Although visits to malls dropped year-over-year in December, this did not stop the industry from showing great general performance in 2024.
With increases of 1.5% and 1.7%, respectively, total visits to indoor malls and open-air retail centers topped 2023 levels. Often attracting budget-conscious consumers, outlet malls saw their traffic remain almost level with just a slight drop of -0.4% from the previous year, according to Placer.ai.
Comparatively to 2023, December—a crucial month for retail—saw a modest drop in all shopping mall categories. Outlet malls reported the sharpest decline at -1.6%; open-air shopping centers followed at -0.7%; interior malls came in at -0.2%. Driven by a successful Black Friday weekend that increased visitation across all mall categories, these declines followed a robust November.
Shopping mall performance in 2024 proved to be strongly correlated with the wealth levels of its tourist base. Posting the highest year-over-year increases, open-air retail complexes tended to draw more wealthy consumers less influenced by economic concerns. Conversely, outlet stores—mostly serving consumers from lower-income neighborhoods—saw the sharpest stagnation in foot traffic.
Mall trips were much shaped by the holidays. Between Black Friday and New Year’s Eve, visitors jumped noticeably. Outlet malls witnessed a 59.3% increase; indoor malls saw a 57% increase; open-air shopping complexes saw a 31.4% increase. Fascinatingly, daily visits increased more on weekdays than on weekends, a change that would suggest more consumer flexibility in their schedules.
With dwell times thus clearly rising, shoppers stayed longer during the holiday season. The average visit length rose by 4.7 minutes at indoor and outlet malls and by 3.1 minutes at open-air retail complexes. Usually resulting in more spending, these longer visits help the stores and companies functioning in these areas.
The developments in 2024 underline the persistence of physical retail environments and their capacity to change consumer behavior. Longer dwell times and strong holiday traffic for indoor malls point to a rising demand for events outside conventional retail. In these settings, flagship stores, unusual food alternatives, and entertainment venues might flourish.
Attractive to a more affluent population, open-air centers provide chances for luxury stores, boutiques, and wellness-oriented products. The consistent traffic of these formats indicates their ideal location to grab the interest of consumers seeking quality and convenience.
For value-driven shoppers, outlet malls remain a necessary location even if they present more difficult surroundings. Operators should have to focus especially on offering appealing discounts and expanding their tenant mix to appeal to a larger audience if they want to remain relevant.
Looking ahead, the retail scene will probably keep changing in response to mixed-use development integration, environmental initiatives, and technology breakthroughs. Malls that give flexibility and creativity top priority will be most suited to survive in a growingly competitive market.
