According to a new study at the Urban Land Institute, Gen Y shoppers aren’t shopping less at malls because they are shopping online. Rather, Gen Y shoppers are shopping less at malls because they are shopping at warehouse clubs and big box retailers.
Gen Y shoppers (those shoppers between 18 and 35) still like shopping in brick-and-mortar stores. In the study, half of the men surveyed and 70% of the women surveyed claimed to consider shopping a form of entertainment and something to be shared with friends and family. However, Gen Y customers are visiting discount stores and warehouse clubs almost three times as often as they are visiting a full-line department store. Big box retailers are also a destination for apparel for many Gen Y customers.
Based on the results of the survey, ULI (Urban Land Institute) recommends that in order for malls to attract Gen Y customers they should consider the following suggestions:
- Refresh interiors with modern updates like paint and lighting.
- Develop spots that facilitate social gathering (like food courts, restaurants, etc.)
- Increase the use of pop-up stores.
- Add specialty food providers.
- Incorporate movie theaters.
- Become pick-up points for merchandise ordered online.
Discussion Questions:
1. Where does Gen Y like to shop?
2. Should mall retailers be worried?
3. What percentage of your purchases of apparel, electronics, and other merchandise generally available in malls do you purchase online?
SOURCE: Tom Ryan, Retail Wire, May 20, 2013