Gen Z’s in-store spending growth is outpacing all other generations

Mall revival: Gen Z’s retail-spending growth is outpacing all other generations, according to NielsenIQ, with the generation’s global annual retail spending expected to exceed $12 trillion by 2030. Gen Zers spend a greater proportion of their discretionary dollars in physical stores than older generations, according to Circana.

The reason this is important, is because the millennial generation never warmed to hanging out at the mall in the same way Gen X had or Gen Z is doing.

Shoppers between the ages of 18 and 24 bought 62% of their total GAFO purchases in stores rather than ordered them online last year. Shoppers ages 25 and older, by contrast, made 52% of their purchases in person, according to Circana.

Who stands to benefit from this trend? Certainly mall owners and operators like Simon Property Group, Unibail-Rodamco-Westfield, Macerich and other companies, but so do retailers that cater to Gen Z: Abercrombie & Fitch Co., Madewell, Urban Outfitters, Nike, UNIQLO, PACSUN, SKIMS, Glossier, Inc. and even more obscure names like Catbird NYC, a jewelry brand catering to Gen Zers with a "magical atmosphere" that feels like a discovery rather than a transaction.

Perhaps the zest for in-person experiences is due to Gen Zers spending their formative years under pandemic lockdown.

Read more: A New Generation of Mall Rats Has Arrived (The Wall Street Journal)