In-store traffic expected to fully rebound by Q3

By: Trademagazin editor Date: 2024. 05. 24. 09:36

CBRE is predicting retail foot traffic to fully recover from the post-pandemic lull later this year.

The real estate investment firm says that according to its latest data, foot traffic in prime trade areas is expected to fully recover to pre-pandemic levels by the third quarter and surpass those levels by 2025.

By the fourth quarter of last year, foot traffic in 10 prime trade areas tracked by foot traffic analytics firm Placer.ai had reached 81% of 2019’s levels, demonstrating a strong recovery. Recent data from the firm showed that visits to major retailers were largely up in the first quarter of this year compared to 2023 levels.

Record-low availability and increasing rents are leading to a rise in street-retail districts. CBRE says rents in prime trade areas have seen an increase of 9% in the Americas and 5.8% globally since 2021.

Despite a rise in omnichannel shopping, retailers know the importance of having a physical store alongside their online presence, as almost 70% of retail sales are digitally influenced. According to Forrester’s 2023 Retail Competition Tracker, in-store sales accounted for 78% of sales growth in 2022, a significant increase from 46% in 2019.

The shopping center industry association ICSC estimates that opening a store can boost a retailer’s digital sales by nearly 7%. Conversely, closing a store can suppress digital sales by 11.5%.

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