Study: Center visitors spend 50% more on experiences than on ‘stuff’
If you think mall and shopping center operators’ only motives in adding experience-based tenants is to drive traffic and charge increased rents for anchor space, think again.
A study from MetLife Investment Management called “A New Dawn in Retail” holds that visitors to centers spend 50% more on movies and bowling than they do on merchandise. This is a marked increase from just three years ago when MetLife’s “experience-to-stuff ratio” tagged consumers with spending $1.30 on experiences at retail properties for every $1.00 they spent on goods.
“Stores that are primarily goods-based have faced headwinds from both the trend towards spending on experiences rather than stuff, and the trend towards buying that stuff online rather than in a store,” read the report.
As a result, more retailers are using smaller stores as showrooms for their online businesses and carrying less inventory, the report held. A MetLife analysis of leases executed by more than 150 retailers showed a 1.2% decrease in median store footprints between 2017 and 2018.
A study from MetLife Investment Management called “A New Dawn in Retail” holds that visitors to centers spend 50% more on movies and bowling than they do on merchandise. This is a marked increase from just three years ago when MetLife’s “experience-to-stuff ratio” tagged consumers with spending $1.30 on experiences at retail properties for every $1.00 they spent on goods.
“Stores that are primarily goods-based have faced headwinds from both the trend towards spending on experiences rather than stuff, and the trend towards buying that stuff online rather than in a store,” read the report.
As a result, more retailers are using smaller stores as showrooms for their online businesses and carrying less inventory, the report held. A MetLife analysis of leases executed by more than 150 retailers showed a 1.2% decrease in median store footprints between 2017 and 2018.