NRF’s Hot 25 Retailers list reflects the growing influence of Generation Z. And it likely won’t be the last list to do so.
NRF's Hot 25 Retailers ranks the nation’s fastest-growing retail companies.
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With Gen Z’s buying power expected to top $12 trillion in just five years, retailers like Daiso Sangyo (No. 13), MUJI (No. 14) and Five Below (No. 15) have made their way onto the list with the help of Gen Z and their younger siblings, often called Generation Alpha.
They’re also helping to reshape the American mall, with one survey finding they are as likely to shop at malls as their grandparents, the Baby Boomers.
That finding is driving a new trend in commercial real estate, “to take older malls and make them into Gen Z malls,” says David Marcotte, senior vice president of global retail and technology for Kantar. Kantar compiles the data for NRF’s annual ranking of retailers that posted the biggest growth in 2024.
Asian retail experiences like Daiso Sangyo and MUJI have proven popular with younger shoppers; one Asian publication called Daiso Sangyo “the” retailer for Gen Z and Alpha shoppers. For its part, MUJI appeals to the minimalistic style of Gen Z.
Both amp up their draw by including events which “generate enormous foot traffic at malls,” Marcotte says. “They’re creating the energy to make the mall come alive.”
Five Below has taken a different approach to growth, slightly aging as its typical buyer has. “They started by targeting tweens, but have expanded to reach young adults,” Marcotte says.
Uniqlo is another Gen Z favorite; its parent company, Fast Retailing, landed at No. 3 on the Hot 25. Fast Retailing is also parent to Theory and Helmut Lang, among others. But Uniqlo, in particular, has been increasingly adopted by Gen Z. That is in no small part due to a few products that went viral on TikTok and collections by artists and designers for that generation.
As Gen Z ages, more brands would be wise to learn from those who are doing well: creating a sense of adventure, offering social sharing-worthy exploration and aging along with the customer.
