This year’s back-to-school season breathed new life into indoor malls, with a recent report from Placer.ai revealing a significant 7.3% increase in foot traffic compared to the previous year. This surge in popularity wasn’t limited to enclosed shopping centers, as open-air shopping centers and outlet malls also experienced substantial growth during the same period.
This resurgence in mall traffic has not gone unnoticed by industry insiders. Joe Aristone, executive vice president and chief revenue officer of PREIT, makes it his business to closely monitor these trends. He observes that certain retailers continue to strike a chord with the teenage demographic, particularly American Eagle and Abercrombie. Aristone attributes its ongoing success to a winning combination of appealing style offerings and competitive price points, which resonate strongly with young shoppers.
Surprisingly, even Dick’s Sporting Goods, not traditionally associated with back-to-school shopping, has emerged as a major player in this sector. Aristone explains, “Kids are coming in for their sporting equipment and gear and all the things that they need to participate in sports. There’s a lot of athleisure wear that runs through Dick’s, and that’s kind of been a bright spot in terms of what we’ve seen.”
While the back-to-school season has provided a boost to mall traffic, retailers and mall operators are looking beyond seasonal trends to ensure long-term success. Aristone emphasizes the importance of creating compelling reasons for shoppers to visit physical stores in an era where online shopping is ubiquitous.
One strategy gaining traction is the integration of retail and entertainment venues. This approach aims to appeal to a wider audience and encourage longer visits, ultimately translating into increased consumer spending. Aristone notes that alongside traditional food courts and casual dining options, malls are now incorporating entertainment venues like arcades and eat-and-play experiences.
The recent surge in back-to-school shopping demonstrates that physical retail spaces still hold value for consumers. However, Aristone acknowledges that the mall landscape continues to evolve. Lower-tier shopping centers are facing challenges in attracting tenants, while successful retailers are focusing on integrating various distribution channels, such as buy-online-pick-up-in-store options.
As the retail landscape shifts, some mall operators are opting for a more focused approach. PREIT, for instance, has reduced its presence in the Philadelphia market from eight malls to just five, concentrating on high-performing locations.
Despite these changes, the future looks promising for well-adapted malls. PREIT reported a 6.7% increase in traffic across its portfolio in August compared to the same month last year, suggesting that the right combination of retailers, experiences, and locations can still draw shoppers to physical stores.
Source: “How Malls Are Adapting to Ensure Long-Term Success”
