Mixed-use developers are redefining the retail landscape by prioritizing quality over quantity and creating spaces that emphasize experiences and engagement. At the recent ICSC event in New York City, industry leaders highlighted the need for thoughtful design tailored to consumer demands. “One size no longer fits all,” said Brandon Eisner of Newmark, emphasizing the importance of curating dynamic, customer-centric spaces.

Key trends shaping the future include catering to Millennials and Gen Z, who crave unique, in-person experiences that go beyond the transactional. Developers are also focusing on creating vibrant gathering spaces—think pickleball courts, green areas for yoga, and entertainment venues—to foster community connections. Additionally, the renewed focus on wellness is driving innovation, from fitness classes and medical services to amenities like e-bike access. As John Fahey of SRS Real Estate Partners noted, success lies in embracing fresh, creative concepts that ensure long-term vitality for mixed-use centers.

Gordon Brothers is offering Big Lots leases for sale nationwide, presenting a golden opportunity for retailers looking to expand. Spanning 47 states, these shopping center locations range from 19,000 to 55,000 square feet and feature long-term, below-market rents. Interested buyers have until January 24 to make offers.

“This is the perfect chance for retailers to grow their footprint with well-located, turnkey spaces,” said Michael Burden, co-head of North America real estate at Gordon Brothers.

Earlier this month, Gordon Brothers helped Big Lots avoid liquidation through a strategic sale, keeping hundreds of stores open and preserving thousands of jobs. Variety Wholesalers acquired over 200 Big Lots locations and plans to continue operations under the brand name, supported by Gordon Brothers’ ongoing real estate services. This comprehensive strategy allows Big Lots to transition smoothly while retaining its legacy and serving customers nationwide.

Macy’s is closing 66 stores across 22 states as part of its “Bold New Chapter” strategy to streamline operations and focus on high-performing locations. California and New York will see the highest number of closures, including the historic Wanamaker building store in Philadelphia.

While the closures mark a significant shift, Macy’s plans to invest heavily in 350 “go-forward” stores by 2026, building on the success of its initial pilot locations, which have driven consecutive sales growth and record customer satisfaction. “We are prioritizing resources to elevate the shopping experience where it matters most,” said CEO Tony Spring.

With these strategic changes, Macy’s aims to position itself for sustainable growth, focusing on fewer but more impactful locations while enhancing its digital channels.

Service-based retailers have taken the lead in acquiring retail real estate for the first time, according to CoStar’s latest report. Foodservice tenants dominated the scene, accounting for over 20% of leasing activity in 2024, with fitness brands and health care and education tenants following close behind.

Brandon Svec, CoStar’s national director of retail analytics, attributes this shift to pandemic-era adaptations and changing consumer priorities. Restaurants adapted to takeout and delivery during lockdowns, and post-pandemic dining out became a favored “affordable luxury.” Meanwhile, fitness centers, once overlooked due to parking concerns, are now star tenants driving traffic to neighborhood centers. “The TikTok generation has made fitness a key part of their personal brands,” Svec noted.

Demographics also play a role, with declining marriage and birth rates giving younger consumers more disposable income, which they’re channeling into experiences like dining, fitness, and pet care. It’s a new era for retail real estate, driven by lifestyle trends and evolving consumer habits.

Retail visits in 2024 saw modest growth, increasing 0.4% year-over-year, with seven months recording gains, according to Placer.ai’s Retail Foot Traffic Recap. March (+3.2%), August (+2.5%), and February (+2.4%) led the charge, while categories like discount & dollar stores (+2.8%) and superstores (+1.7%) outpaced overall growth, highlighting consumer demand for value. Beauty & spa (+1.6%) and clothing (+1.5%) also showed positive trends, while furniture & home furnishings rebounded strongly in Q4 (+3.5%) after a tough start.

State-level standouts included Maine (+2.2%) and North Dakota (+2.0%), where domestic migration and value-focused retail played key roles in boosting foot traffic. However, electronics (-3.5%), pet stores (-2.9%), and pharmacies (-2.1%) faced notable declines, reflecting evolving consumer priorities.

Despite a year-end dip in December, malls had a strong 2024 overall, with foot traffic exceeding 2023 levels. According to Placer.ai’s Mall Index, visits to indoor malls rose 1.5% year-over-year, while open-air shopping centers saw a 1.7% increase. Outlet malls, which cater to lower-income shoppers, remained flat (-0.4%) for the year.

December saw declines across all mall types—outlet malls (-1.6%), open-air centers (-0.7%), and indoor malls (-0.2%)—following a bustling November boosted by Black Friday weekend. Notably, holiday shopping between Black Friday and New Year’s Eve drove significant traffic spikes: 59.3% at outlet malls, 57% at indoor malls, and 31.4% at open-air centers.

"The income levels of visitors likely influenced performance," said Shira Petrack of Placer.ai, with open-air centers benefiting from more affluent shoppers less impacted by economic challenges.

Big Lots is getting a lifeline after filing for bankruptcy in September. The discount retailer has struck a deal with Gordon Brothers Retail Partner, allowing its stores, distribution centers, and intellectual property to be transferred to other companies, including Variety Wholesalers, Inc.

Variety Wholesalers, which operates banners like Roses and Maxway, plans to acquire 200 to 400 Big Lots stores and up to two distribution centers, keeping them under the Big Lots brand. The company may also employ existing Big Lots employees, offering a path to preserve jobs and maintain the brand's presence.

“This sale represents a significant opportunity to preserve jobs and continue the Big Lots legacy,” said CEO Bruce Thorn. With the deal pending bankruptcy court approval, this partnership aims to breathe new life into the struggling retailer and its team.