Aligning Retail Spaces with Evolving Expectations of a New Generation

By Christina Faley, WELL AP, IIDA | June 25, 2025

Despite the year-over-year growth of the retail sector for the period of 2022-2024, brick-and-mortar investors, developers and landlords must navigate shifting consumer behaviors, the continued rise of e-commerce as well as waves of chain store closures. This complex set of continuously evolving challenges sparks questions about where to invest and the need for a more strategic, experience-driven approach to physical retail spaces.

One of the most notable shifts is the changing expectations of younger consumers, particularly Generation Z. While this generation values in-person retail experiences more than some of their predecessors, their expectations are significantly higher. They reject many of the trends that have dominated the industry in recent years, including fast fashion; generic, cookie-cutter designs; and superficial photo ops. Instead, they demand a more authentic expression that aligns with their personal values and identity. Having grown up with unparalleled access to digital content, their worldview and preferences are highly individualized. Unlike previous generations, who shared common cultural touchpoints through traditional TV, music, and shared experiences and were more accepting of generic environments, Gen Z wants brands – and by extension, retail spaces – that speak to them directly.