Malls Are Still a Go-To for Holiday Shoppers
Yes, shoppers will still be at the mall this holiday season
The death knell has rung for malls many times over, as ecommerce cuts into a larger chunk of brick-and-mortar sales and retailers nationwide struggle to get shoppers to set foot in physical storefronts. eMarketer wrote earlier this year, traditional anchor stores like JC Penny have been struggling to attract shoppers; food court staples like Sbarro and Hot Dog on a Stick filed for Chapter 11 bankruptcy protection this year due to decreases in foot traffic. But a study from Simon Malls suggested that the holiday season may bring a much needed boost for mall businesses.
The 2014 "Holiday Shopping Behavior Survey" from Simon identified that more than eight in 10 (83%) holiday shoppers will shop at the mall during the 2014 holiday season. That number is higher among millennial shoppers (89%) between 18 and 33.
Most shoppers reported that the wide variety of stores they find at the mall proves helpful when searching for the right gift (78%) and when shopping for several different people (85%). Four in five agreed that shopping brick-and-mortar in the malls helps provide inspiration for their purchases—they can organically discover products in a way they may not be able to online.
The study's respondents also echoed concerns about fulfillment, as questions about inventory and delivery are raised among retailers nationwide. According to the survey, 81% of millennials polled agreed that shopping at the mall helps avoid the risk that gifts won't arrive on time. For millennials more than other age groups surveyed, Christmas Eve may be spent last-minute gift shopping at the mall (20%).
However, it remains unclear from the study whether these shoppers will purchase at these brick-and-mortar mall locations, or whether they'll showroom. And millennial and Gen X patients are not necessarily arriving at malls organically. Seventy-six percent of millennials and 72% of Gen Xers surveyed said they have purchased a gift at a store's mall location after browsing that store's website.
And shopping—in malls or otherwise—remains inextricably tied to the web: one in two holiday shoppers in the poll appreciate when stores or malls that can help make shopping easier and one half plan to use their mobile devices while holiday shopping to compare prices.
Many malls have gone one of two ways: pushing out lower-end vendors in favor of luxury brands from Saks Fifth Avenue to Gucci, or filling the mall with discount store tenants like T.J. Maxx. Either way, it's not time for the mall to die just yet. The International Council of Shopping Centers (ICSC) announced that US nonanchor mall stores saw the highest average sales per square foot in 10 years in 2013, climbing from $377 in 2009 to $468. And with shoppers purportedly flocking to malls for gift-getting, holiday season 2014 may come bearing gifts for mall tenants too.
Sbarro Survey
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