Seeking Real-World Experiences
Whether she’s buying a gift or a new outfit, Lindsey Hyams’ shopping trip usually starts online. But instead of hitting the "buy" button, the 23-year-old Marlboro, New Jersey, resident often heads to the mall to make her purchases.
"It’s actually more convenient for me to just go to the store, try on the item," she said. "If it doesn’t fit, I can just return it right then and there. You know, instead of having to go to UPS, send it back, waiting another five to seven business days."
Hyams, who works in social media and marketing, illustrates one of the traits of Gen Z that may be surprising. The tech-savvy teens and twenty-somethings of this generation shop in stores more than millennials and Gen X and about as much as their baby boomer grandparents, according to a survey by the International Council of Shopping Centers, a trade group.
Changing Retailers’ Approach
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 such as "Clueless," "Fast Times at Ridgemont High" and "Mallrats," which portrayed malls as teen hangout spots.
Seeking Social Connection, Instant Gratification, and Moments to Post on Social Media
Up-and-coming spenders in this generation are seeking social connection, instant gratification, and moments to post on social media, according to interviews with shoppers and experts.
Mall owners and retailers are trying to cater to teens and twenty-somethings with unique store features, such as selfie mirrors or videos, and experiences such as pop-up concerts.
Hunting for Deals
Yet some of Gen Z’s favorite brands are located outside of a 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 such as ThredUp the most.
Conclusion
Gen Z’s interest in brick-and-mortar shopping is shaping the way stores look and where retailers are choosing to invest. As retailers adapt to this new generation of shoppers, they must consider the importance of social connection, instant gratification, and the desire for moments to post on social media.
FAQs
Q: What are Gen Z’s shopping habits?
A: Gen Z consumers shop in stores about as much as their baby boomer grandparents, according to a survey by the International Council of Shopping Centers.
Q: What do Gen Z shoppers want from retailers?
A: Gen Z shoppers seek social connection, instant gratification, and moments to post on social media.
Q: How do retailers adapt to Gen Z’s shopping habits?
A: Retailers are trying to cater to Gen Z with unique store features, such as selfie mirrors or videos, and experiences such as pop-up concerts.
Q: What are some of Gen Z’s favorite shopping destinations?
A: About half of 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.
