Our recent exploration of sensory design in retail highlighted how brands are using multisensory experiences to create memorable and immersive shopping environments. New data from our Gen Z Consumer Pulse Survey reveals that this generation actively values thoughtfully designed, calming retail spaces that foster a more engaging and tactile shopping experience. Supporting this trend, MG2’s “Gen Z is Evolving: Their Search for Meaning, Connection, and the Brands That Get It” found that in-store shopping is on the rise among this demographic — with 2 out of 5 Gen Z consumers expected to shop mostly or entirely in-store in 2025, up from 1 in 3 in 2023.

The Comfort-First Generation

Perhaps most telling: 43% of Gen Z respondents say they shop online specifically to avoid crowds and lines. This preference reflects more than convenience — it signals a generation accustomed to controlling their environment and social interactions through screens.

Having perfected the art of shopping from their phones during the pandemic, Gen Z now expects physical stores to offer what might be called “soothing shopping” environments. Seventy-seven percent prioritize bright, clean, and organized spaces, 64% value friendly and helpful staff and 50% want good music to create a welcoming atmosphere. These aren’t just preferences — they’re prerequisites for a generation that won’t tolerate chaotic, overwhelming retail experiences.

Beyond Shopping: Creating Destinations

The most successful retailers are transforming stores into experiential destinations that foster connection and invite Gen Z to help shape everything from product design to store layout. Fifty-five percent of Gen Z want social components, like cafés or snack bars, integrated into retail spaces, while 46% seek out product customization and personalization stations. Think Kith’s ice cream bars or Rivian’s zen-like showrooms or perhaps the most headline-grabbing example yet: Tesla’s new UFO-shaped diner and Supercharger hub in Los Angeles.

Blending retro charm with futuristic polish, the Tesla Diner turns the mundane act of charging a vehicle into a full-blown social-media-worthy experience. With roller-skating servers, robot kiosks, and open-air movie screens, it’s a prime example of how brands can tap into Gen Z’s desire for experience out of the everyday. Its opening highlights a broader trend: hospitality-infused retail designed not just for convenience, but for community and content creation.

Hospitality-infused retail makes perfect sense for a generation entering their prime earning years. As older Gen Z members gain purchasing power — particularly in higher-end fashion and lifestyle categories like Coach — brands that follow Apple’s lead in creating calm, consultative retail environments will capture their loyalty.

According to MG2’s Gen Z Survey, over 70% of Gen Z want to engage with the brands they love beyond content consumption. They want to be co-creators and collaborators in the brand journey, actively participating in store design, product customization and brand storytelling. 

Sustaining Brand Value

For Gen Z, sustainability isn’t just a brand value — it’s an expectation woven into every part of the retail experience. Nearly half of MG2’s respondents cite sustainable store design as a key driver of trust, signaling that purpose matters as much as aesthetics. Brands like Patagonia, Reformation, and Aesop are leading the way by utilizing reclaimed materials, reducing resource consumption, and aligning their physical spaces with environmental values. Retailers that embed sustainability into design and operations can build deeper, more meaningful connections with Gen Z. 

The Nostalgia Factor

Interestingly, there’s also a counter-movement toward nostalgia — or “nowstalgia,” as MG2 coined it — in retail experiences. Visual storytelling and immersive displays tap into Gen Z’s love of authenticity and sentimental references, transforming shopping from a transaction into a memorable, emotionally resonant experience. A great example is Simon Malls’ “Meet Me @themall™” campaign, which leans into ‘90s nostalgia to invite Gen Z and their families to rediscover communal shopping — reimagined with modern sensory design that prioritizes comfort over chaos.

The Bottom Line

For retailers, the message is clear: to attract the Gen Z shopper to your physical spaces, create environments that are calming rather than overwhelming. The generation that grew up with infinite digital choice won’t settle for anything less than thoughtfully designed, sensory-rich experiences that respect their need for both stimulation and serenity.

As we continue tracking how Gen Z reshapes retail expectations, one thing remains certain: the future belongs to brands that design spaces for restoration, not just commerce.