Colliers: Stores to account for two-thirds of retail spending through 2030
Physical stores are expected to continue to account for the majority of retail spending in the near future, with Gen Z playing an increasingly large role.
A new report from commercial real estate services firm Colliers reveals that every generation is projected to make most retail purchases in stores through 2030, with physical locations capturing roughly two-thirds of spending. More than half of consumers cite competitive prices (54.4%) and readily available products (53.4%) as key reasons for choosing physical stores over online shopping.
Millennials will remain the largest-spending generation through 2030, Colliers noted, although Gen Z is projected to add approximately $743 billion in spending between 2025 and 2030, increasing its share of U.S. retail and foodservice spending from 13.1% to 20.8%.
The report found that nearly 64% of Gen Z consumers value off-screen experiences. The generation is also 23% more likely than average to visit a mall.
Browsing was the primary reason for their most recent store visit for 20.3% of Gen Alpha and 19.4% of Gen Z consumers, compared with 13.3% of consumers overall.
“Younger shoppers often enter stores to browse and discover products, while older consumers place greater value on finding what they need and getting knowledgeable advice,” said Anjee Solanki, national director of retail services & practice groups, U.S., at Colliers. “Those differences have practical implications for tenant selection, store layouts and services. Understanding what brings each generation into a store can help landlords and retailers create destinations that encourage repeat visits.”
[READ MORE: Colliers: National retail vacancy rate hits 4.3% in Q3]
Additional highlights from Colliers’ "The Next Dollar: Generational Spending Shifts Reshaping Retail Real Estate” report include the following:
•Gen Z is 27% more likely than the average American to use artificial intelligence tools frequently, with 7.4% of Gen Z and 8.6% of millennials already citing AI-assisted discovery as a way they find new brands.
•Foodservice spending is forecast to grow 32.6% through 2030, with beauty and personal care expected to rise 19.5%.
•Nearly 26% of Gen Alpha and 24% of Gen Z consumers discovered a new brand through social posts or videos from people they follow.
•Nine-in-10 Gen Alpha consumers influence household purchases, and 70% say adults act on their recommendations.
“Understanding how to capture shoppers across generations has remained one of the biggest challenges that retailers face,” said Nicole Larson, senior manager of national retail research at Colliers. “For retailers and property owners, the opportunity is to combine the convenience and reliability shoppers expect with the discovery, experiences and social connections that bring them back.”
