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News release

CHICAGO, IL

Retailers Keep it Simple for Shoppers this Holiday Season

JLL’s Holiday Sentiment Survey of mall retailers indicates an uptick in customer service offerings this holiday season 


CHICAGO, Nov. 11, 2015 – Shoppers have more money in their pockets this holiday season, as unemployment remains at a post-recession low and fuel prices remain low. However, in a competitive retail market, standing out among the competition is a major feat. According to new data from JLL’s 2015 Holiday Sentiment Report, which includes feedback from largely national or global retailers in JLL-managed shopping centers across the United States, this year’s differentiator will hinge on simplifying things for consumers by offering integrated online and in-store purchasing.

“The retailers who will stand out from the pack this year will be those who push the envelope on convenience offerings, without taking it to the point where it hurts the bottom line,” said Naveen Jaggi, President of Retail Brokerage, JLL. “While more than 90 percent of total retail sales in the U.S. are generated at brick-and-mortar stores, this holiday season we’re seeing even tighter, more unified sales platforms that allow easy pick-up and return options.”

Retailers are narrowing the gap between online offerings and in-store shopping and embracing so-called “frictionless” commerce. This year, there has been a marked uptick in services focused on convenience. Price, accessibility and selection are at the top of holiday shopper’s lists, which is why nearly half of retailers surveyed plan to offer free shipping or ship-from-store to consumers this holiday season, a 12 percent increase over last year. Similarly, online ordering and in-store pick-up will be offered by 44 percent of retailers surveyed, an uptick of approximately six percentage points from last year. Conversely, additional holiday perks like free gift with purchase, geo-location based discounts, free layaway and in-store entertainment showed little change compared to last year.

“Consumers are cost conscious and time averse, demanding products where they want them, when they want them. Convenience is driving their buying decisions and impacting how retailers are meeting their needs this holiday season. Retailers are embracing the strategy to keep it simple this holiday season, which shows just how in charge today’s customers are,” said Holly Rome, Director of National Retail Leasing, JLL. “We find that internet users are picking up their purchases in-store to save on shipping charges and get their goods faster, while brick-and-mortar shoppers are using online platforms to research a product before they shop.”

Some retailers will employ technology to earn sales, although the prevalence of easy mobile payments and fast delivery is still years from ubiquity. Only 30 percent of retailers indicated they will have easy check-out with iPads or mobile payments. A shy 8 percent will offer same-day delivery as part of their program to woo customers.
For more information on JLL’s 2015 Holiday Sentiment Survey visit: www.jllretail.com

Methodology
JLL surveyed retail tenants in shopping centers in 17 states between September 18 and October 5, 2015. Slightly more than 40 percent (41 percent) of survey respondents were apparel retailers. Other major categories of respondents include Restaurant, Food and Beverage (13.1 percent) Jewelry (8.0 percent) and Luxury (5.6 percent). Nearly 70 (69.0) percent of respondents were inline retail locations, while 76.2 percent occupied stores under 5,000 square feet. Another 45.4 percent were single locations or part of local and regional chains.

JLL’s retail business serves as an industry leader in retail real estate services. The firm’s more than 800 dedicated retail experts in the Americas partner with investors and occupiers around the globe to support and shape investment and site selection strategies. Its retail specialists provide independent and expert advice to clients, backed by industry-leading research that delivers maximum value throughout the entire lifecycle of an asset or lease. The firm has more than 130 retail brokerage experts spanning more than 30 major markets, representing more than 680 retail clients. As the largest third party retail property manager in the United States, JLL is currently handling the management, leasing and/or disposition of more than 710 centers, totaling 83 million square feet specializing in regional malls, lifestyle centers, grocery-anchored centers, power centers, central business districts, transportation facilities and mixed-use projects.  For more news, videos and research from JLL’s Retail Group, please visit: www.jllretail.com.

About JLL
JLL (NYSE: JLL) is a professional services and investment management firm offering specialized real estate services to clients seeking increased value by owning, occupying and investing in real estate. A Fortune 500 company with annual fee revenue of $4.7 billion and gross revenue of $5.4 billion, JLL has more than 230 corporate offices, operates in 80 countries and has a global workforce of approximately 58,000.  On behalf of its clients, the firm provides management and real estate outsourcing services for a property portfolio of 3.4 billion square feet, or 316 million square meters, and completed $118 billion in sales, acquisitions and finance transactions in 2014. Its investment management business, LaSalle Investment Management, has $57.2 billion of real estate assets under management. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit www.jll.com.