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Brick-and-mortar retail holds the course as consumers cut spending

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Shoppers are back in full swing at Metro Vancouver malls, but there’s a twist. Cost-of-living pressures are affecting spending habits, making this holiday season a bit different. Let’s break down the key points.

Consumer Presence: Almost 90% of Canadians plan to visit malls in December, up from 85% last year. The survey shows 43% will shop for 30 to 90 minutes, an improvement from the previous year.

Spending Outlook: Despite the rise in mall visits, there’s a shift in spending. On average, people plan to spend $412 per person, a 13% drop from last year. This adjustment compensates for the impact of inflation on prices.

Cost-of-Living Impact: Consumers are feeling the pinch of increased living costs, impacting their discretionary budgets. While demand remains high, the focus is on more mindful spending.

Shopping Preferences: Consumers are leaning towards brand-name discounters like Homesense and Marshalls. The cost-conscious approach is expected to drive this trend not only during the holidays but also in the coming year.

Impact on Retail Landlords: While consumer spending might be down, tenants aren’t leaving malls. Storefront exposure is vital in the new omnichannel marketing environment. Even with the rise in online research, brick-and-mortar stores play a role, with 18% using them as pick-up points.

Resilience of Vancouver Malls: Metro Vancouver malls are likely to be more resilient than others due to geographic constraints. The limited retail space ensures a unique dynamic, making these malls more robust in the face of changing consumer habits.

Conclusion: The holiday season in Metro Vancouver’s malls reflects a blend of in-person and online activities. While spending patterns have shifted, the resilience of these malls, along with the emphasis on mindful consumer habits, paints a positive picture for the future.

Please contact Jared Gibbons, your local realtor, should you have any questions!

 

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