In retail these days, it’s not power to all the people. It’s power to the teens, “tweens” and even younger kids.
Last year, U.S. teens alone spent nearly $130 billion on goods and services, and younger members of Generation Y (6- to 21-year-olds) are becoming heavier spenders than ever before.
That love of shopping among youngsters hasn’t been lost on Southern California retail developers, who are scrambling to reconfigure, redesign and rebuild malls to entice Gen Y consumers to stay longer and spend more money.
“The bottom line in retail is to survive. So you constantly have to change,” said Howard Wong, vice president of retail at Jones, Lang, LaSalle, a Los Angeles retail management and consulting firm.
The Glendale Galleria decided it would open a $2.5 million redesigned wing that caters exclusively to Gen Y shoppers. Called “The Zone,” it opened in July and features six new stores clustered together on the second floor, decorated in a bright aquarium theme.
To keep kids hanging around, the mall also built a lounge with comfortable circular couches. There are also computers where kids can log on and television sets that blare music videos.
The Galleria decided in late 1998 to develop the Zone inside the 250-store mall after noticing that Generation Y shoppers were spending an average of $2,700 to $3,000 a year there.
Research also showed that the Galleria’s Gen Y visitors ranked shopping as one of their favorite pastimes, with some reporting more than 50 visits a year to the shopping center.
The Galleria’s Zone concept was established about the same time as the Mills Corp. opened The Block in Orange, an 811,000-square-foot, $165-million shopping center in Orange County that has “kids” written all over it.
The mall has been closely scrutinized by developers throughout Southern California to see if its appeal to the younger generation will be profitable. Among its offerings are the county’s biggest multiplex cinema center. There are also entertainment centers like GameWorks and Dave & Buster’s.
Spending their allowance
People wondered if Mills Corp. was a little crazy when it went with Vans Skate Park in the middle of its new mall. But kids keep coming, drawn by its vertical ramp, two deep skating bowls that look like empty swimming pools, and plenty of hip kids hanging around.
Last spring, the mall announced it would add a nightclub and a bowling alley to attract more young consumers.
At Glendale Galleria, executives said it was difficult at first to sell its Gen Y concept to tenants, sponsors and partners, but they knew it was important.
“The impetus for the idea is that the Generation Y consumers were emerging as a significant demographic, nationally,” said Cindy Chong, the Galleria’s vice president and general manager. “While we had them as our customers, we knew we could offer them an area where they feel comfortable, where they could spend that hard-earned money, such as their allowance or wages from a part-time job.”
The company spent all of 1999 developing the Zone concept by interviewing students at two high schools and two middle schools who contributed design ideas and other suggestions.
“Teens said they like to socialize and take a break while they’re shopping. So we built a lounge with computer stations that have Internet access,” Chong noted.
In addition, stores such as Sketchers USA, Vans Shoes, No Fear, Boarders Sports for skateboarders, Juxtapose and Premium have set up shop at the Zone.
Checking it out
Galleria officials said a number of executives with other mall developers have visited The Zone to check out the concept and see if they want to copy it. Last month, the British Broadcasting Corp. sent a film crew to do a documentary piece on it and its young clientele.
Elsewhere in L.A. County, a number of retailers have revamped their merchandise to pull in Gen Y foot traffic. Others have gone even further by setting aside whole areas for teens and tweens.
Retailers like Skinmarket, which sells moderately priced cosmetics and fashion accessories, are embracing the teen market, adding amenities that make it easier for the kids to hang around longer, almost like a slumber party.
Tony Hirsch, founder of Skinmarket, set up his stores so they look like a girl’s bedroom. They are decorated in funky colors and contain makeup-application stations and seating areas where girls can gossip, read magazines or listen to music.
The Skinmarket launched its first store at the Beverly Center in Los Angeles nearly two years ago.
But with the ever-changing market and trends, retailers have to be ahead of the curve and ready to quickly change the mix of their stores to accommodate the ever-changing tastes of the youth market.
“You have to be careful in putting too much emphasis on that market,” cautioned Howard Wong. “Eventually it will get old.”
