FOX Business correspondent Madison Alworth reports on new data showing Generation Z retail spending outpacing other generations on ‘Varney and Co.’
Gen Z shoppers are helping fuel a new chapter for America’s malls as younger consumers increasingly favor in-person shopping experiences over simply filling online carts. Their spending habits are becoming a major focus for retailers and mall operators looking to adapt to changing consumer behavior.
FOX Business’ Madison Alworth joined FOX Business’ Stuart Varney on “Varney & Co.” to report on how malls are redesigning spaces and adding new experiences aimed at younger shoppers, from social media-friendly dressing rooms to activities like indoor rock climbing walls.
Shoppers at a mall in Glendale, California, U.S. (Kyle Grillot/Bloomberg / Getty Images)
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According to data firm NielsenIQ, Gen Z retail spending is expected to surpass $12 trillion globally by 2030, with growth outpacing every other generation. Data from Circana also found shoppers between 18 and 24 years old made 62% of their general merchandise purchases in physical stores last year, compared to 52% among consumers 25 and older.
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Those trends come as broader retail spending has remained resilient despite ongoing economic uncertainty. U.S. retail sales rose 0.5% in April from the previous month and climbed 4.9% year over year, according to Commerce Department data released Thursday, showing consumers are still spending even as higher interest rates continue pressuring household budgets.
Macerich Executive Vice President of Asset Management Cory Scott said younger shoppers are increasingly prioritizing experiences alongside purchases.
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“They value experiences almost more than they value material things. So it’s as much about the journey as the shopping and the things that they’re taking home with them,” Scott said.
‘The Big Money Show’ panelists discuss how Gen Z is increasingly opting for skilled trades over college degrees and desk jobs, as well as new brokerage accounts letting teens invest.
Some Gen Z shoppers told FOX Business malls offer a social connection that online shopping cannot fully replace.
One shopper said, “We grew up during like quarantine… Getting out and hanging out with people was a very big thing we didn’t appreciate during that time… As we grow older, we see that we need to be doing these things and it’s kind of fun.”
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