Malls See Strong Traffic Resurgence as Holiday Shopping Peaks

With early promotions enticing shoppers well before Black Friday, physical retail stores are seeing a notable surge in foot traffic, signaling tha

With early promotions enticing shoppers well before Black Friday, physical retail stores are seeing a notable surge in foot traffic, signaling that brick-and-mortar shopping may be staging a much-needed revival.

According to Placer.ai, U.S. shopping malls—including indoor malls, open-air shopping centers, and outlet malls—have experienced year-over-year (YoY) increases of 6.4%, 4.8%, and 3.8%, respectively, for November 2024. This marks a clear upward trend and highlights how physical retail spaces are still an essential part of consumers’ holiday shopping routines.

A Shift Toward In-Store Shopping

This surge in in-store traffic comes as consumers continue to balance their online and physical shopping experiences. A First Insight survey found that 53% of consumers plan to shop exclusively at physical stores this year—an impressive increase over 2023. Many shoppers are drawn to the tactile experience of in-person shopping and the competitive pricing that physical stores offer.

Retail experts, including Greg Petro, CEO of First Insight, point out that this year’s holiday season is highlighting a return to the essentials: convenience, competitive pricing, and a focus on value. “Our insights reveal not only a strong preference for in-store shopping and the growing importance of loyalty programs but also a willingness to invest in premium services like faster shipping,” said Petro. “Retailers who adapt to these shifts by providing exceptional experiences and meaningful value will emerge as leaders during the critical year-end shopping season.”

Pre-Black Friday Momentum and Strong November Performance

The momentum for brick-and-mortar shopping didn’t just start on Black Friday. According to NRF (National Retail Federation), 60% of shoppers had already started buying gifts by early November. Malls saw increased visits during the week leading up to Black Friday, and the surge continued throughout the weekend. This early surge in foot traffic underscores the growing importance of early promotions and discounts. Retailers who began offering deals ahead of Black Friday managed to capture consumers’ attention, contributing to the overall uptick in physical store visits.

Notably, visits to open-air shopping centers and indoor malls during Black Friday weekend rose by 6.0% compared to last year. Even more impressively, these numbers not only exceeded 2023 levels, but also surpassed pre-pandemic levels—suggesting that in-person shopping is bouncing back stronger than anticipated.

The Power of Experiential Shopping

Why are more consumers flocking to malls this season? The answer seems to lie in the growing appeal of experiential shopping—the desire for the sensory experience of browsing, touching, and trying products in person. Despite the increasing convenience of online shopping, many consumers are still seeking the personalized, tactile interactions that only physical stores can provide.

According to Placer.ai, the rise in foot traffic is particularly notable in the fashion and lifestyle sectors, where consumers’ shopping decisions are often driven by the ability to physically interact with products. The trend also reflects the broader shift in how consumers view shopping as a multisensory experience, particularly during the holiday season when shoppers are looking for a festive, immersive environment.

Shoppers Are Buying Early and Focusing on Deals

As inflation continues to affect retail prices, many consumers are becoming more cost-conscious but are still eager to spend. In response, retailers are putting more effort into early holiday sales, loyalty programs, and value-added services like expedited shipping. A First Insight survey revealed that 64% of shoppers are influenced by loyalty rewards when making purchasing decisions, which further underscores the growing importance of building strong customer relationships.

Consumers are also increasingly shopping earlier this year, with many aiming to spread out their budget and avoid the stress of last-minute purchases. According to NRF, 57% of holiday shoppers plan to shop online, while 46% will shop in physical stores. 45% of shoppers also plan to visit discount stores for holiday gifts and seasonal items, showing the strong consumer preference for deals this season.

What Are Consumers Buying This Holiday Season?

While shoppers are increasingly focused on value, they are still willing to spend on gifts, with a significant portion of their budgets allocated to this category. Gift cards top the list, with four in 10 consumers planning to purchase them this year. Popular product categories are expected to remain similar to those of previous years, including:

Clothing
Gift cards
Toys
Books, video games, and other media
Food and candy

Additionally, alcohol is also expected to be a top seller this holiday season, with a growing interest in gifting specialty beverages.

Retailers should also be prepared for some quirky products that may see an uptick this season. According to Google’s Holiday 100 list, popular items include nostalgic Y2K products, comfy pillowsacs, slogan shirts, and foot massagers, along with more typical holiday items like digital picture frames and ice cream makers.

Looking Ahead: Will the Momentum Continue?

As we head into December’s final weeks, retailers are closely monitoring whether the strong momentum from November will continue. The surge in foot traffic and early spending indicates that holiday sales will likely remain robust through the end of the year. The increase in experiential shopping and the ongoing demand for early promotions highlight how both retailers and consumers are adapting to the challenges of this shorter shopping season.

For retailers, the key to success lies in creating a seamless blend of in-store experiences, early promotions, and loyalty rewards. By focusing on these elements, retailers can capitalize on the growing trend of in-person shopping and the desire for competitive pricing, personalized service, and convenience that today’s consumers are seeking.

Key Takeaways for Retailers:

In-Store Shopping is Back: The significant increase in foot traffic suggests that consumers are eager to return to physical stores. Retailers should continue to enhance in-store experiences with holiday displays, promotions, and exceptional customer service.
Early Promotions Matter: Early sales and discounts have proven effective in capturing shoppers’ attention. Retailers should continue to leverage pre-Black Friday deals to extend their holiday sales window.
Loyalty Programs Drive Sales: 64% of shoppers are influenced by loyalty rewards, so investing in these programs can help build long-term customer relationships and boost sales.
Experiential Shopping is Key: Consumers crave the sensory experience of shopping in physical stores, making this a vital factor in driving foot traffic, especially in the fashion and lifestyle sectors.
Plan for the Unexpected: Shoppers are increasingly open to quirky and unique products. Retailers should be prepared to showcase trendy, offbeat items alongside the usual holiday staples.