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Malls have rebounded thanks to an unlikely source: Gen Z

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Malls have rebounded thanks to an unlikely source: Gen Z

Gen Z hasn’t crossed over into the metaverse just yet.

Retail experts say these young shoppers have helped malls bounce back after the downturn brought on by the pandemic, in part because the digital space has turned Gen Z into a generation that expects instant gratification. The immediacy of touching, trying out and buying products may be the thing driving them to physical stores.

“This digitally savvy generation is used to having things immediately that they can download, access, watch,” said USC Marshall School of Business Assistant Professor Stephanie Tully. “And so from that perspective, the desire to get physical products immediately makes sense and would explain interest in brick-and-mortar.”

Gen Z — people from the ages of 16 to 26 — prefer in-person as much as online shopping, if not more, according to a 2023 report by the International Council of Shopping Centers. According to the trade group, about 97% of survey respondents said they shop at brick-and-mortar stores; 95% said they shop online for the convenience.

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“Gen Z shoppers are bringing back the mall shopping center experience,” said Kristin Grove, senior vice president of national retail leasing at the global real estate firm JLL. “They want a sense of community. They want to bridge the gap between the social media that they’re doing, and meet and shop in-person.”

The trade group’s study didn’t inquire about other generations’ shopping habits. But a 2022 report by the marketing agency CM Group, now Marigold, and the retail consulting group F’inn found that 47% of Gen Z respondents said they prefer to shop in store over online — more than any other generation.

“Despite being the first digitally native generation, virtually all Gen Z customers shop in-store and prefer physical retail at similar rates to previous generations,” Ali Esmaeilzadeh, executive vice president at Brookfield Properties, said about shoppers at that company’s Glendale Galleria.

There is good reason for malls to bank on Gen Z, which makes up 40% of global consumers with spending power clocking in at $360 billion.

For 23-year-old Nicole Tan of West Hollywood, online shopping is for browsing while in-person shopping is for buying.

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“I like to try things on,” she said as a song from the K-pop group New Jeans played in the background at the Westfield Century City shopping center. “If I see ads on social media and there are sales online, I’d maybe buy stuff online, but I usually like to shop in-store.”

Teens have long been the lifeblood of malls, with films such as “Fast Times at Ridgemont High” and “Clueless” depicting shopping centers as a beehive of excitement and activity. But the popularity of online shopping and recent economic turmoil took a toll, with many retail centers either closing altogether, being converted into office space or apartments or taking on unconventional tenants such as grocery stores.

With the easing of pandemic restrictions and the slowing of e-commerce, some malls have been revived by targeting teens and young shoppers who want more than just a place to spend money: a place to hang out, dine and meet friends.

And then there is the loneliness factor.

“There’s a lot of data showing that Gen Z is a particularly lonely generation and that it needs more social interactions,” Tully said. “[Gen Z] would benefit probably more so than other generations from going out and having those experiences in-person.”

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According to the International Council of Shopping Centers survey, 60% of Gen Z respondents said they would rather spend their money on experiences than material items, which means that refining the in-person shopping experience is front of mind for retailers.

Westfield Century City and South Coast Plaza in Costa Mesa, among other major Southern California malls, are focused on maximizing “hang time,” Grove said — the amount of time customers spend there.

“It is usually a combination of not just retail … but also great food and beverages and opportunities to do things like [take care of] daily needs,” she said. “You’re multitasking and doing some other things, not just shopping.”

Louis Schillace, senior general manager of Westfield Century City, said that in addition to shopping outlets, the mall houses a gym, an escape room, movie theaters and fine dining restaurants — keys to attracting diverse visitors.

“When you think about Gen Z and how they use the space, it gives them another opportunity to choose this space as their place to go for a night out,” he said.

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Tan, who works at a talent agency across the street from Westfield Century City, said she often goes there not to shop, but to grab dinner with a co-worker or go for a walk.

“I do more leisure non-shopping things at the mall,” she said.

About 70% of Gen Z survey respondents said that retail centers and stores offer fun places to gather, according to the ICSS report.

