Shopping center

Holiday sales expected to rise 6.7%, shopping center group forecast

The leading industry association of mall and shopping center owners is cautiously optimistic about the holiday season, after its annual holiday survey showed consumers expect to increase their holiday spending by 6.7% This year.

The ICSC (also known by its original name, the International Council of Shopping Centers) today released the results of its survey of holiday shopping intentions.

The survey found that while inflation is a major consumer concern, shoppers expect to continue spending. The ICSC projects total spending, including meals, of $1.56 trillion from October through December.

Rising costs are one of the main reasons consumers expect to spend more this holiday season, but some also said they expect bigger celebrations this year (20%) or shopping additional gifts for family and friends (25%).

“Shoppers continue to spend despite inflation and economic headwinds, and while higher prices will drive some of the increase in holiday spending this year, retailers as a whole are poised for a successful holiday season. “, said Tom McGee, president and CEO of ICSC, in announcing the results of the investigation.

A particularly promising indicator for retail stores, malls and malls is that consumers are expected to increase the time they spend in stores this year, compared to the past two pandemic years.

“Two years ago everyone was talking about people never going back to in-person shopping because they’ve become so familiar with shopping online, but we’re seeing the rate of shopping online has come down to this than it was pre-pandemic, and people are coming back to stores,” said Stephanie Cegielski, vice president of research and public relations at ICSC in an interview.

“I think they’ll continue to do that over the holiday season, partly because it’s nice to go out and people like to go into stores and see them decorated,” Cegielski said.

Consumers also continue to use the buy-on-line, pick-up-in-store option in large numbers. “Typically two-thirds of those shoppers make additional purchases while they pick up that item, so that’s really good for the retailer,” she said.

Fifty-seven percent of shoppers surveyed said they plan to self-collect items from stores to avoid shipping delays, an increase of 17 points from the 2021 survey.

The mood among ICSC members is cautiously optimistic heading into the season, Cegielski said. Despite news about inflation, potential recession and excess inventory, “our members say people are still going to go out and shop, they’re still going to go out and dine, and they’re very optimistic heading into this season. parties,” she said.

The survey found that consumers expect to spend 9.9% more on dining out this holiday season.

Inflation concerns will cause consumers to shop earlier, seek out deals and promotions, and visit retailers known for their lower prices, according to the survey.

The survey revealed that 81% of shoppers plan to visit a mall during the holiday season. Of these, 51% said they will visit enclosed malls, 56% will visit malls, 46% will visit neighborhood or community malls, and 34% will visit malls, which typically include multiple high street retailers. surface.