Wednesday, December 18, 2024

Mall shopping back in play, consumers prioritizing experiences

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While online shopping is still tops when it comes to the holiday shopping season, mall shoppers are expected to increase 18.7% this year and open air shoppers will increased by 10%.

Those are findings from JLL’s 2024 Holiday Shopping Report which polled more than 1,000 consumers in August and found notable differences in shopping behaviors as compared to 2023, including a 31.7% uptick in holiday budgets in 2024, according to a press release.

“Our survey indicates that consumers will flock to physical stores this holiday season, with malls emerging as the top brick-and-mortar destination. In fact, we’re forecasting an 18% uptick in mall visits where shoppers can experience the full breadth of holiday spirit,” Kristin Mueller, president, retail property management at JLL, said in the release. “Consumer demand for physical experiences, whether that be dining out, listening to live music, or appreciating storefront décor, has revitalized the mall experience and we’re expecting this resurgence to further accelerate in the 2024 holiday season.”

Additional key findings include:

  • Consumers prioritize experiences and food & décor: JLL reveals spending on food and décor jumped 61% from 2023, and holiday entertainment and experience budgets surged 56.4% year-over-year.
  • Holiday shopping begins early, but deal seekers will wait for Black Friday: Today, over 40% of consumers have already started shopping for the holidays, and by the weekend after Thanksgiving, 86% of shoppers will have begun, opening their wallets for deal days.
  • Shoppers favor electronics and accessories: Among physical gifts, clothing, electronics and accessories top the list of items shoppers plan to give others this holiday season. Furthermore, of the 83% of holiday shoppers who plan to buy a gift for themselves (up from 76.2% in 2023), apparel and electronics top consumers’ self-indulgent lists.

The report also revealed the average spending will be $1,261 per shopper for gifts, holiday food and décor and experiences.

“We’re not only seeing a shift in the amount that shoppers are spending but also what they spend their budgets on, including a focus less on giving and more on living,” Naveen Jaggi, president of retail advisory services, Americas, at JLL, said in the release. “With consumers expected to increase their holiday shopping budgets by over $300 from last year, this increase is, in part, due to a 56% uptick in spending on holiday-related experiences, such as dining out or attending a live performance, signaling that shoppers are embracing more than just physical goods this season.”

Most consumers will interact with physical retail storefronts this year, even more than in 2023, either by shopping in a mall, in an open-air center, picking up curbside or in-store or a combination thereof.

Over eight in 10 respondents will use social media platforms like Facebook, Instagram, and TikTok to inform 2024 holiday shopping decisions, with TikTok’s e-commerce platform nearly doubling in popularity relative to 2023.

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