Contact:
JoAnn Loviglio
T 215.440.5546
pr@centercityphila.org

FOR IMMEDIATE RELEASE

Occupancy ticks down due to major brands contracting nationwide, but growth continues on Walnut Street and East Market corridors

PHILADELPHIA (June 25, 2024) – Largely due to national brands shuttering stores across the country, retail occupancy in Center City experienced a 0.9% downtick during the first half of 2024, but the key shopping corridors on East Market and West Walnut streets continue to see new tenants along with rising foot traffic, a just-released retail update from Center City District (CCD) has found.

Among the report’s main takeaways:

• Retail occupancy within Center City District boundaries is 83.6%, down from 84.5% in September 2023.
• 74 new retailers have opened recently or will open later in 2024 across the downtown.
• Center City compares favorably to the region’s two largest suburban malls not only in terms of accessibility to the largest volumes of shoppers, but also in terms of proximity to concentrations of wealth. A new Business Journals analysis of the 1,000 wealthiest ZIP codes nationwide reveals that the Philadelphia region’s four wealthiest ZIP codes are all in Greater Center City.
• The downtown’s superior accessibility, improving safety, growing local population of young people and established concentrations of wealth thanks to high population density tee up a strong environment for attracting new and returning retailers to Center City.

“Every metric that’s used to assess the viability and appeal of sites for retailers is moving in the right direction,” CCD President & CEO Prema Katari Gupta said. “The crime rate continues to fall, foot traffic continues to climb, and residential buildings are coming online and filling up primarily with Gen Z, millennial, and empty nester residents, and there’s more outdoor seating on Center City sidewalks today than we had five years ago. So far this year, 41 new retailers have opened and at least 33 more are expected by year’s end.”

The dip in Center City retail occupancy is reflective of the contraction of several national brands. For example, the bankruptcy announcement of multi-brand fashion retailer Express Inc. resulted in the closure of three different Center City storefronts, though a recent acquisition is bringing the brand out of bankruptcy and may reverse some or all of these closures. Allbirds and Outdoor Voices also shuttered stores here as part of a national move away from brick-and-mortar.

Despite the recent store closings, two strong positive trends are playing out in Center City’s retail landscape: the expansion of digitally native brands into brick-and-mortar locations and the growth of experiential and entertainment concepts. Both of these retail categories cater primarily to millennial and Gen Z consumers, so it’s no surprise that Greater Center City’s demographics are a magnet for apparel and nightlife concepts such as Aritzia, Reformation, Flight Club, and Puttshack.

For the first time, CCD’s research team conducted a comparative examination of the retail ecosystem in Center City and two of the region’s largest suburban shopping malls: Cherry Hill Mall and King of Prussia Mall. Despite the perception that those malls far surpass Center City’s retail offerings, CCD’s new analysis found that Center City is the sole regional location for many desirable national brands and concepts – including Glossier, Joybird, Mejuri and M.M.LaFleur – and more than 70 apparel and accessory stores in the malls’ directories also have a flag downtown.

“There is a strong case to be made that Center City has never been more appealing as a retail destination, particularly in light of how many shoppers and workers are accessible to each shopping destination by all modes of transportation,” CCD Vice President of Economic Development Clint Randall said. “There is also strong evidence to support the fact that Center City residents leave downtown for certain kinds of shopping trips or to access certain retailers, meaning that the spending power of Greater Center City is not being captured in full by Greater Center City businesses. We think there’s tremendous opportunity to better explain the value proposition of Center City to both emerging brands that are in expansion mode as well as to some of the tenants we’d love to see return to the district."

As part of a broader retail attraction effort, Center City District is seeking to gather data on these dynamics and to hear from residents and shoppers about what they think is missing from the downtown retail ecosystem. In order to paint a clearer and data-driven picture of where people shop, and why, and how Center City could recapture some of that economic impact, the report includes a shopping survey, accessible on multiple platforms throughout the summer.  

To read and download the 15-page report, and to participate in the survey, visit Center City Retail Update, 2024.

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Center City District, a private-sector organization dedicated to making Center City Philadelphia clean, safe and attractive, is committed to maintaining Center City’s competitive edge as a regional employment center, a quality place to live, and a premier regional destination for dining, shopping and cultural attractions Through public space management, streetscape improvements, and economic development initiatives, CCD plays a pivotal role in shaping the urban experience for residents, businesses, and visitors.