Many retailers are seeking to capture the spending power of Gen Z by investing in college towns and youth-dense trade areas, as well as leveraging celebrity- and influencer-driven pop-ups, according to a Placer.ai Retail Trends’ November report.
Expanding near college campuses has helped brands attract a higher share of young urban singles—a segment strongly aligned with Gen Z consumers. For example, Cava opened several locations near major universities and in college towns, boosting engagement with this demographic. Panda Express and Raising Cane’s, which already had a significant share of young urban singles six years ago, have continued to reinforce their audience by investing in college-adjacent locations. Target has expanded both small-format and large stores near universities, helping it grow its market share among this key segment, the report noted.
These trends suggest college towns will remain strategic growth markets, including for luxury brands such as Hermès.
“By making inroads in college towns and with Gen Z shoppers, brands can strengthen loyalty early and build durable market share that persists as these young adults move on from campus life,” Placer.ai said.
Retail engagement among Gen Z is increasingly driven by “cultural moments” that resonate with the cohort. Malls are capitalizing on this through temporary pop-ups featuring influencer collaborations and celebrity-led activations to attract young consumers. For instance, Pandora’s pop-up with brand ambassador girl group Katseye at The Grove last year led to a modest but significant increase in visits from young professionals and young urban singles during its first week, according to Placer.ai.
Similarly, Westfield Century City’s Taylor Swift x TikTok activation in October boosted foot traffic among young urban singles and young professionals. Fans could immerse themselves in sets from Swift’s viral “The Fate of Ophelia” music video, underscoring the star power driving these events.
In September, Ninja Kidz attended the grand opening of the Action Park at American Dream, while Salish Matters’ skincare pop-up drew crowds so large it had to be shut down. During these two event days, the mall’s shares of both young professionals and ultra-wealthy families increased substantially, demonstrating that well-executed pop-ups can attract both youthful and affluent family audiences.
Placer.ai noted that the success of these activations is likely to drive more short-term pop-ups among malls and individual brands in 2026 as retailers seek to maintain relevance with key demographic segments.
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