Holiday Mall Traffic Mostly Improved From Year Ago

Holiday mall visits during peak season were significant, according to final 2022 data from Placer.ai compared to the year before, according to its analyst, Ethan Chernofsky.

Visits in December rose 40.3% for indoor malls compared to November visits and open-air lifestyle centers and outlet malls saw increases of 27.7% and 31.6% respectively month-over-month.

“Visits on the week of Black Friday rose high above the annual average with outlet malls seeing their strongest visit week of the year,” the firm said in the report.

Foot Traffic Exceeds 2021 for PREIT

Joe Coradino, CEO of PREIT, tells GlobeSt.com that this holiday season, shoppers were ready to return to malls, spend time in stores, and have in-person social experiences.

“Throughout December, we had a steady flow of visitors across our portfolio,” he said.

“In some of our highest-performing properties, we saw foot traffic exceed 2021 levels. At Woodland Mall in Grand Rapids, Mich., where we completed a redevelopment in late 2019, traffic continues to grow, increasing 4% over 2021’s holiday season.”

Simon: Shoppers Want to ‘Touch, Try, Buy’

Laura Schwartz, Regional Vice President of Leasing for Simon Property Group, tells GlobeSt.com that her company had a very successful holiday season, “and we continue to see that our shoppers want that ‘touch, try, buy’ in-person experience as shown by our growth in traffic and strong retail sales momentum.

“We consider our Boston centers as places where people can experience a lifestyle more than anything else, which has resulted in increased visits, as well as higher overall sales, particularly during the holidays.”

Burlington Mall and Northshore Mall, both part of our Boston portfolio, were completely redeveloped with new retailer categories that focus on entertainment in addition to traditional shopping options.

Vehicle Traffic Up 20% at Bergen Town Center

Danielle De Vita, EVP, of Development for Urban Edge, tells GlobeSt.com that at Bergen Town Center, demand for anchor stores Whole Foods and Target, along with holiday deals at key off-price retailers, including Homegoods, Marshalls, and Burlington, drove a 20% increase in vehicle traffic December 2022 vs. 2021.

“Our December foot traffic also reflects the overall trend in that we saw a surge the week after Christmas, resulting in higher volume than last year,” De Vita said.

Foot Traffic Up, But Not Consumer Spending

Chris Maling, principal, retail capital markets, Avison Young, tells GlobeSt.com that owners of open-air and enclosed malls saw foot traffic increases that met expectations, however, that did not reflect an increase in consumer spending.

“Some retailers have been affected more than others,” he said. “For example, Bed, Bath & Beyond is exploring Chapter 11 reorganization due to worse-than-expected sales. Other retailers have been experiencing flat to a slight decline in sales due to lackluster consumer spending, and some discount retailers saw a huge spike in sales, such as Ross Dress for Less, TJ Maxx, and Marshalls.”

Foundation for a Strong Start to 2023

Placer.ai’s report added that there is potential for “very strong” YoY results in brick-and-mortar retail in Q1.

“This is due to the ongoing recovery, the potential for declining economic headwind effects and, most importantly, the comparison to an Omicron-hampered January and February of 2022,” Chernofsky said.