Shoppers stroll through a shopping center decorated for the holidays. Source: Getty Images
As malls across the country prepare for the holiday season, Gen Z shoppers are emerging as a significant force in the shopping landscape. According to “The rise of the Generation Z consumer» report from the International Council of Shopping Centers (ICSC), the unique preferences and behaviors of Generation Z are not only shaping the retail industry, but also having a profound impact on the economy.
Generation Z shoppers are distinguished by their preference for physical stores rather than relying solely on the convenience of online shopping. Nearly 97% of Gen Z respondents who shop in physical stores also shop online (95%), according to the ICSC report. Among those who shop in-store, 30% do so to get products immediately, while 28% are motivated by the tactile experience to see, touch and try products.
For Gen Z, a trip to the mall isn’t just about buying gifts; it’s about having an experience that involves the convenience of meeting, shopping, and dining with friends in person. Smart decision-makers will need to bridge the gap between this generation’s online and offline shopping behaviors to capitalize on this growing opportunity to earn their loyalty.
“You had to be there.”
Search JLL reveals that Gen Z is leading the charge when it comes to in-store shopping on special sale days. Whether it’s Thanksgiving, Black Friday weekend or Super Saturday, more Gen Zers say they’ll hit the stores compared to other generations.
It’s not just deals they’re looking for; they crave the excitement of the bustling mall atmosphere during the holiday season. In fact, the report shows that 49.6% of Gen Z shoppers prefer malls, compared to an average of 40.8% for other generations. It’s clear that Gen Z is turning to malls this holiday season for the experience, from festive music to twinkling lights to the aroma of seasonal treats wafting through the air.
Generation Z, known for their strong sense of community, values the opportunity to spend quality time with friends while searching for the perfect gifts. The holiday season represents a time to bond, share fashion tips and enjoy a meal together, creating treasured memories amid the glittering holiday decorations.
However, their penchant for physical stores is not solely driven by social desires. It is also a response to their unique shopping habits and behaviors, influenced by various factors such as the state of the economy, social media and brand ethos. According to the ICSC report, speed, convenience and efficiency are the main determining factors for in-store shopping. 46% of Gen Z shoppers like quick and easy checkouts, 39% like the ability to get what you want in store right away, and 23% like the option to buy online and pick up in store.
Social still matters
The physical ambiance isn’t the only thing that draws Gen Z to shopping malls. Social media continues to play an important role in shaping their holiday shopping habits. According to the ICSC report, Gen Z shoppers favor platforms like Instagram and TikTok, with 46.5% turning to Instagram and 38.5% turning to TikTok for Christmas shopping inspiration.
Instagram, with its visually appealing posts and shoppable tags, offers a curated shopping experience tailored to their tastes. Influencers and brands using Instagram to showcase holiday fashion, decor, and gift ideas make it an indispensable tool for Gen Z’s shopping journey. TikTok’s quick and entertaining videos, on the other hand, offer creative gift ideas, money-saving tips and direct shopping experiences that create a more interactive approach to retail. The platform’s algorithm ensures that users discover content that matches their interests, making it a valuable resource for holiday inspiration.
JLL recognizes this trend and partners with influencers across the country to create “holiday” video content that positions their local hubs as the ultimate source of style and gift inspiration.
With smartphones in hand, Generation Z is discovering a new meaning at the mall. Armed with recommendations from their favorite influencers and social media platforms, they embark on immersive experiences that bridge the online and offline worlds, like going on a scavenger hunt to find the perfect gifts for their loved ones.
When they make purchases, they do so with intention, preferring to buy from brands that align with their values of authenticity and ethical practices. They look for retailers that champion sustainability, diversity and social responsibility. More than half (53%) of Gen Z shoppers prefer to buy from brands that support mental health, and 47% prefer brands that support sustainability initiatives, and 47% prefer brands that support equality racial and gender, according to the ICSC report. They are more likely to support companies that prioritize fair labor practices and environmentally friendly initiatives. In doing so, they use their purchasing power to advocate for a better world while meeting their holiday shopping needs.
The Future of Holiday Mall Shopping
The impact of Generation Z’s purchasing habits on the economy is undeniable. Their preference for in-store shopping brings life to shopping centers and brick-and-mortar businesses, helping to revitalize these spaces in the digital age. Shopping centers that adapt to their demands – from immersive in-store experiences to exclusive offers and a seamless mix of offline and online shopping options – are likely to reap the rewards, including their lasting loyalty.
In a world increasingly defined by digital interactions, Gen Z’s commitment to the in-store experience speaks to their desire for authentic connections and meaningful moments. The holiday season isn’t just a time to exchange gifts for this demographic; it’s an opportunity to create lasting memories with friends, interact with their favorite social media platforms, and support brands that share their values. By creating new holiday shopping traditions, malls can use nostalgia and innovation to leave a lasting impact on the retail industry for generations to come.
Gen Z’s holiday shopping habits are proving to be more than just a trend; they symbolize an opportunity to tap into community, their sense of individuality and harness the power of conscious consumerism, ushering in a new era of retail during the most wonderful time of the year.