By Joshua Burd
Retailers in the region have enjoyed healthy sales and in-store traffic year to date, according to a new survey, paving the way for continued momentum despite global economic uncertainty.
Among those polled by Levin Management Corp., the North Plainfield-based real estate services firm, 75.2 percent said their sales at midyear have met or exceeded the first six months of 2024. The same percentage reported the same or higher traffic — an all-time high for the company’s Mid-Year Retail Sentiment Survey — while more than 82 percent expect sales to increase or maintain that pace through year-end.
“We asked store managers within our leasing and management portfolio whether economic conditions, trade policy or consumer sentiment during the past six months changed their outlook for 2025,” said Matthew K. Harding, CEO of Levin Management Corp. “With under 30 percent answering in the affirmative, we see a clear indication that retailer performance expectations are less tied to shifting conditions than in the past few years. The bottom line is people are shopping and spending.”
LMC’s midyear survey findings also point to brick-and-mortar retailers embracing technology innovations, with 44 percent saying their company is making new tech investments this year, according to a news release. Smaller but increasing contingents say they’re actively engaging artificial intelligence to benefit their businesses — reaching 20.2 percent this year — while 35.4 percent are exploring the use of AI tools.
Those rates are up from 11.8 percent and 20.6 percent in 2024, respectively.
“AI is revolutionizing retail, and our tenants are using chatbots and other tools to improve customer communication, personalize product suggestions and schedule appointments and deliveries,” said Melissa Sievwright, LMC’s vice president of marketing. “On the business end, AI is being leveraged for inventory control and demand forecasting, marketing and more.”
Sievwright also pointed to retail tenants’ push to provide fulfillment flexibility and a convenience-focused in-store experience. To that end, 38.1 percent of LMC midyear survey respondents say they are looking at new ways to better integrate customers’ in-location and online experiences.
The firm also found that buy online, pick up in-store is the most popular in-place fulfillment option and currently offered by 54 percent of those polled, followed by local delivery and ship-from-store, which were both used by 32.5 percent of respondents. The most-offered in-store convenience technology ties to digital coupons, discounts and loyalty points, followed by electronic receipts and free WiFi.
What’s more, the LMC survey points to the growing mix of tools tenants are using to amplify their brands and win business, increasingly through a host of digital channels, the news release said. Standouts include social media (used by 65.3 percent of respondents), email marketing (62.7 percent) and loyalty/rewards program platforms (47.5 percent), while more than one-third of survey participants are actively incorporating content marketing, display or banner ads, search engine marketing and search engine optimization in their digital mix.
“Social media’s dominance is no surprise, especially with platforms like Facebook, Instagram and TikTok quickly evolving into cost-effective advertising and direct sales channels,” Sievwright said. “Those three platforms for several years have ranked as the most popular social media options in our midyear survey.”
Notably, 50 percent of respondents who are active on social media say they use paid options such as ads or boosted content, though only 14.4 percent are currently selling directly within social media platforms, LMC said. For the first time, the midyear survey asked store managers whether they are partnering with influencers in their digital marketing efforts, prompting about one-quarter of participants to say they’re using influencers to help promote their brand or products.
