The State of In-Store Retail 2023:

For the past year, economists and consumers alike have been bracing for a global recession. A pandemic and the resulting inflationary woes have affected all business sectors, with the retail industry positioned to take a significant hit. But despite the fears of an economic downturn – fears which appear to be waning by the day – brick-and-mortar retail is poised for solid growth. New store openings, enhanced shopping experiences, and increased traffic all signal in-store retail’s strength in 2023.

In-store Purchases Continue to Dominate 

The growth of e-commerce makes headlines, but the perception that online shopping dominates consumer behavior is grossly overinflated. While omnichannel shopping is now the norm, in-store purchases still make up 80% or more of all sales. More than half (54 percent) of U.S. consumers say they prefer stores to websites, according to a May 2022 report by the customer engagement platform Emarsys. And even if purchase is made online, a visit to a physical store is likely part of the journey; 76% of online shoppers visit a physical store before buying. Brands have responded by rapidly increasing their in-person presence, as evidenced by the surge of new store openings.

Retail Vacancies at Historic Lows

The biggest U.S. shopping mall owners say retailers are still forging ahead with their plans to open new stores in spite of recession fears. Simon Property Group, the country’s largest owner of shopping malls, reported an occupancy rate of 94.9%, up from 91.8% a year earlier.

Overall, retail vacancies in the U.S. reached a new low of 5.7% in Q4 2022, a level not seen since 2007. Currently, new store openings are outpacing closures at a rate of five to one, the largest net expansion in a decade.

DTC Evolves

Even direct-to-consumer (DTC) brands recognize the advantages of brick-and-mortar experiences, with more and more brands filling up these retail vacancies. Allbirds, Wayfair, Harry’s, Untuckit, and Everlane have all opened physical doors in recent years.

When it comes to location, DTC brands may have once pushed for Main Street retail space in dense, urban centers, but they’re increasingly moving to regional malls, says Amish Tolia, co-CEO and co-founder of Leap, a company that helps find and operate physical stores for digital-first companies. Simon Property Group is one developer working to capitalize on the DTC evolution, announcing a partnership with Leap in late 2022 to bring more DTC brands to its venues. 

Experience is Essential

Today, having an in-store presence requires more than just square footage. Experience is critical for drawing in shoppers and enticing them to return. 

Retailers need to provide something more than just a place to make a purchase – a global survey found that nearly 60% of consumers polled expect over half of retail space to be focused on experience rather than product. To remain competitive, retailers will need to shift their physical presence to surprise and delight rather than simply serve as end-of-funnel sales transactions. Whether it’s Sephora offering makeup application classes or Nike’s in-store sneaker customization studio, brands know that engaging with customers will require offerings beyond merchandising. 

Malls on the Rise

The good news around physical retail is certainly benefiting the state of malls. Placer.ai reports that in January 2023, indoor malls, open-air lifestyle centers and outlet malls saw YoY visit increases of 4.1%, 5.2% and 2.7% respectively. The wider trend of YoY uptick is significant because of economic headwinds. 

Lightbox has seen this rebound firsthand, with traffic to our network of malls hitting record highs. Full year 2022 traffic grew +21% over 2021, reflecting a recovery from the lingering pandemic. More impressively, 2022 traffic pulled ahead of pre-pandemic 2019 by +5%. The ongoing trends of store openings and enhanced experiences will only help draw even more audiences to our venues.

SOURCES:

• • PYMNTS, February 14, 2023: Surge of In-Store Shopping Triggers Rise in New Brick-and-Mortar Locations 

• • Retail Dive, November 22, 2023: Simon, Leap aim to bring more DTC brands to malls

• • Inc.: The Future of Retail Isn’t Direct-to-Consumer. How Brands Are Embracing Stores in 2023

• • The Future of Commerce, Retail trends 2023: Social commerce, personalization, omnichannel shine

• • Retail Dive, February 13, 2023: The beauty of building the in-store experience

• • Fashion Network: Experiential retail economy to reach tipping point in 2025

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WITH GOOD NEWS MOVEMENT PARTNERSHIP

New York, NY, January 31, 2023 – Lightbox, a leader in digital out-of-home video, and popular Instagram account Good News Movement have partnered to reach millions of consumers with uplifting video content in the real world. 

