How major malls are catering to Gen Z shoppers

Despite being the first demographic to grow up entirely in a digital world, mall owners have found Generation Z values shopping in person as much as their parents do and are tailoring the mall shopping experience around their preferences and interests.

Recent research highlights this.

Virtually all Gen Z respondents to a 2023 ICSC (formerly known as the International Council of Shopping Centers) survey said they shop at brick-and-mortar stores and that many value the ability to get items immediately or being able to see, touch and try products. Sixty percent of the ICSC survey’s Gen Z respondents said they visit malls to socialize or meet friends even if they don’t need something specific, 60% also said they would rather spend money on experiences than material items, and 70% said retail centers and stores have done a good job designing things for Gen Z members to enjoy together.

Now, mall owners are realizing their properties can continue to attract younger people, but they have to learn a new language centered around TikTok, influencers and updated retail trends to appeal to the younger generation.

Marketing to an extremely online crowd

The ICSC data about Gen Z’s shopping patterns helped drive real estate investment trust Simon Property Group’s latest marketing campaign, “Meet Me @themall,” the company’s CMO Lee Sterling told Modern Retail.

“We saw a big opportunity with this campaign to really tap into the fact that the mall is a touchstone of the American cultural experience, and it has been for generations,” Sterling said. “People today, just like they did back in the day, use the mall to shop for a special occasion, to head to the mall with friends after school, they might have their first job at the mall, but the bottom line is it’s as relevant today as it was for moms back in the day.”

Simon — which operates 195 malls and shopping centers throughout the U.S. — focused the campaign around ‘80s and ‘90s nostalgia and the idea that the new generation wants to shop in the malls as much as their parents do.

The campaign, which includes a mall-themed recreation of the song “Don’t You (Forget About Me)” from the film “The Breakfast Club,” will run on streaming services, on Simon’s owned channels, in shopping centers and on social media platforms, including Instagram and TikTok. The ads feature social media influencers Alejandro Rosario, The Pitman Sisters, Gym Tan, Mya Miller, Preshous Jordan and Dan Pelosi.

Bringing in more experiential retail, entertainment venues

While finding the right marketing channels and being on platforms like TikTok are important, Tanger CEO Stephen Yalof said it all starts with leasing. “If I’m not providing the brands that these kids want to shop, they’re never going to come back and shop with me again,” he said. Tanger operates 38 outlet shopping centers.

Yalof said the company has also been focused on adding more Gen Z-preferred experiences and entertainment venues like Dave & Busters, Main Event, Chicken N Pickle and PopStroke in and around the outlets. Years ago, outlet malls had been focused more exclusively on shopping than dining or other activities. “A lot of these uses are popping up around our shopping centers, and we see customers are drawn to that, and then we get that residual visit.”

Beyond new types of experiences and restaurants, Tanger just inked six deals with Sephora. Yalof described the beauty retailer as a favorite among the even younger Generation Alpha. “The fact that the Sephora stores have professionals in the store that help them understand how to use those products, it really makes for a great shopping experience for those younger people who are trying to figure out how to use that stuff,” Yalof said.

Simon has worked to attract Gen Z through its leasing strategies as well, according to Sterling, who pointed to a few examples of popular brands and experiences opening up: Kim Kardashian’s Skims recently opened at Lenox Square in Atlanta; growing friendship bracelet maker Little Words Project has come to some of the malls; and Lifetime Fitness centers have opened several of its properties as well.

Angie Freed, general manager of Galleria Dallas for Fort Worth, Texas-based Trademark Property Co., said experiences like entertainment venues and events at the major regional mall are designed to appeal to that group without alienating other shoppers.

Freed said the Galleria is also making sure it has brands that appeal to Gen Z, follows social media trends and keeps up with the popular retailers and merchandise for that group. She pointed to Uniqlo, reported as being especially popular with Gen Z women, which will open at the mall on Oct. 18. The mall is also one of two malls in the U.S. that will bring in Netflix House, an experiential entertainment venue based on Netflix shows and movies.

Additionally, the mall, about 11 miles north of downtown Dallas, is making sure it offers other unique experiences, such as fitness classes in its new outdoor plaza. Gen Z has also changed the way it operates its ice skating rink, encouraging management to offer themed skating nights such as Taylor Swift night, a breast cancer awareness night called Pink the rink and a country night. “We’ve actually found that the ice skating center is a great place for Gen Zers to gather,” Freed said.

All in all, even though some department stores have had to close down and have left landlords needing to rethink how that land is used, such as through residential development, it looks as though traditional malls still have a future.

“The younger demographic, particularly Gen Z, likes to bridge brick and mortar with digital technology, but we’re encouraged that they do prefer to shop in real life and in stores,” Freed said.