MARKET AREA | DEMOGRAPHICS

GLODAL INDUSTRY: SHOPPING CENTERS

Shopping centers are gaining popularity because they include clothing stores, foods, a variety of collections from different retailers or vendors, and much more in one place. This is the major factor driving the market growth. Moreover, shopping centers provide a better consumer experience, allowing them to gain access to various practices such as new product launches, festivals, and events.

Global Industry Forecast

Shopping Centers Market is set to experience a significant growth rate of 5.90 % CAGR from 2022 to 2029. Global Shopping Centers Market is valued at approximately USD 5231.63 billion in 2021 and is anticipated to grow with a healthy growth rate of more than 5.90% over the forecast period 2022-2029.

US INDUSTRY: SHOPPING CENTERS

Shopping malls were already hurting as online shopping gained territory in the United States, but the coronavirus (COVID-19) lockdowns shut most U.S. retail locations. In 2020 alone, the vacancy rate of malls and strip centers reached over 6%, while the number of stores closed by bankrupt mall-based retailers exceeded 5,000. Now more than ever mall operators are shifting from a shopping destination to a “cultural” hub or a retailtainment (retail + entertainment) center, and consumers are embracing it.

US INDUSTRY FORECAST

Economists predict retail sales growth of 0.5% in 2023, or a 0.1% decline when accounting for inflation, before returning to slower growth than pre-pandemic levels afterward. Price growth, meanwhile, will shrink to 0.6% in 2023 from 8.9% in 2022.

PACIFIC NORTHWEST INDUSTRY: SHOPPING CENTERS

While many consumers continue to utilize the conveniences offered by online shopping, much of that growth is driven by multichannel sales, where the physical store still plays an important component in the fulfillment process. As the role of brick-and-mortar stores has evolved in recent years, they remain the primary point of purchase for consumers, accounting for approximately 70% of total retail sales.

Pacific Northwest Industry Forecast

The National Retail Federation issued its annual forecast, anticipating that retail sales will grow between 4% and 6% in 2023. In total, NRF projects that retail sales will reach between $5.13 trillion and $5.23 trillion this year.