This collaboration showcases positive stories on Lightbox’s HD video screens in retail venues nationwide. In the form of 15 or 30 second videos with sound, Good News Movement (GNM) content will feature feel-good viral stories to deliver a boost of positivity to shopping audiences.

Started by journalist Michelle Figueroa, GNM is an online media platform dedicated toward populating news feeds with optimistic headlines and imagery. GNM has attracted over 4.6 million followers on Instagram, striking a chord with those seeking a remedy for the negativity common in mainstream media.

Lightbox is thrilled to broadcast GNM’s content within its creative rotation to brighten the mood of its retail venues with ultra brand-safe content and help advertisers promote their messaging to consumers in a hopeful mindset. GNM creative will be constantly refreshed on the network, highlighting its latest stories and maximizing engagement among audiences in high-traffic settings.

Lightbox’s integration with GNM is now live across Lightbox’s national network of shopping and lifestyle centers. Check out a video spot featured on the Lightbox network here, and give @goodnews_movement a follow for a daily dose of good news.

Press Contact

Zach Cohen

zach@lightboxooh.com

About Lightbox

Lightbox is a leading digital out-of-home video network that leverages technology and creativity to connect advertisers with 60 million consumers in the real world. The premium video network offers national scale with hyper-local execution via 4,800 can’t-miss screens in shopping environments and city street window fronts across the U.S. For more information: www.lightboxooh.com

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Senior Hires Include Twitter and Paramount Alumni

New York, NY, January 25, 2023 – Lightbox, a leading video out-of-home network, announces three new senior hires to help drive the company’s continued growth. The key roles consist of a mix of new and elevated positions to help Lightbox accelerate strategic initiatives in 2023 and beyond. 

Lightbox welcomes Twitter alum Sandy Earley as SVP, Strategic Sales; VisuWall founder and CEO Kobi Wu as SVP, Innovation and Strategic Technology; and Paramount alum Victoria (Tori) Shannon as VP, Human Resources. The three additions bring a wealth of experience in digital media and technology, having served leadership roles in their respective fields.

Sandy Earley, SVP Strategic Sales, joins Lightbox fresh off of a nine-year tenure at Twitter where she oversaw key Tech & Telco partnerships, growing it to be one of the company’s largest ad categories. Prior to joining Twitter, Ms. Earley was Director of East Coast Sales at Vevo, the world’s leading music video network. Years prior, she worked at media brands including FOX Sports, Microsoft and Sports Illustrated. At Lightbox, Ms. Earley will develop and manage a newly formed Strategic Sales team.

Kobi Wu, SVP Innovation & Strategic Technology, was most recently the founder and CEO of VisuWall Technologies, an AI platform that largely served window front media. It was here Ms. Wu delivered commercial real estate for Lightbox’s window front campaigns, such as those for Columbia Sportswear and Nordstrom Rack. Now at Lightbox, she will lead the company’s continued growth in video-based window front media. Ms. Wu is a former music industry executive with more than 18 years of marketing and advertising experience, including serving as SVP Strategy & Creative for Combs Enterprises, Sean Combs’ portfolio of brands.

Victoria (Tori) Shannon, VP Human Resources, joins Lightbox from ViacomCBS, now Paramount Media. At Paramount, Ms. Shannon worked exclusively with the Digital Sales organization to provide coaching and counseling in areas of change management, organizational design and talent management. Prior to Paramount, Ms. Shannon was the Human Resources Director at Wenner Media, home to Rolling Stone, Us Weekly and Men’s Journal.

“I couldn’t be more excited to have these three digital media pros join Lightbox,” says Eric Steinert, Lightbox’s Chief Revenue Officer. “Each has a stellar track record in their respective fields, so we’re incredibly fortunate to have this new roster of leadership. The addition of Sandy’s sales expertise, Kobi’s success in innovation, and Tori’s experience in building world-class teams brings Lightbox to a whole new level as a media sales organization.”

Press Contact:

Heawon Yoo, Lightbox 

won@lightboxooh.com

About Lightbox

Lightbox is a leading digital out-of-home video network that leverages technology and creativity to connect advertisers with 60 million consumers in the real world. The premium video network offers national scale with hyper-local execution via 4,800 can’t-miss screens in shopping environments and city street window fronts across the U.S. For more information: www.lightboxooh.com

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