At mid-year 2025, retailers are reporting healthy sales and in-store traffic and – despite what some consider elevated economic volatility – expect that momentum to continue in the coming months.
Levin Management Corp.’s 2025 Mid-Year Retail Sentiment Survey findings, released July 16, also show the industry responding to disruptive technologies and evolving digital marketing tools to improve business processes and customer engagement.
Three quarters (75.2%) of survey participants say their year-to-date sales meet or exceed mid-year 2024 levels. Almost the same percentage (74.8%) report same-or-higher traffic, a mid-year for the survey, and 82.4% expect sales to increase or maintain pace through the end of the year.
“We asked store managers within our leasing and management portfolio whether economic conditions, trade policy or consumer sentiment during the past six months changed their outlook for 2025,” said Matthew K. Harding, chief executive officer. “With under 30% answering in the affirmative, we see a clear indication that retailer performance expectations are less tied to shifting conditions than in the past few years. The bottom line is people are shopping and spending.”
LMC’s mid-year survey findings also point to brick-and-mortar retailers embracing technology innovations, with 44% of respondents saying their company is making new tech investments this year. Smaller but increasing contingents are actively engaging artificial intelligence to benefit their businesses (20.2% vs. 11.8% last year) or exploring the use of AI tools (35.4% vs. 20.6% 2024).
“AI is revolutionizing retail, and our tenants are using chatbots and other tools to improve customer communication, personalize product suggestions, and schedule appointments and deliveries,” said Melissa Sievwright, LMC’s vice president of marketing. “On the business end, AI is being leveraged for inventory control and demand forecasting, marketing and more.”
Technology is at the heart of providing a seamless and custom-catered shopping experience in a true omnichannel environment, Sievwright noted. “Retail tenants are working hard to meet evolving consumer preferences. Providing fulfillment flexibility and a convenience-focused in-store experience are key,” she said.
To that end, 38.1% of LMC mid-year survey respondents say they are looking at new ways to better integrate customers’ in-location and online experiences. Buy online, pick up in-store is the most popular in-place fulfillment option, offered by 54% of those polled, followed by local delivery and ship-from-store (both 32.5%). The most-offered in-store convenience technology ties to digital coupons, discounts and loyalty points (offered by 76.4%), followed by electronic receipts and free Wi-Fi (both 58.2%).
For retailers, amplifying brand and winning business requires an understanding of how – and where – to best reach customers and potential customers. Today’s marketing options span countless digital channels, and LMC’s mid-year survey findings illustrate the wide variety of tools tenants are employing.
These include social media (used by 65.3% of respondents), email marketing (62.7%) and loyalty/rewards program platforms (47.5%).
“Platforms like Facebook, Instagram and TikTok are quickly evolving into cost-effective advertising and direct sales channels,” Sievwright said. “Those three platforms for several years have ranked as the most popular social media options in our mid-year survey.”
For the first time, the mid-year survey asked store managers whether they are partnering with influencers in their digital marketing efforts; about one-quarter of participants said they are using influencers to help promote their brand or products.
North Plainfield-based Levin Management has conducted its retail sentiment surveys three times annually since 2011, polling the company’s 125-property, more than 16 million-square-foot leasing and management portfolio.
