Ethan Chernofsky of Placer.ai’s May 2023 Mall Index Recap revealed that economic headwinds are continuing to have an impact on mall traffic, with year-over-year visit gaps for all three mall categories (indoor, open-air and outlets) growing for the fourth consecutive month. Consumers are waiting for lower prices and easing interest rates before directing discretionary spending towards services.
Interestingly, month-over-month visits have remained mostly positive or flat over the past three months; additionally, open air lifestyle centers and outlet malls experienced an increase in median length versus May 2022 – indicating consumers may be cutting back on their visits but spending more time at malls when they do go out shopping.
Placer.ai noted that sales events had led to “significant traffic surges” across all three categories of malls; particularly benefiting outlet malls during Memorial Day weekend due to their value orientation which could serve as a draw during upcoming back to school season too. The takeaway from these numbers is not that consumers are avoiding shopping at retail centers altogether – rather they’re focused more on value which explains increased interest in outlets specifically..
Senior Vice President of Marketing Ethan Chernofsky expressed optimism about the long term outlook of retail spaces given it’s hard to find good quality space while new tenant types attract desired audiences; however he cautioned short term challenges will likely continue until wider economic effects lift off again soon enough
