press release

Center City Retail Occupancy Shows Resilience Despite National Headwinds, New Report Finds

Contact:
JoAnn Loviglio
215.440.5546
jloviglio@centercityphila.org

For Immediate Release

PHILADELPHIA (November 24, 2025) — Center City Philadelphia is navigating a period of retail transformation, with premier shopping corridors attracting major national brands amid closures reflecting broader industry trends, according to the Center City District's (CCD) annual retail report released today.

The report, based on a comprehensive walking survey of 3,600 storefronts, found overall occupancy holding steady at 84% as of October 2025. But within those numbers are geographic disparities.

Walnut Street leads the pack, with occupancy above 86% west of Broad Street and just

below that on the east side of town. Chestnut Street west of Broad outperforms the east side by 12 percentage points. The office-focused western side of Market Street has the lowest overall occupancy among Center City corridors at 62%, whereas Market East fares better at 72%.

“A combination of corporate restructurings, bankruptcies, macroeconomic uncertainty and competition from online and discount outlets created additional disruption in retail nationwide,” said Clint Randall, CCD vice president of economic development. “While the broader retail environment is challenged by rising prices and less consumer certainty, the outlook for Center City’s retail mix has never been stronger.”

Arrivals and Departures

More than 130 new businesses opened throughout 2025, with some generating significant buzz. Nike chose Philadelphia for the first North American location of its exclusive Jordan World of Flight store, joining only Milan, Tokyo, Seoul, and Beijing.

Other notable arrivals included luxury womenswear brand Aritzia, Abercrombie & Fitch's return to the market, and F1 Arcade, which took over 19,000 square feet previously occupied by West Elm. The dining scene continued its upward trajectory with new concepts from acclaimed local restaurateurs and national operators.

But the year also brought high-profile departures including Macy's, multiple CVS and Rite Aid locations, several Wawa stores, and Iron Hill Brewery, reflecting national disruption driven by corporate restructurings and competition from online retailers.

Open Streets Delivers

Data shows that Open Streets works for retailers. The pedestrian-focused program, which closes streets to cars on select Sundays, expanded to 21 events since launching in September 2024. Participating businesses reported 39% higher sales and 65% more foot traffic compared to typical Sundays, with overall pedestrian volumes jumping 26%.

Competitive Standing

New analysis positioning Rittenhouse Row against comparable urban shopping corridors shows Philadelphia holding its own. Rittenhouse Row has twice the visitor density of Georgetown and more residents within walking distance than Boston's Newbury Street or Chicago's State Street. The 19103 ZIP code ranks as the 10th wealthiest in the nation.

Yet gaps remain. Survey data from nearly 700 Center City apartment renters found those who own cars cite accessing unavailable retail as their top reason for driving. The most requested missing brands include Zara, Nordstrom, and Bloomingdale's.

Growth Despite Challenges

While Philadelphia’s overall population has declined since 2020, core Center City has grown 38% since 2010 to reach 70,421 residents. Daily pedestrian traffic averaged 343,540 people, up 3.4% year-over-year, with Rittenhouse Row seeing particularly strong 9% growth.

Any discussion about ground-floor businesses in the downtown must include its many celebrated restaurants. Philadelphia's culinary scene received international validation when three Center City restaurants earned Michelin one-star distinctions in November — Friday Saturday Sunday, Her Place Supper Club, and Provenance — adding prestige to a district that is home to 199 independent restaurants.

What's Next

The City of Philadelphia launched a formal planning process for Market East in November to develop a vision for the corridor. The biggest opportunity may be The Wanamaker Building, where developers plan to add 650 apartments, office space, and 300,000 square feet of retail beginning in 2026.

With 35 retailers officially announced for 2026 and several still-to-be-announced brands in the pipeline, Center City District is positioned for continued growth while working to address corridors and categories where demand remains unmet.

To read and download the 25-page report, visit centercityphila.org/retail.

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Center City District, in partnership with property owners and downtown stakeholders, is the steward and advocate for a clean, safe, and thriving Center City Philadelphia. Find us at centercityphila.org.