Unwrapping Holiday Retail Trends: Insights From a Denver Mall CEO

The holiday shopping season is in full swing and managing the increased foot traffic in shopping malls around this time of the year can be challenging, but Nick LeMasters knows exactly how to maximize success. He’s the CEO of Cherry Creek North, a walkable open-air shopping and lifestyle district close to downtown Denver, and has decades of experience in the retail real estate industry.

Commercial Property Executive talked to LeMasters about shopping mall safety during the busiest time of the year, what it takes to manage the influx of shoppers, as well as trends he’s seeing in the retail real estate space.

Beyond special deals and offers, what matters most to shoppers and how are retail managers responding?

LeMasters: Let’s begin with the basics: the blocking and tackling of retail real estate. Owners and property managers have an obligation to ensure the safety and convenience of the retail shopper and their tenants. Without these two fundamental conditions in place, it will be very difficult to attract customers. Properties that carry negative perceptions regarding personal safety will be challenged. Convenience takes the form of abundant parking and pedestrian access.

READ ALSO: Shopping Changed Dramatically. Retail Design Is One Step Ahead.

How have retailers and landlords prepared for the increase in foot traffic across their physical stores? 

LeMasters: Preparations for increased foot traffic are centered on two primary activities: inventory and sales help. Both activities need to be carefully balanced. Inventory levels should reflect current purchasing trends that customers have exhibited. Are there specific fashions, brands, colors, or other factors that will help to increase gross margins and minimize seasonal markdowns? No one wants to see a customer walk away disappointed that they were unable to secure the item(s) that they had intended to purchase.

In this current economic environment, workforce issues are a significant concern for retailers. Locating and hiring qualified staff has long been a priority for the retail community but the challenge has become greater given a limited supply of qualified applicants.

Are there any lessons from previous holiday seasons that retailers can successfully apply this year? What common pitfalls should they avoid?

LeMasters: Experienced retailers are constantly learning from previous holiday seasons. Those that are successful have learned to refine their offering and stay in touch with their customers’ wants and needs. The most common pitfall that retailers must be aware of is to ensure the proper training of their sales staff. The holiday season becomes all-consuming for retail managers. Despite the demands of the season, managers must make time to train staff members and provide guidance and clear expectations. A well-trained staff will go a long way to ensuring a successful and profitable holiday season.

In-store versus online shopping this holiday season—what will be the balance?

LeMasters: Despite the perceived threat that online shopping has become, one thing has proven to be true: The death of brick-and-mortar retail has been highly exaggerated. In today’s retail environment, online and brick-and-mortar retail have seamlessly coexisted. Online shopping will continue to grow but not at the expense of the physical retail store.

Customers have proven to be resilient and loyal to their favorite retail store. The social engagement and touch and feel of the merchandise cannot be replicated online. The best and brightest of retailers have learned that they no longer must choose between these two formats. They have adopted both and have found ways to satisfy the customers’ needs regardless of the format that they have chosen.

How much will experiential retail drive business success this holiday season?

LeMasters: Experiential retail—while growing in its importance—should not be expected to drive retail success in 2024. Landlords will continue to identify and place attractive experiential concepts in their properties—and they should. Apparel, jewelry, electronics, toys and other traditional gift items should be expected to carry the day for most retailers.

What are your expectations for retail real estate performance when it comes to urban versus suburban assets?

LeMasters: Landlords evaluate performance on a property by property level in every market in which they have a presence. Many central business districts throughout the country continue to experience challenges related to slow return-to-office policies thus reducing daytime foot traffic. Additionally, many of these same CBDs continue to be challenged with vagrancy, homelessness and perceived safety concerns. Urban centers that have effectively addressed these societal issues should be fine. Those that have not or have been unsuccessful may see continued challenges. In those markets, customers may prefer the suburban experience even though it may require a longer drive.

How can retailers leverage data analytics to improve their holiday season strategies?

LeMasters: Data analytics can be a useful tool in evaluating holiday season strategies. Analytics—when properly applied—can inform retailers on several levels. For example, the use of technologies like Placer.ai can reveal demographic information that is useful in targeting customers in specific zip codes and neighborhoods that fit the profile of those the retailer believes can be attractive and potentially profitable.

To what extent could shopping trends this holiday season impact retail real estate in 2025?

LeMasters: Shopping trends that emerge from the 2024 holiday season will undoubtedly affect retail real estate decisions in the coming year. Owners, managers and brokers will maintain a keen eye on emerging and existing retail concepts that are performing well. These concepts will be targeted for expansion into new markets or additional store locations within an existing metro area.

What final advice would you give to retailers looking to maximize their success during this holiday season and beyond?

LeMasters: To maximize success during this holiday season, retailers should focus on a few key actions. Hiring and training qualified staff is essential. Consider bringing on regular customers who already trust the brand and can speak from experience. Effective communication with customers is also crucial, leveraging social media platforms with engaging content, especially videos.

Creating a welcoming store environment with friendly staff, refreshments, music and activities can help engage customers for longer periods. Beyond the season, retailers should continue to evaluate their location and determine if it best fits their needs and that of their customer.

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