The retail industry has seen a resurgence in malls and shopping centers over the past few years, despite challenges such as inflation. According to a recent report by Placer.ai, consumer confidence is expected to continue growing in 2024, leading to positive changes for these retail spaces.
Placer.ai predicts three specific trends that will shape the mall experience in the coming year:
1. Increased tenant diversity: Mall owners have been utilizing this strategy to attract more shoppers and it is expected that this trend will continue into 2024 with an emphasis on placemaking – creating spaces that encourage social interaction and exchange. This approach has proven successful in boosting retail performance.
2. Attracting higher-income shoppers: In 2023, malls saw an increase of high-income shoppers due to their stronger consumer confidence compared to middle- and low-income consumers. With many malls located in affluent areas, this trend is likely to continue into 2024.
3.Younger visitors returning: After a decline during the late 20th century and early 2000s, younger consumers are once again being drawn back towards physical stores at shopping centers accordingto Placer.ai’s report.The company notes that as Gen-Z rediscoversthe mall experience,the number of young visitors may grow even largerinthe upcoming year.
In conclusion,the key forretail center ownersis providing diverse experiences catered towards higher incomeand/or younger customers.Thiswill allow them totake advantageof opportunitiesin theyear aheadaccordingtoPlacer.ai’s advice.
