Generational Diversity as a Driver of Vibrant Retail Districts

Abstract

This study examines the effect of generational diversity on the vitality of urban retail districts. While prior research focused on organizations, little is known about its role in neighborhood economies. To address this gap, we analyze panel data from the Seoul Retail District Analysis Service and apply social capital theory and the contact hypothesis to explain how generational diversity may shape outcomes. Results from Study 1 show that diversity, measured with the Blau Index, has a significant positive effect on average sales per transaction, indicating that interaction across age groups enhances vitality. Study 2, motivated by rapid ageing and the rise of active older consumers, reveals that although a higher senior population ratio generally reduces average sales per transaction, this effect is moderated by income, becoming positive in higher-income districts. These findings identify generational diversity as a driver of vitality and highlight intergenerational contact zones (ICZs) for sustainable economies.