Phillips Edison & Company Reveals Top Shopping Center Trends of 2022

Phillips Edison & Company (NASDAQ: PECO), one of the nation’s largest owners and operators of grocery-anchored shopping centers, today released its findings on the top shopping center trends taking shape in 2022 as part of ICSC Las Vegas.

Common themes driving this year’s trends are proximity and convenience, as retailers across all categories seek to gain easier access to their end consumers. This has led some retailers to evolve or shift their real estate strategies to focus on suburban expansion, meeting rising consumer demand as these areas continue to see strong population growth across the country.

“While cities are recovering from the pandemic, we’ve seen suburbanization as a theme continue to play out, supported by strong macro tailwinds including long-term work from home trends and an aging millennial cohort seeking space to raise their growing families,” said Mike Conway, Vice President of National Accounts and Retail Partnerships at PECO. “As inflation and supply chain issues continue to create obstacles, retailers are recognizing now more than ever the importance of locating closer to their end consumers, and this is driving many of the trends we’re seeing today.”

Healthcare providers – which had traditionally been located in medical office buildings and other non-retail properties – are among the most active within PECO’s portfolio, reflecting their desire to be even more conveniently and efficiently accessible for patients. Further, providers such as One Medical, Pacific Dental, Humana and Carbon Health have also recognized the opportunity to leverage open-air retail storefronts to create an even more comforting, welcoming environment and experience. The “medtail” trend demonstrates the appeal of community shopping centers owing to strong visibility, high foot traffic and the ability to open quickly and efficiently.

As it relates to convenience, a rising tide of quick-service restaurants including Scooters, Dutch Bros., PF Changs, Salad & Go, Krispy Kreme, Popeyes and Jimmy Johns are introducing no dine-in and drive-thru-only locations, reflecting strong grab-and-go trends that arose during the pandemic. Built to integrate with mobile ordering and other technologies, these concepts show how innovative brands are rapidly adapting to shifting consumer preferences and diversifying their portfolios to provide consumers with more optionality. These digital-first locations also help to account for labor shortages, which continue to present significant challenges for restaurant operators.