SoCal Retailers Must Get Creative as Holiday Shoppers Limit Store Visits
San Diego and Southern California retailers might have trouble attracting holiday shoppers this year, with most consumers visiting only three to five different stores in total, according to a new holiday shopping survey report from JLL. This will force retailers to get creative with their offerings and there is an opportunity to do so.
Craig Killman, managing director of JLL, told GlobeSt.com that this trend affects all socioeconomic levels. Meanwhile, only 7% of consumers will visit over 10 stores.
Physical retail in San Diego and Southern California is maintaining its relevance, with 83% of consumers planning to visit physical stores despite e-commerce growth. However, the focus shifts toward value-oriented big box retailers (with a preference of greater than 60%) over the traditional mall experience.
Many will be influenced by social media, with 90% of consumers who spend more than $100 having researched products of interest online before making a purchase.
Dwell time in the San Diego and Southern California retail market is a critical revenue driver.
Killman said shoppers spend 79% more when they stay over 90 minutes versus quick visits, making the tenant mix and amenities that encourage lingering essential for maximizing per-visitor spending.
Food and beverage integration becomes crucial as more than 80% of shoppers plan to eat and drink during holiday shopping visits, creating significant opportunities for San Diego and Southern California landlords to optimize their dining offerings and food-and-beverage tenants to capitalize on increased foot traffic.
The San Diego and Southern California retail landscape is bifurcating along income lines, Killman said, with affluent shoppers (earning over $125,000 per year) increasing their spending budgets by 26%, while lower-income households are reducing their budgets by almost the same percentage.
Meanwhile, bargain hunting has become a permanent consumer behavior with San Diego and Southern California shoppers. More than 70% prioritize low prices above all other factors, indicating that promotional strategies and deal-focused tenants will be essential for driving shopping throughout the extended holiday season, rather than just on traditional peak days.
Source: GlobeSt/ALM