Shoppers and retailers are returning to malls post-pandemic

Americans are shopping at top malls again. Foot traffic numbers at Class A malls are showing strong momentum during the past few months compared with the same period in 2019, before the pandemic’s disruption, according to Placer.ai, which analyzed anonymized location data from consumers’ devices at more than 50 Class A urban and suburban malls.

Visits to U.S. malls declined only 18.7 percent from April 2019 to April 2021, according to Placer.ai. That may not sound like much to trumpet, but visits had down 24 percent the previous month compared with two years prior. The improvement is a signal that consumers are returning, the firm says. February 2021 visits were down almost 33 percent compared to February 2019, so the foot traffic gap has nearly halved in only two months. Once the economy is fully reopen, the numbers will keep improving, Placer.ai projects.

Shoppers are returning to Simon’s properties, chairman, president and CEO David Simon said on the mall landlord’s first-quarter earnings call. “The improving domestic economic environment and shopper sentiment have increased shopper foot traffic and sales across our portfolio. Increased traffic for our open-air and suburban centers has been very encouraging, and retail sales continue to improve across the portfolio with higher sales volumes in March compared to 2019 levels.”

And it’s not just consumers returning to malls. Retailers are leasing space, too. Fast-fashion chain Primark cut a deal to open stores at two Macerich properties: Tysons Corner Center in McLean, Virginia, and Green Acres Mall in Valley Stream, New York. The Green Acres store will replace the mall’s former JCPenney anchor. Leasing demand across the Macerich portfolio is on pace with pre-COVID, 2019 levels, according to the company. In 2021, Macerich says, shopper traffic and sales continue to rise with the loosening of restrictions in its major markets. Primark currently has 12 stores in the U.S.

Meanwhile, Simon signed 1,100 leases for 4.4 million square feet during the first quarter. “We have a significant number of leases in our pipeline,” David Simon said. “Our leasing volume in both number of leases and in square feet was greater than the volume in each of the first quarters of 2020 and 2019.”

Tanger centers are becoming literal hives of activity

A new partnership is bound to create buzz for Tanger Outlets. Urban beekeeping company Alveole will install rooftop beehives at six Tanger outlet centers across the U.S. The beehives will help Tanger create a more sustainable business and help revive biodiversity in surrounding urban ecosystems, the company says. Alveole and Tanger will operate educational workshops and events and an interactive online platform focused on the beehives to help entertain consumers and educate them about the environment. An Alveole beehive installation in Dallas is pictured at top.

Federal is budgeting $75 million for redevelopments and repositionings

Federal is ready to spend big renovating its properties to give them an edge with expanding retailers in competitive markets, president and CEO Donald Wood said on the REIT’s first-quarter earnings call. “We’ve turned up the heat on the number and the scope of shopping center redevelopments and repositionings that are or about to be underway,” Wood said. Federal is budgeting $75 million this year to upgrade 17 of its 100 properties to ensure they remain relevant and best in class in a post-COVID-19 environment. “More gathering areas, more outdoor seating, more designated curbside pickup spots, better landscaping, covered walkways — you get the idea,” Wood said. “Everything is aimed at ensuring our properties are the consolidators in their given submarket.”