Phil Lavoie, COO at Gotham Organization Phil Lavoie, COO at Gotham Organization

The U.S. retail industry in 2018 was marked by a variety of keytrends, including a rise in experiential retail, steady closurerates among physical retail chains, and ongoing popularity ofsubscription-based e-commerce verticals. While brick and mortarstores, from mom-and-pop shops to major retail brands, continued toexperience a lag in retail activity, one area in particular emergedas one of the industry's most successful case studies—foodhalls.

As developers seek ways to mitigate the downward trend oftraditional retail activity, food halls emerged, and in myestimation, will remain, a viable solution in 2019, spurringon-site activity among consumers despite e-commerce dominance viaonline shopping. While research shows that digital shopping leadsbrick-and-mortar shopping activity among consumers, food hallssatisfy a variety of intrinsic shopping desires that e-commercesimply cannot accommodate. According to data from the U.S.Department of Agriculture, millennials spend 44% of theirfood-allotted budget on eating out, with 52% of adults looking totry new cuisines. In addition, 61% of adults report that they wouldprefer to spend money on experiences, including eating out, overpurchasing a physical item from a store.

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