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