Shopping mall traffic rebounds, but shopping dynamics shift

A recent white paper by foot traffic analytics firm Placer.ai, titled "The Comeback of the Mall in 2024," reveals a notable resurgence in shopping mall foot traffic, signaling a recovery towards pre-pandemic levels. While this uptick is promising, the analysis underscores significant shifts in consumer behavior and preferences compared to pre-pandemic times.

According to the white paper, indoor malls experienced a 5.8 percent decline in visits in 2023 compared to 2019, marking a significant improvement from the over 15 percent decrease witnessed in 2021. Similarly, foot traffic at open-air shopping centers dipped by only 1 percent last year compared to pre-pandemic levels. Despite these fluctuations, the report suggests that foot traffic across the shopping center industry overall was down by 2.3 percent in 2023, hinting at a potential resurgence in 2024.

Placer.ai's findings shed light on various mall and shopping center types, including indoor malls, open-air shopping centers, outlet malls, strip malls, and grocery-anchored shopping centers. The white paper emphasizes several key insights, including the return of mall visits to pre-Covid levels, albeit with notable changes in visit patterns. While weekday versus weekend visit distributions have remained stable, there has been a shift in hourly visit distribution, with more afternoon trips observed as people capitalize on flexible work schedules.

The white paper also underscores the importance of experiences in driving mall traffic, highlighting the impact of entertainment and dining options in attracting and retaining crowds. Additionally, the report identifies pop-ups as a potent tool for driving foot traffic, citing the significant visit boosts observed during events such as Shein's pop-up opening in December 2023. Furthermore, the white paper highlights the growing dominance of luxury retailers, particularly in Sunbelt States like Texas, Florida, and Arizona, where the demand for luxury goods is on the rise, fueled by an influx of affluent residents.

As the retail landscape continues to evolve, these insights offer valuable guidance for mall operators and retailers seeking to navigate changing consumer preferences and capitalise on emerging trends in the post-pandemic era.