For the first time in years, the future of brick-and-mortar retail may hinge on a generation that grew up online. Gen Z consumers are emerging as the biggest new force in shopping, spending more freely and—perhaps unexpectedly—bringing malls back into the spotlight, according to The Wall Street Journal.
Citing NielsenIQ data, the Journal reports that Gen Z's retail spending is rising faster than that of any other generation and is on track to reach $12 trillion globally by 2030. It might feel like a flashback to the 1980s and 1990s, when a trip to the mall was the social event of the week—only now, the mall is competing not with movie theaters but with smartphones. According to data firm Circana, Gen Z allocates a larger portion of their discretionary income (post-tax earnings) to retail purchases than older shoppers.
Gen Z—those born between 1997 and 2012—are now between 14 and 29 years old. As the Journal notes, they may be young, but for retail property owners, that youth is a welcome development.
Cautious optimism began to bubble in mid-2025, when lenders signaled a renewed willingness to finance stabilized malls with solid cash flow, according to Trepp. Still, that confidence wasn't universal. Many shopping centers continued to face loan maturities, keeping the sector's recovery uneven. Higher sales volumes, however, can help offset higher borrowing costs and that's where Gen Z's spending could make a difference.
A lack of enthusiasm among millennials once left many malls struggling, but fresh data suggests a meaningful rebound. Placer.ai reports that U.S. malls saw a surge in visitors early in 2026. Though some of that was driven by the returns season, the strongest growth was concentrated in the first two weeks of January, indicating a broader renewal of foot-traffic momentum.
According to Circana, shoppers aged 18 to 24 accounted for 62% of general merchandise purchases made in stores—far outpacing the 52% of shoppers aged 25 and older who bought products in person.
Perhaps the distinction lies in experience. Gen Zers grew up in a digital world and came of age during pandemic lockdowns. These young adults and teens see an outing to the mall as something new again—a place to shop, socialize and snack their way through the food court rather than scroll from home.
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