By many accounts, the generation that is now age 6 to 24 will be among the top retail spenders in the coming decade. Coming out of the pandemic, Gen Z has roughly $150 billion in spending power, compared with an estimated $200 billion for Millennials, according to McKinsey & Co.

What to supply in advance of Gen Z demand

“Because of all the Zooms and the home schooling, how much more do you want to sit behind a computer?” said Greg Tannor, executive vice president and principal with Lee & Associates in New York. “They really want to do something, and part of that is going shopping. So there is a pent-up demand coming out of hibernation and getting back to life. It is kind of like the birth of a new generation.”

How will Gen Z spend all that money coming out of the pandemic? According to an ICSC Coronavirus Consumer Survey of 1,003 U.S. consumers conducted between March 19 and 21, 37 percent of Gen Zers expect their future spending on leisure and entertainment activities to increase compared with pre-pandemic, 36 percent expect spending on food-and-beverage services to rise, 35 percent anticipate spending more on fitness and workout activities, 34 percent plan to increase spending on health and beauty products and 30 percent expect their spending on electronics to go up compared with their pre-pandemic spending.

Malls with larger and more varied assortments of leisure and entertainment venues would entice 32 percent of Gen Zers to visit sooner or more frequently, according to the survey. Larger and more varied assortments of all types of food-and-beverage options would bring in 24 percent of the age group sooner or more frequently. The same percentage are attracted by personal care services, and 23 percent of Gen Zers say they’re more likely to visit sooner or more frequently if the center has a centralized place to pick up merchandise ordered online. A larger number of small businesses or local merchants would entice 21 percent of Gen Zers sooner or more often.

When it comes to what products Gen Z will most embrace coming out of the pandemic, those retailers that best align with their values and embrace sustainability will top the list. “Gen Z is a little bit more anti-establishment with their values than, say, Boomer consumers, so a lot of times those retailers are kind of put between a rock and a hard place with having a message that is strong enough to appeal to Gen Z and create that community without alienating other consumers,” said Jasmine Glasheen, whose eponymous think tank helps retailers create content and content strategy.

Gen Z also is expected to be most attracted to experiential retailing. “The feeling that I am getting among Gen Z consumers is that they are eager for life as a whole, and retailers that can create something new and exciting in terms of an in-person experience are going to be the ones that Gen Z visits because, essentially, they feel as though they have missed out on a significant portion of their lives and they are really ready to move things forward,” Glasheen said.

Price also will be a determinant. “There is this really interesting, almost opposing or oppositional mindset for Gen Z where price is the driving factor. They are completely price driven, but they also care more about shopping sustainably than any other generation,” said Glasheen. Specifically, she notes fast-fashion retailers like H&M’s waterless denim line and China-based women’s clothing retailer Shein’s ecoconscious line of clothing.

The pandemic wounded Gen Z more deeply than other age groups

“There is a mental health crisis happening with this generation,” said Glasheen. “They did miss out on a significant portion either of their teenage years or young adulthood.” She added: “Just remember, for Gen Z, all of a sudden they saw these big scary things happen and essentially their lives put on hold because of the decision of their elders,” said Glasheen. “Since they are inherently distrustful against The Man and those decisions, there was almost a feeling of resentfulness there. That is why, during the pandemic, a lot of retailers started to offer mental health resources, help lines to call in to, livestreaming yoga or just really get real with those customers that were experiencing something that is kind of unparalleled.”

However, Gen Z is expected to rebound faster than other generations. “There is a feeling of optimism right now and an eagerness to rejoin society,” said Glasheen. Marcus & Millichap senior vice president and national director of retail Daniel Taub said, “When it comes down to their fundamental consumption in physical retail, you are seeing a pretty strong rebound back to where they were pre-pandemic.”

Will Gen Z return to the mall?

So will Gen Z return to the mall? The answer is … it depends on the mall. Glasheen recommends that malls look at local consumer data on how consumers are acting and what Gen Z is doing in that community. “There are certain communities that might want a skate park, there are others that might connect more with a local artist showcase, there are others that might connect more with sponsoring a baseball team, and I would understand that and create events that cater to that. I would also look at what local retailers Gen Z is actually patronizing in my area, and I would get them to create events.”

She notes that in her hometown of San Diego, many malls are holding flea markets in the parking lots and bringing in local retailers to sell their wares. “That creates that hybrid where Gen Z can actually start to hang out there again and have it as a source of pride, not just, ‘I am going to the mall because I don’t have anything better to do.’”

Additionally, the 2021 back-to-school season is approaching quickly, and this one will be different from years past. “There is definitely going to be some enthusiasm about that, but there is also going to be some anxiety and wariness,” said Glasheen.

She said: “When catering to next-gen consumers, retailers still have to be aware of how overwhelming this all is and not necessarily bulldoze over it but actually offer healing events and those type of hands-on resources to make them feel comfortable reengaging in life. Creating excitement and having those events is good, but also, I think it is important to acknowledge what has been going on because these are consumers that are really, again, wary of The Man and value straight talk. Gen Z likes it pretty raw.”