By Joshua Burd
Retailers in and around New Jersey were largely optimistic ahead of a critical holiday shopping season, while still grappling with concerns about inflation and other economic pressures.
Such are the findings of Levin Management Corp.’s annual Pre-Holiday Sentiment Survey, which polls tenants across the firm’s 125-property, 16 million-square-foot leasing and management portfolio. The survey found that nearly 64 percent of participants anticipated positive holiday performance, representing a “solid majority” but a decline of 8 percentage points from last year, reflecting looming unease in the market.
LMC also found a 4.6 percentage point increase in participants who have uncertain performance expectations, while nearly 25 percent of respondents are not sure how the season will play out.
“By all accounts, the retail industry has been enjoying a post-pandemic resurgence in 2022, and optimism continues,” said Matthew K. Harding, the North Plainfield-based firm’s CEO, reporting the survey findings in early November. “However, there is an overarching sense we are in changeable times — a sentiment extending well beyond the retail sector.”
Tenants saw inflation as the factor most likely to shape holiday performance, according to the survey results, followed by shifting economic conditions and consumer confidence. Respondents expect those headwinds to impact everything from holiday spending and peak sales periods to retailers’ customer engagement efforts, LMC said, even as industry-tracking organizations such as Deloitte and ICSC forecast healthy seasonal spending in 2022.
“These studies indicate consumers plan to spend more on holiday shopping this year, partly due to the simple fact things cost more, but also because they want to treat their loved ones and celebrate the season,” Harding said. “They also report that inflation pressures have consumers focused on finding the best deals, and early-season promotions will be especially popular.”
The research aligns with the LMC survey findings, which point to a front-loaded season, according to a news release. Just under half of participants expected their sales to peak before or during the Thanksgiving and Black Friday weekend, up slightly from last year, as shoppers continue to drift toward earlier holiday shopping.
LMC added that retailers are looking past factors beyond their control and focusing their energy in areas where they can move the needle this holiday season. Nearly one-quarter of respondents said they were trying new ways to enhance customers’ holiday shopping experiences, such as loyalty programs, stepped-up customer service initiatives and adoption of conveniences like click-and-collect and same-day delivery service.
“When it comes to marketing, it is so important to evolve and take advantage of new opportunities,” said Melissa Sievwright, LMC’s vice president of marketing. “We are observing a laser focus on building customer relationships, which is crucial for brick-and-mortar as retailers work to counter e-commerce growth and gain market share within their competitive set. Companies that are in-tune with what inflation-stressed consumers want — value, convenience and service – are well positioned to prosper this holiday season and beyond.”
Sievwright noted several tenants pointed to the incorporation of in-store events for the 2022 holiday season, marking a welcome post-pandemic development.
“While we may be past the ‘revenge shopping’ of 2021 — when pent-up demand fueled record sales — we see no lack of enthusiasm for being out in the world, shopping in stores and experiencing some in-person holiday cheer,” she said.
