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Full-circle shopping? For Gen Z, malls might be cool again

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Full-circle shopping? For Gen Z, malls might be cool again

Oct. 3, 2024

That relaxed, straight-leg jean that defined your ’90s wardrobe? There’s likely a high school student wearing it today.

“It’s really fun for me to see that generation so excited to get a Levi’s ’90s-style jean that I for sure sold years ago,” said Nikki Sorensen, who began her career with The Buckle in 1989 and has managed the Sioux Falls store inside The Empire Mall since 2006.

“I personally see that denim is something that the Gen Z shopper is very excited about. They’re excited about the trends of the past.”

That same enthusiasm seems to be carried over as Gen Z decides where to shop. The mall, it seems, might be cool again too.

“Definitely,” Sorensen agreed. “My observations are that pre-teens and teens definitely shop with their friends, friend groups and parents quite often.”

Gen Z, generally defined as those born from 1996 to 2010, are young teens through 20-somethings.

While they might be the most digitally connected generation ever, 97 percent of Gen Z survey respondents said they shop at brick-and-mortar stores, according to a 2023 report by the retail trade organization ICSC.

The reason?

“The ability to get items immediately and the opportunity to see, touch and try products before making a purchase,” the report said. “Some members of Gen Z also say they appreciate not having to pay for shipping. Meanwhile, others value the opportunity to hang out with friends or enjoy the aesthetic and unique experience of the physical store.”

This month, mall owner Simon, a real estate investment trust, is launching a nationwide campaign to encourage more of it.

The multifaceted campaign “Meet Me @themall” blends 1980s and 1990s nostalgia with Gen Z’s love of shopping and all things retro, according to a statement from Simon.

“The mall is a touchstone of the American cultural experience – one with remarkable staying power,” said Lee Sterling, Simon’s chief marketing officer. “Celebrating the spirit of meetups in the food court, memories made with friends and coming-of-age moments, this new campaign is Simon’s invitation for everyone to gather in a place that has always brought joy, community and memorable experiences.”

At The Empire Mall, a Simon property, general manager Dan Gies regularly sees members of Gen Z shopping, dining and socializing.

Younger teens gravitate toward places such as Gibby’s Arcade and The Candy Clubhouse, he said.

“The young kids come to meet up with their friends, they walk the mall and just have a hangout place,” he said.

Older members of the cohort are repeat customers thanks to cosmetics purchases at Sephora, Dillard’s and Macy’s and seek out athleisure brands.

“The high school kids like to go to their fun shops — BoxLunch and Zumiez where they have more of the relatable teen and tween stuff,” Gies said. “And then you’ve got shoes and things they need to replenish, and there’s the fashion shopper. So it’s a pretty wide scale that we see.”

He regularly sees Gen Z shoppers also in search of trends at stores such as Dry Goods and Altar’d State.

“They’re looking at what’s new seasonally,” he said.

The newest option, J. Crew Factory, is scheduled to open by mid-October.

But how Gen Z shops is different from previous generations, Sorensen has noticed.

They’re often in the store looking for outfits for special events such as trips or concerts, they’re paying with digital wallets, and they’re not as inclined to order online once they’re in the store, she said.

The biggest differentiator: “I’ve noticed that the Gen Z shopper has done their research before they come into a store,” she said. “They’re really aware of trends because they’ve seen it on social media online.”

Where previous generations might have had a sense for what was in style through magazines or movies, this generation is coming in with photos and social media posts showing what they want, Sorensen said.

“They’re looking to see those trends in person and experience them in person before they make a purchase,” she said. “The biggest difference is just how much they’ve been exposed to prior to coming in. The Gen Z shopper says: ‘This is the trend. Do you have it?’”

ICSC’s research found that Gen Z is “a highly cost-conscious cohort” with 48 percent of those surveyed saying discount and off-price retailers comprise their preferred shopping destinations. That includes brands such as  T.J. Maxx, Marshalls, Kohl’s, Walmart and Target.

Specialty retailers, including Abercrombie & Fitch, Best Buy and Sephora, account for 24 percent of preferred shopping destinations, while fast-fashion retailers such as Shein or Zara comprise 22 percent of favored categories.

Targeting the latter shopper, Forever 21 at the mall now accepts returns from fast-fashion e-retailer Shein.

Simon’s Gen Z-focused marketing campaign is now live on premium streaming services such as Netflix, Peacock, Hulu and Disney +, as well as on Instagram, TikTok, YouTube, Simon’s owned channels and in its shopping centers throughout the country.

@themall This is your sign to spend a day at the mall! “Meet Me at the Mall™” 🎥 directed by Matty Peacock and starring 🌟 @alejandro @Pitman Sisters @Gym Tan @Mya Miller @Preshous✨ and @grossypelosi #meetmeatthemall #simonmalls ♬ Won’t You (Meet Me at the Mall) – Beacon Street Studios for Simon Property Group (via SuperBloom House)

The ads are the first step in a broader campaign that headlines creator content to generate enthusiasm not just among members of Gen Z but a perennial target for retail: their moms.

More than 250 talent, creators and influencers are partnering with Simon, including the stars of the ad’s hero spot with Alejandro Rosario, The Pitman Sisters, Gym Tan, Mya Miller, Preshous Jordan and Dan Pelosi.

“While Gen Zers may find their moms cringey, it turns out that they have developed a love for many of the same things their parents did: from fashion to movies to music and the mall. … While the mall experience has evolved over the years, it continues to capture the zeitgeist of each generation,” Sterling said.

When it comes to real influencers, though, “the most famous faces online aren’t necessarily the ones that are driving Gen Z to make purchases,” according to the ICSC report.

Gen Z consumers said family members and friends have the biggest influence on purchases, with 56 percent of respondents ranking them in their top three factors that influence what they buy. Feedback from real users also is significant, with 54 percent of respondents ranking reviews on product websites and 47 percent ranking third-party review websites, forums and blogs in their top three.

Company or brand employees, store associates or seeing products in a store also have a notable impact, with 43 percent of respondents ranking them in their top three. Social media and influencers also are considerations, with 39 percent of respondents ranking them in their top three.

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