Holiday retail spending is projected to reach its highest levels since 2019, with an average consumer increase of 32%, according to a recent JLL survey.
Executive Vice President of Retail Advisory Services at JLL, Casdin Parr shared his insights on these findings in a recent conversation.
“I think we were all pleasantly surprised to see some of those results,” said Parr. “I’d be lying if I anticipated that level of increase, but it’s a testament to the hard work of both the economy and the retail community over the last year. Shopping centres and high streets are looking better than ever, offering exceptional customer experiences.”
This year, Black Friday arrives with heightened consumer enthusiasm. Parr noted that shoppers are already flooding malls ahead of the big day, signaling a strong trend. “We’ve seen shopping centres busier than ever, with traffic levels surpassing pre-COVID Black Friday activity. People are spending but still looking for value, which is driving robust traffic and deal-seeking behaviour.”
While online shopping surged during the pandemic, Canadians have rediscovered the allure of in-person shopping, particularly in shopping centres. According to Parr, 99% of survey respondents plan to visit a mall this holiday season. “This is uniquely Canadian. It reflects the quality experiences our shopping centres provide, from coast to coast,” he said.
Central to this resurgence is the emphasis on immersive experiences. “Shopping centres have excelled at creating memorable environments,” Parr explained. “From Santa visits to stunning decorations, these activations are crucial. We’ve also seen elevated food and beverage offerings, like Toronto Eaton Centre’s Queen’s Cross Food Hall, which enhance the overall customer journey.”
Gift cards remain a perennial favorite for holiday shoppers, with their popularity steadily increasing. “They may not be the flashiest gift, but they offer flexibility and ensure recipients get exactly what they want,” Parr remarked. “This trend also benefits retailers, as those dollars go right back into the economy.”
However, the holiday season is also a critical period for retailers. “For many, these six weeks can make or break their year,” Parr said. Recent challenges, such as Stokes filing for creditor protection, underscore the stakes. Yet Parr remains optimistic. “Heading into Q4, the business has been healthier than I can recall. We’re seeing retailers grow market share and new international brands entering Canada. It’s an exciting time.”
As Canadian consumers gear up for the holidays, the sector is positioned for a strong finish to 2024 and an even brighter 2025.
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