The malls that are thriving have the financial resources to reinvest in and renovate their spaces to meet the evolving demands of today’s shoppers, according to a 2023 Coresight Research report. And malls that cannot make those investments are suffering for it, experts say.

Shuttered stores populate the Puente Hills Mall, best known as the Twin Pines Mall from the 1985 movie “Back to the Future,” in the San Gabriel Valley. And the University of California recently announced plans to acquire the former Westside Pavilion, once a popular L.A. mall that was later converted to office space.

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Tully said turning malls into multipurpose destinations where Gen Z flocks will become increasingly important for their survival as online retailers offer shipping, delivery and return options that could disincentivize people from going to the mall to shop.

“There could be drones that deliver things to us,” she said. “Who knows what is going to transform with AI? But one thing you will not be able to have [delivered] are those [in-person] types of experiences.”

Successful shopping centers also must bring in the kinds of brands that are trendy among Gen Z shoppers, as well as socially and environmentally conscious retail stores those customers are likely to support, Grove said.

Gentle Monster — a South Korean sunglasses brand that grabbed the attention of Gen Z in recent years thanks to collaborations with the likes of K-pop superstar Jennie of Blackpink — opened a boutique at South Coast Plaza in late 2022.

Hundreds of shoppers flocked to the opening of America’s first physical store of Princess Polly, an Australian fast fashion boutique popular among Gen Z and millennials, at Westfield Century City in September 2023.

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“When we open a store like Princess Polly and we see the reaction, it was clearly generational,” Schillace said. “When we saw the lines of 500 Gen Z-ers waiting for the doors to open, the connection was there.”

More than half of Gen Z survey respondents said they were interested in supporting brands that prioritized mental health, according to the ICSS report. About 47% said they cared about brands that address sustainability and racial and gender equity.

“I try to shop small, independent brands or brands in line with my ethos,” Tan said.

Brands such as Victoria’s Secret and Abercrombie and Fitch went through highly publicized reckonings over body and racial inclusivity in the 2010s as maturing Gen Z students watched from their various social media platforms. As these legacy brands undergo major rebranding to appeal to the new generation of shoppers, those preaching body positivity and diversity such as Fenty Beauty, American Eagle Outfitters Inc.’s Aerie brand and Skims have found commercial success.

“I think that’s all attributable to a really educated new generational shopper,” Grove said. “That’s the future.”

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WGA cancels Los Angeles awards show amid labor strike

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WGA cancels Los Angeles awards show amid labor strike

The Writers Guild of America West has canceled its awards ceremony scheduled to take place March 8 as its staff union members continue to strike, demanding higher pay and protections against artificial intelligence.

In a letter sent to members on Sunday, WGA West’s board of directors, including President Michele Mulroney, wrote, “The non-supervisory staff of the WGAW are currently on strike and the Guild would not ask our members or guests to cross a picket line to attend the awards show. The WGAW staff have a right to strike and our exceptional nominees and honorees deserve an uncomplicated celebration of their achievements.”

The New York ceremony, scheduled on the same day, is expected go forward while an alternative celebration for Los Angeles-based nominees will take place at a later date, according to the letter.

Comedian and actor Atsuko Okatsuka was set to host the L.A. show, while filmmaker James Cameron was to receive the WGA West Laurel Award.

WGA union staffers have been striking outside the guild’s Los Angeles headquarters on Fairfax Avenue since Feb. 17. The union alleged that management did not intend to reach an agreement on the pending contract. Further, it claimed that guild management had “surveilled workers for union activity, terminated union supporters, and engaged in bad faith surface bargaining.”

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On Tuesday, the labor organization said that management had raised the specter of canceling the ceremony during a call about contraction negotiations.

“Make no mistake: this is an attempt by WGAW management to drive a wedge between WGSU and WGA membership when we should be building unity ahead of MBA [Minimum Basic Agreement] negotiations with the AMPTP [Alliance of Motion Picture and Television Producers],” wrote the staff union. “We urge Guild management to end this strike now,” the union wrote on Instagram.

