Mall Traffic Recovery from COVID-19 Shows Positive Progress

New York City was alight with Christmas trees, and there were more visitors in the city since the pandemic. Retail spending in the 2023 holiday season rose by three percent year-over-year, and spending in restaurants was up by 7.8% from 2022 [49cb7604]. Santa Claus is the biggest brand, inspiring consumers to shop. Coca-Cola is often credited with creating the image of Santa recognized today. Other ads generating buzz include John Travolta playing Santa for Capital One and heartwarming ads by Amazon and Chevrolet [49cb7604].

Anchorage store owners are hoping for a strong holiday shopping season to recover from a challenging year of snowstorms, high inflation, and other factors [7538d4b6]. Inflation is still high, and some people are prioritizing groceries and bills over discretionary spending [7538d4b6]. The city is the fourth most expensive place to buy groceries in the US [7538d4b6]. Growth in retail sales nationally during the holidays is expected to be slower than previous years due to the end of stimulus spending, but it should be in line with pre-pandemic growth rates [7538d4b6]. Shopping locally can make a big difference in Alaska's economy, leading to higher wages and more jobs [7538d4b6]. Small Business Saturday has become a critical day for local entrepreneurs in Anchorage [7538d4b6]. Some store owners are facing competition from big holiday markets and homemade crafters [7538d4b6]. Overall, store owners are hopeful that the holiday season will boost sales and set off a strong gift-shopping trajectory [7538d4b6].

Retailers in the Channel Islands have also seen a positive shift in consumer behavior during the festive season, with residents choosing to shop locally instead of online [239bbce9]. This has led to a 3.1% year-over-year rise in consumer spending [239bbce9]. Store managers have observed the importance of personal interaction and unique in-store experiences in attracting customers back to physical stores [239bbce9]. The shift to local shopping has not only provided an economic boost but also has environmental benefits, as it reduces the carbon footprint [239bbce9]. Several Islanders have been officially recognized by King Charles III for unspecified reasons, highlighting the thriving local talent and supportive community [239bbce9]. The Channel Islands' retailers encourage continued support for local businesses, emphasizing the positive impact on the local economy, environment, and community resilience [239bbce9].

US retailers, including Walmart, Target, Home Depot, and Macy's, are approaching the holiday season with caution as concerns about consumer spending loom [57dc0302]. Despite efforts by the Federal Reserve to rein in inflation, consumer demand has remained resilient [57dc0302]. US retailers, including Dollar General, Walmart, and Macy's, are facing the challenge of excess stock for the second year in a row, which could jeopardize profit margins and lead to steep discounts for shoppers [57dc0302]. The National Retail Federation predicts that US holiday sales will grow at a slower pace this year, projecting a 3% to 4% increase in November and December compared to the previous year [57dc0302]. US holiday sales in 2023 are expected to rise at the slowest pace in five years, as Americans grappling with sticky inflation think twice before splurging this shopping season [57dc0302]. Retailers and consumers are facing economic uncertainty as they enter the holiday shopping season [57dc0302]. The National Retail Federation projects a 3-4% increase in retail sales for the holiday season, slower than previous years but in line with the average increase from 2010 to 2019 [57dc0302]. However, there are concerns about rising inflation, job growth slowing, and geopolitical tensions [57dc0302]. Consumers are expected to spend an average of $875 on retail for the holidays, with gift spending projected to increase by 9% [57dc0302]. Retailers will need to be agile and responsive to navigate the challenging headwinds [57dc0302]. The US economy is heavily dependent on retail performance, and the holiday season is crucial for retailers' year-end performance and reserves [57dc0302]. Despite the challenges, the NRF remains optimistic about the holiday season, emphasizing the strength and resilience of the consumer sector [57dc0302]. Canadian retailers are also facing a similar situation, with experts anticipating steeper discounts and unique shopping experiences to attract holiday shoppers [57dc0302]. Sales are expected to be down, with consumers buying more essentials and less discretionary items [57dc0302]. Retailers in Canada plan to offer an average discount of 18%, higher than the United States, Australia, and the United Kingdom [57dc0302].

According to a Bloomberg report, Aldi and Lidl, two major supermarket chains in Britain, experienced a boost in sales during the Christmas season [32e0bc73]. The Christmas period was the biggest since before the Covid-19 pandemic, with consumers spending more on groceries and gifts [32e0bc73]. Aldi reported a 10% increase in sales compared to the previous year, while Lidl saw a 7% increase [32e0bc73]. The surge in sales can be attributed to factors such as increased consumer confidence, higher disposable income, and a desire for quality products at affordable prices [32e0bc73]. Other supermarket chains, such as Tesco and Sainsbury's, also performed well during the festive season [32e0bc73]. Overall, the strong Christmas sales indicate a positive recovery for the retail sector in Britain [32e0bc73].

The American mall's traffic recovery from COVID-19 is proceeding at a healthy pace, with visit gaps across all sectors of retail real estate just 2.3% lower than they were in 2019. Open-air centers outperformed the industry average with a visit gap of 1%, while enclosed malls narrowed their traffic falloffs to 5.8%. Weekday visits during the afternoon and early evening hours have continued to increase, with the share of visits at enclosed malls from 4:00 to 7:00 p.m. rising from 29.1% in 2019 to 32.4% in 2023. The increased flow of new entertainment and food and beverage tenants into malls is also boosting traffic. For example, the opening of a Scheels store at the Chandler Fashion Center in Arizona boosted traffic by 45% in October and remained 30% higher in November and December [52dbc511].