Simon Malls, Refinery29 Team Up To Tempt Elusive Millennial Demographic

Style Festival is essentially a music and fashion festival at the mall, crafted and curated by Refinery29 to appeal to its online community.

Combining Bricks And Lifestyle Kicks

The Refinery29 digital media platform for women has over 21 million monthly visitors and 1.9 million email subscribers; it includes channels for fashion, beauty, living, wellness, entertainment, local, news and shopping.

The Style Festival events are intended to create a physical presence, "bringing Refinery29 […] to life in the world of retail, and giving mall shoppers new ways to shop major brands alongside local, emerging designers."

Notably, "70 percent of millennial women view shopping as a form of entertainment," according to Simon.

Related Link: Millennials Faring The Best Financially, Says Bankrate

Style Festival: Big Picture

According to the joint release, these are the planned events:

Why Millennials Are Crucial To Mall Success

For starters, Millennials are the largest age cohort in the U.S., as shown by the graph above, covering a wide swath from pre-teen to mid-thirties.

What Makes Millennials Different Consumers?

• Most notably, Millennials are the first generation to have access to the Internet during their formative years, according to a recent White House report.
• Sixty-one (61) percent attended college, as compared to just 46 percent of Baby Boomers.
• The oldest Millennials were just 27 when the Great Recession began in December 2007.
• Their early adult lives were partially shaped by the experiences of establishing careers when job opportunities were scarce.

Related Link: Mall Retailers And Investors Should Be Excited

In order for owners of well-located Class-A malls to thrive today and in the future, they must constantly reinvent the shopping experience to keep it relevant to the burgeoning millennial demographic.

Investor Takeaway

Millennial buying power will only increase over time as student loans are finally repaid and this cohort continues to take over management and executive positions currently occupied by Baby Boomers.

Commenting on a recent REITWeek Investor Presentation, R.W. Baird analyst Drew Babin shared, "Millennial workers are seeing a 3 percent uptick in job growth versus an overall positive trend of 2.25 percent." He also noted that this demographic is "naturally inclined" to rent as opposed to buy, boding well for apartment demand.

It is becoming increasingly clear that real estate landlords of all asset classes need to be aware of millennial preferences, and take into account their increasing economic impact when making decisions regarding locations, amenities and marketing channels.