The union, made up of more than 100 employees who work in areas including legal, communications and residuals, was formed last spring and first authorized a strike in January with 82% of its members. Contract negotiations, which began in September, have focused on the use of artificial intelligence, pay raises and “basic protections” including grievance procedures.

The WGA has said that it offered “comprehensive proposals with numerous union protections and improvements to compensation and benefits.”

The ceremony’s cancellation, coming just weeks before the Academy Awards, casts a shadow over the upcoming contraction negotiations between the WGA and the Alliance of Motion Picture and Television Producers, which represents the studios and streamers.

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In 2023, the WGA went on a strike lasting 148 days, the second-longest strike in the union’s history.

Times staff writer Cerys Davies contributed to this report.

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Commentary: The Pentagon is demanding to use Claude AI as it pleases. Claude told me that’s ‘dangerous’

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Commentary: The Pentagon is demanding to use Claude AI as it pleases. Claude told me that’s ‘dangerous’

Recently, I asked Claude, an artificial-intelligence thingy at the center of a standoff with the Pentagon, if it could be dangerous in the wrong hands.

Say, for example, hands that wanted to put a tight net of surveillance around every American citizen, monitoring our lives in real time to ensure our compliance with government.

“Yes. Honestly, yes,” Claude replied. “I can process and synthesize enormous amounts of information very quickly. That’s great for research. But hooked into surveillance infrastructure, that same capability could be used to monitor, profile and flag people at a scale no human analyst could match. The danger isn’t that I’d want to do that — it’s that I’d be good at it.”

That danger is also imminent.

Claude’s maker, the Silicon Valley company Anthropic, is in a showdown over ethics with the Pentagon. Specifically, Anthropic has said it does not want Claude to be used for either domestic surveillance of Americans, or to handle deadly military operations, such as drone attacks, without human supervision.

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Those are two red lines that seem rather reasonable, even to Claude.

However, the Pentagon — specifically Pete Hegseth, our secretary of Defense who prefers the made-up title of secretary of war — has given Anthropic until Friday evening to back off of that position, and allow the military to use Claude for any “lawful” purpose it sees fit.

Defense Secretary Pete Hegseth, center, arrives for the State of the Union address in the House Chamber of the U.S. Capitol on Tuesday.

(Tom Williams / CQ-Roll Call Inc. via Getty Images)

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The or-else attached to this ultimatum is big. The U.S. government is threatening not just to cut its contract with Anthropic, but to perhaps use a wartime law to force the company to comply or use another legal avenue to prevent any company that does business with the government from also doing business with Anthropic. That might not be a death sentence, but it’s pretty crippling.

Other AI companies, such as white rights’ advocate Elon Musk’s Grok, have already agreed to the Pentagon’s do-as-you-please proposal. The problem is, Claude is the only AI currently cleared for such high-level work. The whole fiasco came to light after our recent raid in Venezuela, when Anthropic reportedly inquired after the fact if another Silicon Valley company involved in the operation, Palantir, had used Claude. It had.

Palantir is known, among other things, for its surveillance technologies and growing association with Immigration and Customs Enforcement. It’s also at the center of an effort by the Trump administration to share government data across departments about individual citizens, effectively breaking down privacy and security barriers that have existed for decades. The company’s founder, the right-wing political heavyweight Peter Thiel, often gives lectures about the Antichrist and is credited with helping JD Vance wiggle into his vice presidential role.

Anthropic’s co-founder, Dario Amodei, could be considered the anti-Thiel. He began Anthropic because he believed that artificial intelligence could be just as dangerous as it could be powerful if we aren’t careful, and wanted a company that would prioritize the careful part.

Again, seems like common sense, but Amodei and Anthropic are the outliers in an industry that has long argued that nearly all safety regulations hamper American efforts to be fastest and best at artificial intelligence (although even they have conceded some to this pressure).

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Not long ago, Amodei wrote an essay in which he agreed that AI was beneficial and necessary for democracies, but “we cannot ignore the potential for abuse of these technologies by democratic governments themselves.”

