Gen Z may be native to social media and mobile technology, but they are increasingly looking for physical retail shopping experiences.
According to a study by EY, roughly 63% of Gen Z respondents plan to make purchases at brick-and-mortar retailers this holiday season. By comparison, 50% of Gen Zers said they would shop online, a figure lower than any other generation except baby boomers.
This trend extends beyond holiday shopping. There has been a resurgence at malls across the U.S. that has been largely driven by Gen Z consumers.
“We are coming full circle on the social aspects of shopping,” said Don Apgar, Director of Merchant Payments at Javelin Strategy & Research. “We published some research a few years back on the impacts of social commerce, and how shopping for non-essentials (especially fashion items) is more of a social activity than something that is a need, like grocery shopping.”
“We used to see our neighbors in the shops on Main St, and then the post-war growth of the suburbs brought sprawling malls,” he said. “Even though the format was more ‘modern’ than Main St, it still gave us that place to gather and socialize as part of our shopping experience. The efficiency of ecommerce is compelling, but it lacks that social element—it’s harder to get excited about buying stuff when you’re home alone with your laptop.”
Searching for Experiences
According to CNBC, Gen Z’s preference for physical shopping is driven in part by convenience. While they may research products online, shopping in-store eliminates the wait for shipping. They also get to see, feel, and try on items before they purchase them in-store, reducing the likelihood of returns—which often requires shipping the item back and waiting for confirmation and a refund.
Many Gen Z consumers are also searching for more experiences they can share with friends, both in-person and on social media. Still feeling the effects of the pandemic, they are looking for ways to bolster personal connection.
Harbinger of the Renaissance
The search for experiences has brought many younger consumers back to malls. To fill that need, many retailers are offering new elements to make shopping more engaging, such as in-store concerts or signings. Mall owners are also working to attract consumers by adding features like rock climbing walls, ice skating rinks, and even art exhibits.
Though many online platforms have tried to replicate the shared shopping experience by integrating social media features, this model has yet to gain substantial traction among Gen Z consumers.
“Malls were already well along their path of decline when GenZ came of age, so, for many, e-commerce was the way that you shopped,” Apgar said. “With that perspective, the rebirth of the shopping mall is the natural extension—why meet your friends in the online store when you can meet them in the actual store?”
“As the CNBC article noted, stores are adding new features like selfie stations to reinforce the connection with social media shopping,” he said. “Early predictions are that social media in general may have run its course in society. Maybe this is the harbinger of the renaissance of physical retail shopping.”
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