothes, and get the products straight away.
“Although members of Generation Z are digitally native consumers, they interact dynamically with brands both in-store and online,” the group wrote in their report.
Physical shopping experiences may be more important to Gen Z than any other age group study from the marketing agency Marigold found in 2022.
According to the report, 47 percent of Gen Z prefer to shop in-store rather than online, more than any other generation.
USC Marshall School of Business assistant professor Stephanie Tully said, “This digitally savvy generation is used to having things instantaneous that they can download, open and view.”
“And so from that perspective, the desire to get physical products immediately makes sense and would explain the interest in physical products.”
Nicole Tan, 23, said she browses items online but prefers to purchase from physical stores. She was spotted shopping at the Westfield Century City mall in Los Angeles, California.
‘I like to try things out. “If I see ads on social media and there’s a sale online, I might buy things online, but most of the time I like to shop in store,” she said.
The 23-year-old who works at a talent agency added that she sometimes goes to the mall not to shop, but to eat and take a walk.
“I do more recreational, non-shopping things at the mall,” she said.
She belongs to her generation that visits shopping centers not only to shop, but also to get together with friends.
“There’s a lot of data showing that Gen Z is a particularly lonely generation and needs more social interactions,” Tully said.
“(Gen Z) would probably benefit more than other generations from going out and having these experiences in person.”
Shoppers told the trade group that they prefer to be in the store so they can see, touch and try on clothes and get the products straight away
Westfield Century City features a gym, escape room, cinemas, restaurants and bars, in addition to clothing and accessories stores.
“It’s usually a combination of not just retail … but good food and drinks and opportunities to do things like (take care of) daily needs,” Grove said. “You’re multitasking and doing other things, not just shopping.”
Louis Schillace, the mall’s senior general manager, said: “If you think about Generation Z and how they use the space, it gives them another opportunity to choose this space as their place for a night out.”
Malls in America have been struggling, mainly due to the growth of e-commerce in recent years and pandemic restrictions.
Retailers are adapting to a new environment and targeting the Gen Z market, which may lead the way in reinvigorating the personal shopping experience.
They view malls as spaces to hang out and spend quality time with friends and family and prefer to spend money on experiences rather than material products, according to the International Council of Shopping Centers.
To cater to young shoppers, malls offer upscale restaurants and various activities and events.
The Grove in Los Angeles, known for its double-decker car and iconic fountain, features dozens of restaurants and bars and hosts pop-up events.
South Coast Plaza, another major mall in Southern California, turned its carousel horses into Santa’s reindeer during the Christmas season.
The mall presented multiple holiday performances and even offered holiday photo shoots with Santa Claus.
Thanks to these efforts and the influx of Gen Z shoppers, America’s moribund malls could soon welcome a promising revival.
In the resurgence of shopping centers, downtown San Francisco’s mall may be behind the trend.
Malls in America have been struggling, mainly due to the growth of e-commerce in recent years and pandemic restrictions
Retailers are adapting to a new environment and targeting the Gen Z market, which could potentially lead the way in reinvigorating the personal shopping experience
San Francisco Center has lost a whopping $1 billion in value since 2016 and just lost its fifth store in a month.
The mall is now 75 percent empty as the beleaguered city struggles with rampant homelessness and escalating criminal activity.
Madewell said on their website that they would be closing the location within Monday.
The clothing and accessories store follows sister brand J. Crew, as well as Adidas, Lucky Brand and Aldo, all of which have closed or plan to do so in the coming days.
Nordstrom had been the mall’s anchor tenant, occupying a 300,000-foot multi-story space in the mall. The mall’s closure in August 2023 sent shockwaves through the large, upscale shopping center previously owned by Westfield.
There is still a large Bloomingdales in the shopping center, but all eyes are now on that retail giant to see whether it should also close its doors.
Since then, stores have quickly left the failing mall, with businesses reporting weak sales, declining foot traffic and downtown San Francisco’s notoriously bad crime and drug levels.
In the resurgence of shopping centers, downtown San Francisco’s mall may be behind the trend
The San Francisco Center has lost a whopping $1 billion in value since 2016 and just lost its fifth store in a month
The mall is located in the city’s troubled Union Square area, which has seen businesses and tourists flee since the pandemic hit.
San Francisco’s tech-based economy means many residents continue to work from home, while the downtown area is now overrun with homeless people, drug users and associated crime.
Photos and videos taken inside the once bustling mall show it empty, with shuttered stores and few to no customers.
Owners Westfield and partner Brookfield Properties lost control of the 5 million-square-foot retail and office complex to lenders last June, leaving them to default on a $558 million loan.
“For more than two decades, Westfield has proudly and successfully operated the San Francisco Center and during that time has made significant investments in the vitality of the property,” the company said at the time.
“Given the challenging operating conditions in downtown San Francisco, which have resulted in declines in revenue, occupancy and visitor traffic, we have made the difficult decision to begin the process of transitioning management of the mall to our lender, so that they have a recipient to operate the property in the future.’