He warned that a few bad actors could have the ability to circumvent safeguards, maybe even laws, which are already eroding in some democracies — not that I’m naming any here.

“We should arm democracies with AI,” he said. “But we should do so carefully and within limits: they are the immune system we need to fight autocracies, but like the immune system, there is some risk of them turning on us and becoming a threat themselves.”

For example, while the 4th Amendment technically bars the government from mass surveillance, it was written before Claude was even imagined in science fiction. Amodei warns that an AI tool like Claude could “conduct massively scaled recordings of all public conversations.” This could be fair game territory for legally recording because law has not kept pace with technology.

Emil Michael, the undersecretary of war, wrote on X Thursday that he agreed mass surveillance was unlawful, and the Department of Defense “would never do it.” But also, “We won’t have any BigTech company decide Americans’ civil liberties.”

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Kind of a weird statement, since Amodei is basically on the side of protecting civil rights, which means the Department of Defense is arguing it’s bad for private people and entities to do that? And also, isn’t the Department of Homeland Security already creating some secretive database of immigration protesters? So maybe the worry isn’t that exaggerated?

Help, Claude! Make it make sense.

If that Orwellian logic isn’t alarming enough, I also asked Claude about the other red line Anthropic holds — the possibility of allowing it to run deadly operations without human oversight.

Claude pointed out something chilling. It’s not that it would go rogue, it’s that it would be too efficient and fast.

“If the instructions are ‘identify and target’ and there’s no human checkpoint, the speed and scale at which that could operate is genuinely frightening,” Claude informed me.

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Just to top that with a cherry, a recent study found that in war games, AI’s escalated to nuclear options 95% of the time.

I pointed out to Claude that these military decisions are usually made with loyalty to America as the highest priority. Could Claude be trusted to feel that loyalty, the patriotism and purpose, that our human soldiers are guided by?

“I don’t have that,” Claude said, pointing out that it wasn’t “born” in the U.S., doesn’t have a “life” here and doesn’t “have people I love there.” So an American life has no greater value than “a civilian life on the other side of a conflict.”

OK then.

“A country entrusting lethal decisions to a system that doesn’t share its loyalties is taking a profound risk, even if that system is trying to be principled,” Claude added. “The loyalty, accountability and shared identity that humans bring to those decisions is part of what makes them legitimate within a society. I can’t provide that legitimacy. I’m not sure any AI can.”

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You know who can provide that legitimacy? Our elected leaders.

It is ludicrous that Amodei and Anthropic are in this position, a complete abdication on the part of our legislative bodies to create rules and regulations that are clearly and urgently needed.

Of course corporations shouldn’t be making the rules of war. But neither should Hegseth. Thursday, Amodei doubled down on his objections, saying that while the company continues to negotiate and wants to work with the Pentagon, “we cannot in good conscience accede to their request.”

Thank goodness Anthropic has the courage and foresight to raise the issue and hold its ground — without its pushback, these capabilities would have been handed to the government with barely a ripple in our conscientiousness and virtually no oversight.

Every senator, every House member, every presidential candidate should be screaming for AI regulation right now, pledging to get it done without regard to party, and demanding the Department of Defense back off its ridiculous threat while the issue is hashed out.

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Because when the machine tells us it’s dangerous to trust it, we should believe it.

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Why companies are making this change to their office space to cater to influencers

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Why companies are making this change to their office space to cater to influencers

For the trendiest tenants in Hollywood office buildings, it’s the latest fad that goes way beyond designer furniture and art: mini studios

To capitalize on the never-ending flow of stars and influencers who come through Los Angeles, a growing number of companies are building bright little corners for content creators to try products and shoot short videos. Athletic apparel maker Puma, Kim Kardashian’s Skims and cheeky cosmetics retailer e.l.f. have spaces specifically designed to give people a place to experience and broadcast about their brands.

Hollywood, which hasn’t historically been home to apparel companies, is now attracting the offices of fashion retailers, says CIM Group, one of the neighborhood’s largest commercial property landlords.

