In-store shopping had a big year. Winter holiday spending is expected to boost in-store sales another 2.5% to 3.5%, according to the National Retail Federation. That’s between $979.5b and $989b in holiday spending, compared with $955.6b during the same period in 2023—some gangbuster growth.
There’s no doubt about it: In-store shopping is so back. But it’s not just holiday shopping bringing people to physical stores. Brick-and-mortars offer consumers and brands the unique opportunity for instant gratification, brand discovery, and omnichannel shopping all year long.
Retail Brew teamed up with Brookfield Properties to learn why folks are flocking to shopping centers for that real-life experience. We’re chatting about all things in-store shopping, interactive experiences, and why physical stores are thriving in 2024. Hop in.
Consumers love in-store shopping
In-store shopping offers consumers what other platforms can’t: convenience and instant gratification.
For brands, the benefits go beyond convenient sales. Brand discovery and shopping centers are a match made in heaven. Think about it: Consumers go to the mall to buy one gift but leave with full shopping bags. The other stores that catch their attention on the way to and from their original destinations are what make brick-and-mortar shopping irreplaceable.
Communal spaces draw customers in with seasonal experiences and attractions. At Brookfield Properties’ Natick Mall in Massachusetts, reservations to meet Santa at the immersive Santa’s Elevator Express experience completely sold out this year—in October. Over 5,000 families booked a reservation for the 2024 season before it even opened to the public. With day-of traffic and walk-ups, Natick anticipates another 2,500 families will visit the experience and shopping center—an additional 50%.
And while visitors wait their turn to meet Santa, they’ll wander around the shopping center and discover new stores. Experiences + attractions = brand discovery.
The full shopping experience
Immersive experiences aren’t just seasonal treats. They’re effective year-round, bringing communities together and helping brands connect with new consumers. Big-box stores are leading the charge, incorporating interactive elements like rock-climbing walls and outdoor fields.
Continuing their partnership with Brookfield Properties, Dick’s House of Sport is opening a new location in Arlington, Texas, complete with batting cages, golf simulators, and workout classes.
Other Brookfield Properties partners are following suit:
- The Green, a newly developed lifestyle area at Oxmoor Center in Louisville, Kentucky, features standout experiences including Topgolf + Puttshack.
- Brkthrough’s new challenge room is coming soon to Kenwood Towne Centre in Cincinnati, Ohio.
- RH Oak Brook RH Oak Brook combines RH’s interactive interior-design firm and atelier with a rooftop restaurant at Oakbrook Center in Oak Brook, Illinois.
Photo courtesy of Nick Fochtman with Brookfield Properties
The Z factor
Physical stores help brands connect with younger audiences, too. According to a 2023 report by the International Council of Shopping Centers, Gen Z—people ages 16 to 26—like shopping in person as much as online, if not more.
Brookfield Properties Executive Vice President Ali Esmaeilzadeh said that at the Glendale Galleria, “Virtually all Gen Z customers shop in-store and prefer physical retail at similar rates to previous generations.” That affinity for in-store shopping helped solidify Gen Z as the true “omnishopping” generation, seeking out the brands and products that interest them wherever they can. Though their shopping journeys often begin online, Gen Z seeks out the instant gratification brick-and-mortar stores offer.
To put Gen Z’s purchasing power into perspective, their share of in-store mass merchandise dollars surpasses that of all previous generations. Their combined in-store mass merchandise and grocery purchases account for nearly 50% of their total spending.
Hello, revenue boost!
Omnichannel shopping isn’t exclusive to Gen Z. Physical stores drive higher revenue for brands that capitalize on both in-store shopping and other platforms. Brands and consumers prefer shopping at brick-and-mortar stores, especially during peak shopping seasons.
Let’s talk holiday shopping. Big shopping weekends like Black Friday/Cyber Monday drive traffic to shopping centers as consumers prepare for holiday gifting. But for those who wait until the last minute to shop (don’t worry, we’ve all been there), the convenience of in-store shopping can’t be understated.
Last-minute shopping peaks on Super Saturday (Dec. 21), and the instant gratification of purchasing those last few gifts is something consumers can experience only in-store. Consumers enjoy ticking the last items off their lists, and brands celebrate the revenue boost from holiday shoppers discovering their storefronts.
Once the holiday rush has passed and consumers fall back into their usual routines, they remember and respond to the good experiences they had shopping in-store. Consumers return to those fondly remembered stores in non-peak seasons, creating a loyalty loop that strengthens with every return trip. That’s the magic of brick-and-mortar shopping centers.
And that’s where Brookfield Properties comes in. Their shopping centers help provide consumers with a sensory experience that other platforms can’t match: the benefit of touching, tasting, and feeling products in real time. Brookfield Properties is reimagining retail, creating new experiences for consumers and a home where tenant partners can thrive.
Brookfield Properties is more than a landlord—it’s a partner to retail brands. With 130+ US retail assets and a deep bench of industry pros that expertly curate shopping experiences for local communities, Brookfield creates gathering places for consumers and brands alike.
Brick-and-mortar’s just around the corner. Learn more.