MRI: ‘Chilling drop’ in retail visits in February
Retail foot traffic took a header on the slippery sidewalks of February, according to an analysis from MRI Software.
The provider of commercial real estate data reported that shopping mall traffic in the month of February dropped by 5.1% compared to January. Downtown retail visits fell by 2% during the same period—the first monthly decline in downtown traffic since 2019, according to MRI.
In year-over-year comparisons, downtowns took the hardest hit, registering traffic that was 6.4% lower than last February. Mall declines year-over-year were just 0.4%.
During weekdays, malls experienced traffic that was 1.7% higher than it was in February 2024. But traffic totals dipped due to decline of 2.9% on weekends.
Traffic slides were most prevalent from 8 p.m. to 11 p.m., when traffic was 8.3% lower across both retail categories when compared to February 2024.
MRI blamed a mix of extreme winter weather, heightened economic uncertainty, and the seasonal flu for the shopping flop in February, which typically tends to be a rebound month following a post-Christmas lull in January.
Valentine’s Day, which fell on a Friday, was February’s one rallying occasion — especially for malls whose footfall rose by 25.3% in shopping malls compared to a much lower 9.4% in downtowns.
Malls won the night on Valentines day with a 42.2% increase over last year, a strong reflection of how malls have evolved with more dining and leisure-based options, according to MRI.
The report added that several events could reinvigorate foot traffic in March, including St. Patrick’s Day celebrations, warmer weather, spring break, the start of baseball season, and March Madness, which begins on March 18.
At the same time, MRI warned that the implementation of tariffs on goods imported from Canada, Mexico, and China could have a negative impact on consumer spending habits.
“Many consumers are reining in their spending, taking a wait-and-see approach amid rapid changes to economic policies,” said Carla Hinson, VP of North American Solutions at MRI. “Closed wallets will likely lead to decreases in pedestrian traffic in shopping malls and downtown areas on evenings and weekends, but return-to-office mandates may help to balance the scales during business hours on workdays.”
