Jones Lang LaSalle’s’ (JLL) review of Q4 2019 provides excellent insights into the future of retail shopping. These insights allude to the changing, but still successful, nature of the retail experience. Read on to examine some trends of Q4 2019 before analyzing five significant trends for 2020.
Of note, retail sales grew by 4.1% this holiday season.
This statistic is impressive, especially considering its improvement from a lackluster Q4 2018 performance. Additionally, mall demand soared in Q4 2019. The change in demand was aided by food, entertainment, and fitness-focused businesses. Experiential shopping and recreational experiences are expanding, and landlords are taking full advantage of this trend.
Q4 2019 showed upward movement for power centers, too. Power centers, anchored by big-box tenants and discount supercenters, grew in demand by 20% over the year. Health and fitness centers helped to push this drastic increase in demand.
The trend across Q4 2019 is clear: With so many products available online, in-person shoppers are instead looking for excellent services and captivating experiences. The rise of entertainment, health, and fitness companies illustrate this trend.
JLL has outlined five big trends for 2020, which include:
- Services are overtaking products in retail sales. Consumers love products, but they’re turning their attention to restaurants, arcades, and fitness centers.
- Small tenants are excelling. While more large-sized stores are opening than closing, small and midsized tenants are expected to announce far more openings than closures in 2020.
- Landlords seek to create more captivating experiences for children. From play parks to immersive fairytale-like experiential centers, entertainment areas for kids will grow in this coming year.
- Retailers are teaming up to increase their capacities. For example, Walgreens now offers mini pharmacies in dozens of Kroger locations, while Kroger provides an assortment of grocery stores in many Walgreens locations. Other stores are incorporating delivery services, fitness centers, and shopping options that weren’t offered previously.
- Mixed-use projects show steady growth. Developers are turning toward mixed-use facilities—places that offer residential, commercial, working, and entertainment spaces.
As JLL’s conclusions support, 2020 will be a year catered to retail centers and businesses that offer an immersive, entertaining, and service-oriented experience.
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