Q&A: Designing retail spaces to attract Gen Z
As Gen Z’s spending power continues to rise, projected to surpass $12 trillion globally by 2030, the generation is redefining what physical retail looks and feels like.
Rather than abandoning brick-and-mortar, Gen Z is transforming it into a destination for connection, discovery and experience. For retailers and developers, this shift demands a new approach to design, one that blends digital influence with immersive, flexible and socially-driven environments.
In an interview with Chain Store Age, Christina Faley, retail studio director and managing associate at TPG Architecture, shared key strategies for creating retail spaces that resonate with Gen Z, from experience-driven programming to designing for the seamless interplay between online and in-store engagement.
Gen Z has recently been credited for reshaping the future of retail. What distinguishes this generation from others in how they engage with physical retail environments?
Unlike previous generations that were more accepting of standardized, one-size-fits-all environments, Gen Z expects retail spaces to reflect authenticity, individuality, and purpose. Having grown up with constant access to digital content, they have highly personalized preferences and gravitate toward brands and environments that align with their identity and values.
They’re less interested in passive consumption and more focused on connection, seeking retail experiences that feel intentional, culturally relevant, and worth the effort of visiting in person. Physical retail environments must be designed with thoughtful curation, meaningful interactions and purposeful storytelling.
There’s been a lot of discussion around “experience as the new anchor tenant.” How is this concept influencing the way retail spaces are programmed and designed today?
Experience is no longer an added layer — it’s becoming the foundation of how retail is conceived, transforming stores into destinations that offer meaningful interactions beyond the transaction. Limited edition collections, pop-ups, and collaborations, for instance, help create a sense of exclusivity that can drive foot traffic.
Product personalization moments, such as embroidery services for apparel, customizable sneaker laces, or signature scents, allow customers to become part of the brand’s story, strengthening their emotional connection through physical space. These types of activations not only deepen engagement but also create organic, shareable moments that extend the experience beyond the store itself.
Malls are re-emerging as social “third places.” What design strategies are most effective in encouraging visitors to linger, gather and connect?
Successful retail environments are embracing “third-place” principles by creating spaces that invite people to stay beyond the point of purchase. This includes integrating comfortable lounge seating, coffee bars and cocktail/mocktail bars into a store’s footprint, which invites people to linger longer, meet friends, and relax – fostering a brand experience that transcends the transactional.
Equally important is the broader context, locating stores within walkable, mixed-use environments and clustering like-minded brands to create a cohesive ecosystem. Activating outdoor connection points between storefronts or programming ancillary spaces to celebrate the stories these brands share with their clientele can help inspire the ‘third-place’ experience.
Bringing together and working in partnership with like- minded brands to curate intentional, mixed-use destinations bridges the gap between what consumers are craving but can't find online. Success in today's retail landscape hinges on the ability to holistically and authentically engage people through and around space, unlocking greater economic opportunity and incentive through shared storytelling.
Flexibility seems critical as trends evolve rapidly. How can retail environments be designed to meet this need?
For us, flexibility isn’t about making everything movable or temporary; it’s about building a system that can evolve without losing clarity. The strongest environments have a clear structure and strategic adjacencies with layers of adaptability built into how the space operates.
We’re designing modular fixture systems and creating zones that can shift between product, activation, and content without requiring a full reset. Ceiling infrastructure, lighting, and display strategies all need to support that flexibility from day one.
A key component in this is operational ease; if the team can’t quickly adapt the space, it doesn’t work. The goal is not constant change; it’s the ability to stay relevant over time while maintaining a strong, consistent point of view.
What are some successful strategies for engaging Gen Z shoppers?
Across our recent work, we’re seeing a shift towards more participatory retail, where customers are actively involved in the experience.
Customization and co-creation are key drivers, whether through product personalization or hands-on moments that allow customers to engage directly with the brand. Also, integrating education and live demonstrations as foundational elements of the store experience can be very effective.
These types of interactions create a stronger sense of ownership, are far more memorable than traditional merchandising, and ultimately deepen the connection between customer and brand.
How do you see Gen Z influencing the evolution of retail environments over the next five to 10 years, and what should developers and brands be doing now to stay ahead?
Retail is no longer competing simply with other stores; it’s competing with how people choose to spend their time. Visiting a store is a conscious decision, and that shift is accelerating how quickly retail environments need to evolve. What used to be a seven to 10 year refresh cycle is compressing. Brands can no longer rely on static environments; spaces need to feel current, relevant, and culturally in tune. A store that feels even a few years out of sync today risks becoming irrelevant far faster than it would have a decade ago.
This creates a challenge: designing spaces that respond to the current moment without becoming overly trend-driven. Flexibility can extend the life of a space, but the expectation for change isn’t going away — well-designed environments will need to refresh more frequently.
At the same time, Gen Z’s expectations will continue to evolve, and hot on their heels is Gen Alpha, who are already beginning to influence the market with an even stronger emphasis on immediacy and identity. For developers and brands, the focus should be on creating environments that can evolve while maintaining a clear identity. The most successful spaces will be those that stay relevant as they age — not just those that launch well.
