All is not well in the world of retail and both downtowns and shopping malls may have to adjust the experiences they offer clients in order to win back customers.
A new report on foot-traffic counts in the month of April by MRI Software revealed a pattern of increased consumer caution in both cases.
Downtowns enjoyed an 8% month-over-month boost in foot traffic – but a 3.9% dip year-over-year since the previous April. Malls saw foot traffic drop in both periods: by 2.7% month-over-month and by 2.5% year-over-year.
Downtowns benefited in mid-April when students returned from Spring Break and a series of major events like marathons and festivals brought in customers. Workers returned to their routines, bringing more activity that peaked midweek. Commuter and business activity kept weekday performance resilient, even though a drop in leisure travel on the weekend hurt business.
"Downtowns are increasingly dependent on a combination of office attendance, events and experiential activity to drive engagement," the report observed.
Malls were somewhat differently affected. Foot traffic to malls slumped in April along with discretionary demand outside of key calendar dates, the report said. It hit a low of 5.9% in mid-April, "reinforcing that mall visits are becoming more event-driven rather than habitual."
Toward the end of April, however, foot traffic to shopping malls grew 5.1% week-over-week, turning in a better performance than downtowns, as consumers went shopping for routine items.
MRI Software's findings demonstrate a new trend, which is "Foot traffic is no longer evenly distributed across the week," the report stated.
"Instead, visits are consolidating around midweek commuter activity and end-of-week social occasions, with early-week demand becoming increasingly fragile."
"For shopping malls, this translates into cooling momentum without clear seasonal triggers, reinforcing the need for sustained programming and value-led propositions to maintain visits," it added.
A key test for both downtowns and malls will come this summer as the World Cup arrives in the USA. It will offer both types of locations the opportunity to lean into experiential retail, from fan zones and watch parties to large-scale activations, according to the report.
"April's data reinforces a critical takeaway," noted Carla Hinson, VP of North America solution & innovation, at MRI Software.
"Although foot traffic can still be lifted through events, weather, and seasonal highlights, long-term growth will depend on how well destinations adapt to a consumer that is more deliberate, more selective, and increasingly driven by purpose-led visits."
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