US shopping malls see significant rebound in May foot traffic

May 2024 marked a notable resurgence in foot traffic across various US mall types, as highlighted by the latest Placer.ai Mall Index. The index, which tracks visits to 100 top-tier indoor malls, 100 open-air shopping centers, and 100 outlet malls in both urban and suburban areas, revealed significant year-over-year increases in visits. The recovery follows an April slowdown, which was primarily due to the Easter holiday calendar shift rather than any inherent weakness in the retail sector.

Key findings from the report indicate an overall increase in visits, with indoor malls leading the way with an 8.6 percent YoY increase in foot traffic. Open-air shopping centers and outlet malls also showed strong performance, with YoY increases of 6.2 percent and 5.7 percent respectively. Major holidays like Mother’s Day and Memorial Day significantly boosted visits across all mall types, surpassing last year’s levels and underscoring the ongoing strength of the retail category. Outlet malls, in particular, experienced pronounced visit increases during Easter weekend and Memorial Day, while open-air shopping centres saw larger spikes on Mother’s Day.

The uptick in mall visits can be attributed to several factors, including warmer weather and rising consumer confidence amidst slowly easing inflation. Additionally, the performance of malls during key retail milestones in May—Mother’s Day and Memorial Day—played a crucial role in driving the segment forward. For instance, on Mother’s Day, visits to indoor malls, open-air shopping centers, and outlet malls spiked by 15.8 percent, 26.0 percent, and 11.4 percent, respectively, compared to average year-to-date (YTD) Sundays. Similarly, Memorial Day saw a remarkable 123.3 percent increase in visits to outlet malls, reflecting the holiday’s appeal for bargain hunters.

The varying impact of different holidays on mall types offers further insights. Outlet malls excelled during savings-focused holidays like Easter and Memorial Day, attracting shoppers looking for deals. In contrast, open-air shopping centers led in traffic on Mother’s Day, catering to consumers seeking a more upscale shopping experience. Indoor malls consistently benefited from increased traffic during special days, showcasing their broad appeal. Overall, the strong performance in May signals a positive outlook for the mall industry as it heads into the summer months, suggesting a promising shopping season ahead and offering valuable insights for businesses in the fashion and retail sectors to strategize and capitalize on the renewed consumer interest in malls.