Gen Z & Experiential Retail: How Customization is Winning Back In-Store Shoppers

The retail landscape is undergoing a quiet shift. After a decade of prioritizing digital channels, businesses are increasingly recognizing the enduring appeal of in-person shopping, particularly among Gen Z consumers. But it’s not simply a return to traditional brick-and-mortar; it’s a reimagining of the experience, one that blends tactile engagement with the aesthetics of social media. Companies like Marine Layer and Abbode are leading this charge, demonstrating how experiential retail can drive both sales and brand loyalty.

Recent research from Adyen indicates that over 70% of 18- to 27-year-olds shop in physical stores at least once a week, a higher percentage than Baby Boomers (65%). More significantly, 57% of Gen Z views in-person shopping as an experience, compared to just 35% of older generations. This suggests a fundamental difference in how younger consumers approach retail – not merely as a transaction, but as a form of entertainment and self-expression.

The Appeal of “Granny Core” and Screen-Free Time

This preference for physical experiences aligns with broader trends among Gen Z. A NPR report highlights the growing popularity of “granny core” hobbies like knitting, as a way to disconnect from screens. Research from Talker too shows that Gen Z is more likely than older generations to intentionally designate screen-free time throughout the day. This desire for offline activities extends to shopping, where consumers seek tangible interactions and a break from the constant stimulation of the digital world.

Marine Layer’s Pop-Up Success

San Francisco-based apparel brand Marine Layer, founded in 2009, has successfully integrated experiential retail into its business model. Generating $200 million in annual revenue, the company operates over 50 stores across the U.S. Last year, Marine Layer experimented with pop-up shops designed to offer a highly personalized shopping experience. These “Custom Club” and “Patch Bar” locations allowed customers to select from a curated collection of items and customize them with embroidery and patches.

The Patch Bar, designed with a 1930s speakeasy aesthetic infused with 1970s nostalgia, and the Californian-inspired Custom Club, proved remarkably popular. Marine Layer co-founder Mike Natenshon noted that the pop-ups generated significant social media buzz and “lines out the door.” The success prompted the company to extend the pop-ups beyond the initial holiday season, evaluating the potential for wider implementation across its store network. The focus wasn’t on maximizing the number of items sold, but on providing a unique and memorable experience.

Abbode and the Rise of Customization

New York City-based embroidery shop Abbode, founded by Abigail Price and Daniel Kwak, offers a different, yet complementary, example of experiential retail. While Marine Layer leveraged an existing brand to create a unique experience, Abbode’s in-person customization component *built* its brand. Price initially opened a home decor store in 2021, but the addition of an embroidery machine in 2022, and a subsequent TikTok campaign offering complimentary embroidery, proved transformative.

The business quickly gained traction on social media, with customers sharing their personalized items and driving further demand. Abbode closed out 2025 with $4 million in annual sales, and has since partnered with brands like Charlotte Tilbury, Ritz Carlton, and L.L. Bean for collaborative pop-up events. Price emphasizes that the key to Abbode’s success lies in offering a tactile, personalized experience that cannot be easily replicated online. She notes a growing consumer desire to differentiate themselves in a world saturated with fast fashion and mass-produced goods.

The Complexities of Personalization

While the demand for personalization is clear, Price acknowledges the operational challenges involved. “There’s a reason so many brands don’t offer customization like we do—due to the fact that of how complex it is,” she explains. Managing inventory, coordinating embroidery services, and ensuring a seamless customer experience require significant investment and logistical expertise. However, Price remains optimistic about the future of the model, believing that Abbode can overcome these challenges and expand its reach.

A Nod to Nostalgia

A common thread running through both Marine Layer and Abbode’s success is a connection to nostalgia. Customers often mention childhood memories of personalized items, such as L.L. Bean backpacks with embroidered initials, or handmade gifts from grandparents. This suggests that personalization taps into a deeper emotional resonance, offering a sense of connection and authenticity in a increasingly digital world.

The Financial Implications

The shift towards experiential retail has implications beyond individual brands. It suggests a potential re-evaluation of retail space, with a greater emphasis on creating immersive and engaging environments. While online sales remain significant, the willingness of Gen Z to visit physical stores indicates that brick-and-mortar retail is far from obsolete. However, retailers will need to invest in creating experiences that justify the trip, offering something beyond simply product availability.

For Marine Layer, the success of the pop-ups suggests a potential avenue for increasing revenue and brand awareness. The company is currently evaluating how to refine the concept and potentially roll it out to other locations. For Abbode, the viral marketing and brand partnerships demonstrate the power of social media in driving demand for personalized products. The company’s continued growth will depend on its ability to scale its operations and maintain the quality of its customization services.

What’s Next for Experiential Retail?

The future of retail will likely involve a hybrid approach, blending the convenience of online shopping with the tactile and social aspects of in-person experiences. Retailers will need to be agile and responsive to changing consumer preferences, constantly experimenting with new formats and technologies. The emphasis on personalization, sustainability, and community will likely continue to grow, as consumers seek brands that align with their values. The brands that can successfully navigate this evolving landscape will be best positioned to thrive in the years to come.