LOS ANGELES-The addition of Thanksgiving evening shopping at the start of this holiday season increased retail foot traffic over last year, according to Jones Lang LaSalle Retail CEO and president Greg Maloney. The uptick bodes well for holiday sales this season, which is predicted to have a sales increase of 4%.
Overall for Thursday and Friday, foot traffic in JLL retail centers throughout the country was up 25% this year. Centers experienced heavy traffic on Thursday evening between 8 p.m. and 1 a.m., similar to the typical 5 a.m. rush on Black Friday, which was much slower this year. “Really what we did was shift that 5 a.m. shopper to the Thanksgiving shopper between 8 p.m. and 1 a.m.,” Maloney tells GlobeSt.com. “Traffic was way above expectation.”
Bargains are the main driver of Black Friday, and now Thanksgiving Thursday, sales. Although traffic had increased by about 25% this year, Maloney points out that dollar sales showed a slight decrease from last year. “That tells you that there were a lot more bargains this year than last year.” In terms of geographic region, Maloney notes that coastal cities, like California, experience the strongest sales. As for product type, “luxury and value is king. They are the ones leading the way,” he explains.
The increased foot traffic on Thanksgiving evening is a sure indicator that stories will continue to open on Thanksgiving in the future, and likely earlier and earlier. Maloney says that as retailers compete for sales, stores will continue to open earlier until they are open all day.
Still, strong foot traffic on Black Friday is an indicator of a strong holiday season. “Generally speaking, great Black Friday sales will carry through the holiday season,” says Maloney. However, when asked about the estimated 4% increase in sales this year, Maloney was less confident. “I think that is a little on the aggressive side,” he says, adding that weather is a big factor. “Everything would need to align perfectly to pull it above 3%. Remember, we have 6 days less of shopping between Thanksgiving and Christmas this year, and I think that is going to have an impact.”
To help generate the 4% increase during this shorter season, JLL created a retail sales guide of tips for retailers. The list includes ways to navigate ecommerce sales, creating a premium in-store experience and how to make the most of retail space. In some cases, JLL also recommended obtaining short-term holiday leases in high traffic areas to help generate sales.
In addition to short-term leases, a strong holiday season is a good indicator of commercial real estate investment throughout the year. “When people go out and spend, they feel good about things and their job situation,” says Maloney. “When you see strong sales throughout the holiday season, the business confidence level goes up as well. People who are looking to invest in real estate, specifically retail real estate, they will look at those indicators.”
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Kelsi Maree Borland
