How Gen Z consumers and the 'trust economy' are changing the mall experience

The physical retail landscape is evolving, as a new generation of consumers seeks a different kind of shopping experience, according to Cushman & Wakefield.

In a July 14 release, the company highlighted that Gen Z consumers are leading the return of shoppers to stores. A 2023 survey of Gen Z shoppers by L.E.K. Consulting, a global consultancy firm, found that 64% of the group preferred in-store shopping, beating millennials, Gen X and baby boomers.

The shifting demographic coincides with the rise of the “trust economy”, where trust is the primary currency and the key differentiator for businesses. In today’s world, where businesses compete for users’ attention on social media, consumers are looking for brands they believe in.

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A large part of that credibility is being built and validated through customers’ experience in-store. “Consumers are forming opinions before they enter a store, which means the store has to deliver on a promise that has already been made online,” said Sona Aggarwal, managing director and head of retail sales and strategy for Asia Pacific at Cushman & Wakefield.

As a result, landlords and retailers are pushing to make physical stores multi-functional environments where brands “drive participation, storytelling and ongoing engagement with consumers”, she added.

Changes include rethinking mall tenant mix, leasing models, programming and spatial design. In Asia Pacific (Apac), retail pop-ups are also gaining prominence, generating around US$4.8 billion ($6.2 billion) in revenue in 2025, based on data from Market Intelo.

In the region, South Korea serves as a clear example of how the retail landscape is changing, with shopping destinations such as Myeongdong and Seongsu offering “experience-led ecosystems” that appeal to both domestic and international shoppers. “The integration

of beauty, wellness and cultural retail is changing how space performs, with stores designed to drive engagement and repeat visits rather than just transactions,” said Suki Kim, head of research, South Korea at Cushman & Wakefield.

Meanwhile, physical spaces in the luxury retail segment are also being reshaped by changing consumer profiles. Cushman & Wakefield projects that by 2040, Gen X and “Next Gen” (referring broadly to younger cohorts, including millennials, Gen Z and Gen Alpha) will make up 80% of the global ultra-high-net-worth population.

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These generations, whose purchasing decisions are shaped by global exposure and digital ecosystems, are increasingly seeking meaningful, experience-driven retail. This, in turn, is underpinning luxury retail environments that offer exclusivity and personalised interactions.

“Luxury brands are leading the way in relationship-driven clienteling, which is transforming the role of retail sales associates from transactional sellers into long-term personal advisors,” said Aggarwal. “This clienteling approach is directly reshaping storefronts as well, with high-end retailers increasingly carving out dedicated private suites.”