Gen Z shopping at malls rather than online

Editor’s note: This is the second story in a three-part CNBC series about the future of U.S. shopping malls, as developers transform the spaces to add new retailers, experiences and even apartments. Read the first part here.

Whether she’s buying a gift or a new outfit, Lindsey Hyams’ shopping trip usually starts online.

But instead of hitting the “buy” button, the 23-year-old Marlboro, New Jersey, resident said she often heads to the mall to make her purchases.

“It’s actually more convenient for me to just go to the store, try on the item,” she said. “If it doesn’t fit, I can just return it right then and there. You know, instead of having to go to UPS, send it back, waiting another five to seven business days.”

Hyams, who works in social media and marketing, illustrates one of the traits of Gen Z that may be surprising. The tech-savvy teens and twenty-somethings of this generation shop in stores more than millennials and Gen X and about as much as their baby boomer grandparents, according to a survey by the ICSC, a mall industry group.

Gen Z plans to shop more in stores than online this holiday season, too. Nearly 63% of Gen Z respondents said they plan to make holiday purchases at physical stores, according to an annual survey by consulting firm EY. Only about 50% said they would make purchases on retailers’ websites and apps during the season, lower than any other generation besides baby boomers.

Those up-and-coming spenders — who seek social time with friends, a quicker way to get what they want, and experiences to post on social media — have become a critical market for malls, as department store anchors struggle to survive and older shoppers rely more on e-commerce. Malls have added new brands and entertainment options, such as restaurants and rock-climbing walls, as legacy players such as Macy’s and JCPenney shrink and others such as Lord & Taylor and Sears have disappeared.

As those stores close, retailers are moving to appeal to younger shoppers. Australian-based online-only apparel retailer Princess Polly has opened its very first stores in U.S. shopping centers. Longtime mall staple Bath & Body Works added “scent bars” and video content to some of its locations to cater to Gen Z. And Abercrombie & Fitch-owned chain Hollister has thrown events at its stores tailored to younger consumers, including pop-up concerts and autograph signings.

Mall owners have stepped up efforts to reach Gen Z, too. Simon Property Group, the country’s biggest mall owner, launched a marketing campaign this fall, titled “Meet Me @the mall.” The ads, which are running on websites and apps including YouTube, TikTok and Netflix, tap into ’80s nostalgia with young adults dancing and roller…