Retail
June 2 2026
Gen Z is returning to shopping malls primarily for social connection, not to transact. Westfield Rise US research shows 73% of Gen Z consumers named the mall as their top hangout spot, and they are 10% more likely to discover new brands in a physical mall than on TikTok — treating it as an offline alternative to social media and
Arthur Zaczkiewicz
Gen Z is returning to shopping malls primarily for social connection, not to transact. Westfield Rise US research shows 73% of Gen Z consumers named the mall as their top hangout spot, and they are 10% more likely to discover new brands in a physical mall than on TikTok — treating it as an offline alternative to social media and a response to rising digital fatigue.
A new study reveals a fundamental cultural shift in how Generation Z connects and discovers products while revealing that the traditional shopping mall has become their modern “third space.”
The report, titled The Comeback of the Hangout, was jointly released by Westfield Rise US and Sunnie, a Gen Z-focused brand under Reese Witherspoon’s Hello Sunshine. Data from the research shows as young people fight rising social isolation, they are actively reclaiming physical spaces.
Apparently, the mall is the place to be. In fact, 73% of Gen Z respondents identified the mall as their top place to hang out with friends, while 72% said they would still visit even if they had no money to spend.
What Does Effective Mall Brand Activation Look Like for Gen Z?
This return to physical environments offers a major opportunity for retailers and brands trying to break through Gen Z’s digital fatigue, signaling that an effective marketing strategy now requires a concrete mall strategy. According to the study, physical spaces are heavily outperforming social media algorithms when it comes to authentic product discovery. Roughly 44% of respondents cited malls and in-store environments as the primary places they find brands they love.
Strikingly, young consumers are 10% more likely to discover a favored brand at a physical mall than they are on TikTok, treating the real-world retail landscape like an “offline group chat.”
How Should Retail Brands Respond to Gen Z’s Return to Physical Spaces?
Retail spaces are leaning heavily into this trend by transforming malls into high-energy, broadcast-ready cultural hubs rather than just rows of shops. Westfield Century City in Los Angeles, for example, has become the blueprint for this evolution, hosting massive, interactive brand activations like Apple TV fan experiences, immersive pop-ups with artists like Billie Eilish and high-tech digital canvases like The Centurion.
Executives from Westfield Rise US said in a statement that today’s youth demand participation over passive consumerism. By integrating augmented reality, live entertainment and exclusive co-creation spaces, physical retail environments are positioning themselves to capture lasting brand loyalty that digital spaces simply cannot replicate.
Related article: The New Retail Content: Curation, Connection, and the End of the Online versus Offline War
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