Consumer holiday spending to climb 4.5%; promotions will be key
A new holiday forecast offers more good news for retailers.
Shoppers will spend $807 billion on holiday gifts and other item this year, an increase of 4.5% over last year, with $685 billion spent on gifts and other items and $122 billion on food and beverage, according to a survey by the International Council of Shopping Centers.
According to ICSC, 84% of shoppers will visit a mall or shopping center throughout the holidays, and retailers who embrace omnichannel will benefit the greatest. Of the 40% of consumers who will use click-and-collect, 82% expect to spend additional money at that store.
“Our annual Holiday Shopping Intentions Survey findings demonstrate that consumers remain confident in the economy,” said Tom McGee, president and CEO, ICSC. “Shoppers want a combination of convenience and experience, and the retailers with the best omnichannel strategy are poised for success this holiday season.”
According to the survey, the average consumer plans to spend $706.40 this holiday season, with $522.00 allotted for gifts. Overall, 92% of U.S. consumers plan to purchase holiday gifts and other holiday items. Over half (54%) plan to spend more this year than last year, with more than one quarter (28%) pointing to a change in job status or income as a factor in their increased spend.
Approximately one in four consumers are planning to buy big-ticket items such as household appliances or jewelry. Forty-percent are expected to buy electronics; 64% plan to buy gift cards; 52% plan to buy apparel and footwear; and 49% plan to buy toys and games.
The survey found that promotions will be one of the biggest influences in purchasing at a physical location this year:
• Overall, 74% of holiday shoppers say that promotions play a role in their holiday shopping.
• 63% plan their holiday shopping around specific promotional events/dates such as Black Friday, Cyber Monday, Super Saturday and/or other big sales.
• 47% state that once they are in a store, the promotions they see influence the holiday purchases they make.
• 20% state they are more influenced by promotions on social media compared with other mediums.
The ICSC survey comes on the heels of the National Retail Federation’s holiday forecast, which expects holiday retail sales in November and December — excluding automobiles, gasoline and restaurants — to increase between 4.3% and 4.8% over 2017 for a total of $717.45 billion to $720.89 billion.
Jll to manage former Toys ‘R’ Us retail properties
Jll’s retail management portfolio just got a lot bigger.
The firm announced today that it has been tapped by private real estate investment and advisory firm Raider Hill Advisors to manage the Toys “R” Us Propco I Portfolio, which contains former Toys “R” Us and Babies “R” Us retail properties, including building leases, ground leases, and fee simple owned buildings.
Jll will be responsible for the retail management, facility management, tenant coordination, construction, accounting and real estate tax services for the retail properties in the portfolio.
This move adds 13.4 million sq. ft. of retail space at approximately 275 properties across 46 states to JLL’s retail portfolio under management.
“JLL’s depth of experience with portfolio transitions of this scale gives us great confidence in their ability to seamlessly assume the property management responsibilities of Propco I,” said Joseph Tichar, president & COO of Raider Hill Advisors.
Raider Hill Advisors was named exclusive real estate advisor to Propco I in July, where it provided day-to-day operational oversight including leasing, redevelopment, asset management, and disposition activities for the portfolio.
Net lease brokers reach the pinnacle at CBRE
Chris Bosworth and Will Pike, who together lead the Net Lease Properties business at CBRE, have both been named vice chairmen. It is the highest-ranking title available to brokers at the global real estate services firm.
“Our Net Lease Properties practice, formed and run by Will and Chris, is incredibly successful and stands out in the industry as the leading single-tenant net lease brokerage team in the United States,” said Chris Ludeman, Global president, Capital Markets, CBRE.
Bosworth, who joined CBRE in 1999, is also a founding member of the firm’s Corporate Capital Markets practice. He is the first retail-focused capital markets professional in the firm’s history to be named vice chairman.
Pike, who joined the company in 2004, is a founding member of Corporate Capital Markets, head of Retail-Occupier Capital Markets, and currently serves on the board for CBRE’s Investment Properties and Americas Brokerage divisions.
In their careers, Pike and Bosworth have executed more than $16 billion worth of assignments spanning more than 2,600 properties. Since 2016, the team has been responsible for the disposition of 720 properties with a value of over $8.2 billion.