M id A tlantic Real Estate Journal — New Jersey — November 2024 — 21
www.marej.com
N ew J ersey
Industry responds to consumer wish lists with value, convenience and service Levin Management pre-holiday retail survey points to a solid season
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likely a reflection of this year’s more cost-sensitive climate. Regardless of whether their customers are tightening their budgets or ready to splurge, re- tailers are working to meet de- mand for convenience – and ex- perience. Nearly 38% of survey participants said they are try- ing new ways to enhance their customers’ holiday shopping experiences, such as in-store services, loyalty programs, same-day delivery, or online purchasing with curbside or in-store pickup. In an increas- ingly omnichannel retail world, continued on page 40
loved ones – and themselves. It appears this year is shaping up to be no exception.” Peak Sales – Shifting Anticipation Over the past decade, LMC’s survey findings have mirrored the evolving trend of consumers shopping early for their holiday gift-giving purchases. The 2024 poll breaks with this movement, with retailers’ expectations of early peak spending shifting significantly from recent years. This year, 35% of respondents anticipate their peak sales will occur during or prior to the Black Friday/Thanksgiving
weekend, down from close to 50% in 2022 and 2023. Further, 20.5% say they ex- pect their peak sales to occur the weekend before Christ- mas, marking the highest per- centage recorded in the LMC survey since 2012. The poll – now in its 13th year – has tracked a trailing average of just about 15% of respondents expecting peak sales to occur that late in the game. “Although our survey didn’t explore why retailers’ peak period expectations may have changed, the 2024 season does have some distinctive
attributes,” said Harding. “This included the presidential election – which could have impacted the earliest spending boom – and a shorter-than- usual shopping period between Thanksgiving and Christmas.” Balancing Value, Innovation and Tradition When LMC survey partici- pants ranked various factors likely to impact seasonal per- formance, inflation was at the top of the list. And nearly 32% of respondents say they will have more holiday sales and discounts compared to 2023, a 12.6% spike from last year and
ORTH PLAIN- FIELD, NJ — Retail- ers in Levin Manage-
ment Cor- poration’s ( LMC ’ s ) leased and ma n a g e d s ho pp i ng center portfo- lio anticipate solid 2024 holiday sales
Matthew Harding
performance against a back- drop in which strong consumer confidence comes face-to-face with the realities of higher, inflation-driven pricing. The North Plainfield-based commercial real estate ser- vices firm released its an- nual Pre-Holiday Retail Sen- timent Survey findings. The results reveal a price- and convenience-conscious envi- ronment, with retailers simul- taneously offering more sales and discounts while becoming increasingly innovative in leveraging the benefits of the brick-and-mortar experience. High Expectations Amid Record-Spending Forecasts Overall, 66.4% of LMC survey participants are op- timistic about their stores’ performance this holiday sea- son, and nearly two-thirds of this group expects their 2024 holiday sales to be the same or higher when compared to 2023. A mere 6.3% of respon- dents are pessimistic about the 2024 season, with only 10.5% of that group expect- ing sales to be notably lower than 2023. Studies by industry trade and research groups mirror this largely positive outlook. The National Retail Federa- tion projects 2024’s holiday consumer spending will reach a record $902 per person aver- age, when gifts, food, decora- tions and additional seasonal items are included. The orga- nization forecasts spending growth between 2.5% and 3.5%, while PwC and Deloitte forecast spending growth of 7% and 2.3% to 3.3%, respectively. “Retail is doing well general- ly, and that bodes well heading into the core holiday season,” said LMC’s Matthew Hard- ing , CEO. “While seasonal forecasts are varied, they all anticipate record spending yet on a moderated growth trajectory. Through history, the holiday season has been prioritized by consumers as a time to spend extra on gifts for
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