Decreasing retail foot traffic in downtown areas and malls may reflect consumer caution, economic headwinds and transforming shopping behaviors.
An MRI Software foot traffic analysis found that downtown pedestrian traffic fell 3.1% in May on a year-over-year basis and 2.4% month-over-month. Meanwhile, shopping malls saw no month-over-month change but enjoyed a modest 1.1% increase in foot traffic compared with a year ago.
“The downtown slowdown isn’t just about summer’s interference with the 9-to-5 routine anymore,” said Carla Hinson, VP, North American Solutions and Innovation, at MRI Software. “We’re seeing signs that people are making more intentional trips, driven by events, family time, or even the weather, rather than daily habits.”
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In downtown areas, the annual declines are tied to a 4.3% decrease in early morning and evening traffic, which are typically associated with peak commuter travel. In addition, weekday downtown traffic fell by 5% while weekend foot traffic rose by 5.4% compared with May 2024. MRI Software said these two metrics could suggest an increase in locals headed out of town for events or vacations. Also, the increase in weekend foot traffic aligns with the beginning of the summer holidays for college students, according to the report.
Mother’s Day boosted weekend downtown traffic by 14.5% week-over-week. That reflects a 9.5% increase from 2024 and a 16.3% increase from 2019. Retailers offering promotions and dining offers attracted those celebrating the national holiday, the report said.
For shopping malls, weekday traffic fell 0.9% year-over-year, while weekend visits ticked up 0.3%. This is a trend that continued from April and suggests that long-weekend sales benefited that sector of retail, said the report. Malls may also have benefited from shoppers seeking indoor spaces to spend time as colder-than-usual weather blanketed the country in May.
Memorial Day fell a week earlier than last year, which played a role in May’s foot traffic results. Foot traffic fell 2.2% below last year for the final week of the month. On a week-over-week basis, visits fell 12.3% on Thursday and Friday, which correlates with early departures and extended leave related to the holiday weekend.
Many companies relax work schedules during the summer, which may influence when and where people spend their time and money in the months ahead, according to MRI Software. Looking ahead to June, Pride events, Father’s Day and Juneteenth could drive retail and downtown activity for the month, the firm noted.
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Kristen Smithberg
Kristen Smithberg is a Colorado-based freelance writer who covers commercial real estate, insurance, benefits and retirement topics for BenefitsPRO and other industry publications.
