Market Snapshot

Malls are rebounding and discount stores are thriving

Black Friday has become a global shopping phenomenon, but the extent of its impact varies by region. While it remains an important shopping event everywhere, in some regions Boxing Day plays an equally or even more significant role in holiday sales. Additionally, holiday shopping patterns exhibit regional variations with dollar stores emerging as a popular destination for last-minute bargain hunters.

In October 2023, foot traffic to indoor malls, open-air shopping centers, and outlet malls improved compared to September, though foot traffic still remains below 2022 levels. The extended holiday season may be bringing shoppers back to malls, but even with the recent improvements, mall visits are shorter than they were in 2022, suggesting that shoppers are making strategic budgeting decisions. Shoppers are also spending more time on each visit which could be a sign that they are trying to consolidate their errands. The most recent data suggests that a wider retail downturn may be at play, while the mall industry is still slowly recovering from the pandemic.

With Five Below, Ollie's Bargain Outlet, and Dollar Tree leading the pack, discount and dollar chains are continuing to perform very well into the holiday season. As one of the few retail segments that benefits from an economy slowed by inflation, these stores offer the smart shopper the most bang for their overstretched buck. We expect to see this trend continue through the rest of the year as shoppers stock up on necessities and seek to find the best deals on gifts and small luxury items.