Here's why younger shoppers still hit the mall

The Ipsos Consumer Tracker asks Americans questions about culture, the economy and the forces that shape our lives. Here's one thing we learned this week.

You’ve heard the story before: younger Americans, raised on the internet and accustomed to e-commerce, now do all their shopping online, driving a dead mall death spiral.  

And you may have it backwards. New data from the Ipsos Consumer Tracker and Ipsos Online Communities indicates that it’s older Americans, not younger ones, who have dropped the mall completely. 58% of shoppers aged 18-34 say they shop at shopping malls often or sometimes, compared with 48% of those aged 35-54, and just 38% of those 55+.

Those aged 18-34 were twice as likely as those 55+ to say they shop at malls often, while the oldest Americans were three times as likely as the youngest to say they never shop at malls.

It remains to be seen whether malls are a lifestage phenomenon — that is, a youthful preference that Gen Z will age out of — or a cohort phenomenon (i.e. a lasting generational predisposition towards brick and mortar). But for the time being, this falls in line with a growing body of data on younger Americans’ shopping preferences — and raises important strategic questions for brands looking to connect with Gen Z (along with everyone nervously watching the commercial real estate sector at large).

So why do young people say they’re going to the mall in the first place?

Many of the reasons given are relatively consistent across generations, with shoppers of all ages about equally likely to name convenience, variety, or in-store events as a reason for in-person shopping. Only three reasons were given more frequently by the youngest shoppers than by older ones: window shopping, accessibility, and movie theatres. 

That underscores the ways that younger Americans blend shopping with socialization and entertainment, as we explored in What the Future: Shopping. For some members of Gen Z, the mall remains a sort of “third space” — somewhere to go that isn’t work or home.

"For many younger consumers, going to the mall is a way to fill their bucket for connection with a social activity," says Jennifer Torgersen, a senior director with Ipsos' Online Communities practice. 

But don't take it from us. In their responses to an Ipsos Online Communities panel, Americans aged 18-34 emphasized socialization,  convenience and physical interaction. "I love being able to window shop at the mall, getting snacks at the food court, and being able to actually see products. I prefer to shop at a mall when I want to get out of the house, or when I'm shopping for gifts," one person said. 

Another person from Club Z, Ipsos' syndicated online community panel of Gen Z consumers, had similar thoughts: "The items are right there and you can look at all the other options in person. I like all the social interaction too of a mall. The experiences I have at a mall are much more pleasing than shopping online." 

That isn’t to say that all consumers are all in on in-person retail. 

72% of Americans feel they can get better discounts online than they can in-store, and those aged 18-34 (81%) and 35-54 (75%) are more likely than those ages 55+ (62%) to agree. Generally speaking, a majority of Americans say they’re seeing higher prices in-store. 

And that’s without even getting to other hitches in the experience, like out-of-stock merchandise or over-eager salespeople. (Earlier this year, in What the Future: Shopping, we found that 83% of U.S. adults say they don’t want salespeople to bother them unless they approach the salesperson first. Fair enough). 

Meanwhile, the 18-34 cohort is still more optimistic than older shoppers about the future of e-commerce: 67% think it will be easier to try products virtually in the next five years, and 63% say they often or sometimes purchase products that they’ve discovered via social media.  

But while “online channels can provide shoppers with a greater variety and discount opportunities – not to mention the convenience of buying wherever, whenever – we still consistently see that physical retail environments have an important role to play in the journey across categories,” says Zach Sanders, a vice president with Ipsos’ shopper insights team.

Or, in the words of one Club Z member: "The mall is better just because there's eight million stores right there and like, you can buy almost anything—five seconds after buying a shirt you can be buying cookies and you don't have to wait for delivery...it's all just there. I also like the people and the energy." 

But, they continued: "That's about the only reason I would choose the mall over online."

More insights from this wave of the Ipsos Consumer Tracker:

Perceived lack of benefits is the biggest barrier to generative AI adoption

Most Americans tip, and think they tip enough

The Ipsos Care-o-Meter: What does America know about vs. what does America care about?