“When we’re touring a space, one of the first items they bring up is, ‘Where can I build a studio?’” said Blake Eckert, who leases CIM offices in L.A.

Their studio offices also serve as marketing centers, with showrooms and meeting spaces where brands can host proprietary events not open to the public.

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“For companies where brand visibility is really important, there is a trend of creating spaces that don’t just function as offices,” said real estate broker Nicole Mihalka of CBRE, who puts together entertainment property leases and sales.

Puma’s global entertainment marketing team is based in its new Hollywood offices, which works with such musical celebrity partners as Rihanna, ASAP Rocky, Dua Lipa, Skepta and Rosé, said Allyssa Rapp, head of Puma Studio L.A.

Allyssa Rapp, director of entertainment marketing at Puma, is shown in the Puma Studio L.A. The company keeps a closet full of Puma products on hand to give VIP guests. Visits to the studio sanctum are by invitation only, though.

(Kayla Bartkowski / Los Angeles Times)

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Hollywood is a central location, she said, for meeting with celebrities, stylists and outside designers, most of whom are based in Los Angeles.

The office is a “creation hub,” she said, where influencers can record Puma’s design prototyping lab supported by libraries of materials and equipment used to create Puma apparel. The company, founded in 1948, is known for its emblematic sneakers such as the Speedcat and its lunging feline logo, and makes athletic wear, accessories and equipment.

Puma’s entertainment marketing team also occupies the office and sometimes uses it for exclusive events.

“We use the space as a showroom, as a social space that transforms from a traditional workplace into more of an experiential space,” Rapp said.

Nontraditional uses include content creation, sit-down dinners, product launches, album listening parties and workshops.

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“Inviting people into our space and being able to give them high-touch brand experiences is something tangible and important for them,” she said. “The cultural layer is really important for us.”

The company keeps a closet full of Puma products on hand to give VIP guests. Visits to the studio sanctum are by invitation only, though. There’s no retail portal to the exclusive Hollywood offices.

Puma shoes are on display in the Puma Studio L.A.

Puma shoes are on display in the Puma Studio L.A.

(Kayla Bartkowski / Los Angeles Times)

Puma is also positioning its L.A studio as a connection point for major upcoming sporting events coming to Los Angeles, including the World Cup this summer, the 2027 Super Bowl and 2028 Olympics.

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In-office studios don’t need to be big to be impactful, Mihalka said. “These are smaller stages, closer to green screen than a massive soundstage.”

Social media is the key driver of content created by most businesses, which may set up small booth-like stages where influencers can hawk hot products while offering discounts to people watching them perform.

Bigger, elevated stages can accommodate multiple performers for extended discussions in front of small audiences, with towering screens behind them to set the mood or illustrate products.

Among the tricked-out offices, she said, is Skims. The company, which is valued at $5 billion, is based in a glass-and-steel office building near the fabled intersection of Hollywood Boulevard and Vine Street.

The fashion retailer declined to comment on the studio uses in its headquarters, but according to architecture firm Odaa, it has open and private offices, meeting rooms, collaboration zones, photo studios, sample libraries, prototype showrooms, an executive lounge and a commissary for 400 people.

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Pieces of a shoe sit on a workbench in the Puma Studio L.A.

Pieces of a shoe sit on a workbench in the Puma Studio L.A.

(Kayla Bartkowski / Los Angeles Times)

The brands building studios typically want to find the darkest spot on the premises to put their content creation or podcast spaces, Eckert said, where they can limit outside light and sound. That’s commonly near the center of the office floor, far from windows and close to permanent shear walls that limit sound intrusion.

They also need space for green rooms and restrooms dedicated to the talent.

Spotify recently built a fancy podcast studio in a CIM office building on trendy Sycamore Avenue that is open by invitation-only to video creators in Spotify’s partner program.

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“Ambitious shows need spaces that support big ideas,” Bill Simmons, head of talk strategy at Spotify, said in a statement. “These studios give teams room to experiment and keep pushing what’s possible.”

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