Indoor, open-air malls rebound in February; outlets continue to struggle
Indoor shopping malls benefited from holiday traffic in the fourth quarter of 2023, with total year-over-year (YoY) visits rising 2.4%.
According to retail data firm Placer.ai’s Mall Index: February 2024, open-air shopping center visits were up 0.9%, while outlets saw visits decline 3.2% to close out the year. For the full year, open-air centers finished 2023 with a 3.0% overall increase in visits, compared to 2.9% overall growth for indoor malls. Outlets struggled to keep up with the other two formats, as YoY visits declined 1.6%.
In January of this year, visits were down 5.8% at indoor malls, down 2.4% at open-air centers, and down 11.8% at outlets. As of February, however, visits increased, growing 6% at indoor malls and 3.9% at open-air centers, while outlets continued to struggle, with visits down 1.6% compared to January of 2023.
Placer.ai noted that comparing the foot traffic performance to pre-COVID visits levels reveals a more nuanced picture of the visit increase. Of the three shopping centers formats, open-air centers drew closest to pre-COVID levels, with 2023 visits just 1.5% lower than they were in 2019. Indoor malls saw a slightly larger gap compared to 2019, with the format attracting 4.6% fewer visits in 2023. Outlets appear to be having the toughest time recovering from the pandemic , with 2023 visits to the format 9.7% lower than in 2019.
“Despite predictions of slower consumer spending, foot traffic data indicates that demand for malls and shopping centers remains stable,” said Placer.ai content manager Shira Petrack. “Location intelligence showing strong monthly visit numbers and positive shifts in shopping behavior indicates that the shopping center space is off to a strong start in 2024.”
The full report from Placer.ai can be found here.