Shopping centers built around clothing stores are losing foot traffic, and the shift appears permanent. Recent data reveals a steady decline in visits to apparel retailers, while fitness centers, med-spas, off-price chains, and food and beverage tenants attract more consistent, repeat customers.
A webinar on October 6 will examine the numbers and present strategies for property owners to adjust.
Foot traffic tells the story
Placer.ai, a location analytics firm, has tracked the decline in apparel store visits for years. The trend reflects deeper changes in consumer behavior rather than a temporary dip. Fitness studios, med-spas, and discount retailers, meanwhile, report steady or increasing traffic, often from the same shoppers who once frequented malls for clothes.
R.J. Hottovy, Placer.ai’s head of analytical research, will lead the discussion. With nearly two decades of experience in retail, restaurants, and e-commerce, Hottovy previously worked as a consumer equity strategist at Morningstar and held analyst roles at William Blair and Deutsche Bank. He also advises early-stage companies on capital raises and mergers.
Most shopping centers were designed around large apparel anchors that drew crowds. Today, those crowds split into smaller, more frequent visits to different types of businesses. The change reflects not just what people buy but how often they return.
New metrics for tenant success
The webinar will highlight visit frequency as the key metric for evaluating tenants. Instead of relying solely on sales per square foot or occupancy rates, owners now track how often customers return. A med-spa with monthly clients, for instance, can generate more stable traffic than a seasonal clothing store.
Hottovy’s team identified three main factors behind the shift: evolving consumer habits, the rise of experiential retail, and the growing influence of off-price and discount formats. The session will feature case studies of centers that have successfully adjusted their tenant mix, along with income thresholds for different trade areas to help owners target the right businesses.
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For property owners, the challenge extends beyond filling empty spaces. They must ensure those spaces attract traffic that keeps the center viable. That may mean fewer traditional retailers and more service-based or discount tenants, even if it alters the property’s appearance.
The shift requires recognizing that the entire model of shopping center success has changed. Metrics that once worked may no longer be relevant.
A 12- to 24-month playbook
The session will outline steps owners can take over the next two years to adjust their portfolios. These include auditing current tenant performance based on visit frequency, identifying underperforming categories, and testing new tenant mixes in smaller spaces before committing to larger leases.
Hottovy will explain how to use trade-area income data to match tenants with local demand. A center in a higher-income neighborhood, for example, might support more med-spas and boutique fitness studios, while a discount retailer could perform better in another market.
The aim isn’t to eliminate apparel entirely but to reduce dependence on it. Even in centers retaining clothing stores, the mix will likely include more off-price or outlet formats, which draw more frequent visits than full-price retailers.
Property owners, operators, and investors can register for the free webinar. The event, sponsored by an industry network, will focus on data and strategies rather than promotional content.
Vacancy rates in multifamily properties have also influenced tenant demand in mixed-use centers.
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