Consumer Trends & Celebrities Shaping the Retail Landscape in 2024: Part 2
In part 1 of CBC’s “Consumer Trends & Celebrities Shaping the Retail Landscape in 2024: Part 1” blog series, we explored the success of entertainment and retail, thanks to public figures like Taylor Swift and Coach Deion Sanders. In part 2, we will dive into second-hand apparel retail trends, the rise in placemaking in retail, as well as entertainment and dining trends.
Secondhand Apparel on the Rise
Placer.ai’s research in their '8 Retail Trends to Watch in 2024' whitepaper highlights the rise in popularity of second-hand apparel amongst consumers. This shift represents a significant number of consumers who value a unique, cost-friendly, and planet-safe clothing experience. Following a strong 2022, the category continues to grow in 2023 – and is likely to strengthen further in 2024 as interest in sustainability and frugality intensifies with high inflation. Placer.ai also explains that second-hand retailers are seeing a sustained increase in visits, with foot traffic up significantly compared both to pre-pandemic 2019 and to last year. The category is gaining ground among younger consumers.
Community Building at the Core of CRE
The evolution toward increased tenant diversity in shopping malls has significantly influenced the landscape of shopping centers in recent years. This trend is expected to reach new heights in 2024. Placemaking, which involves creating public spaces that transcend utilitarian purposes to encourage social interaction and exchange, is a leading focus in numerous urban development initiatives. Already, successful placemaking projects are proving to enhance retail performance.
A crucial element of placemaking involves fostering tenant diversity. Take, for instance, Fenton—a mixed-use district that debuted in Cary, N.C., in June 2022. This undertaking exemplifies the transformative power of placemaking in converting an underutilized space into a dynamic "live-work-play" community catering to individuals and families of all ages. The retail and entertainment village within Fenton boasts an array of shops, restaurants, seasonal attractions, entertainment venues, and other diverse offerings, solidifying Fenton's status as a community hub and a premier destination for residents. Since its introduction in 2022, Fenton has experienced a growth of over 100% in visits, and the median dwell time has surged from 56 to 87 minutes.
Placer.ai’s research underscores how the placemaking trend is making its way across the US. Park Central Mall in Phoenix, AZ, is another great example of successful placemaking. Phoenix's inaugural open-air shopping destination, Park Central, represents a transformative shift as it was reconfigured into a mixed-use development. The complex, which reopened in 2019, now boasts a diverse array of amenities, including restaurants, office space, medical facilities, and bioscience research labs, with ongoing construction focusing on additional hospitality and housing options. Analysis of visit data reveals that the ongoing revitalization of Park Central continues to attract increased foot traffic to the area. Between 2022 and 2023, visits to Park Central surged by 29.2%, accompanied by a growth in median dwell time from 69 to 75 minutes.
Understanding evolving consumer preferences allows investors to make informed decisions about property development, leasing strategies, and overall portfolio management. By staying attuned to retail trends, CRE investors can proactively position themselves to capitalize on emerging opportunities, mitigate risks, and align their investments with the evolving demands of the market, ensuring long-term success in the ever-changing retail environment.
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