Des Moines shoppers expected to spend less this year
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It's holiday shopping season, but expect customer enthusiasm to wane this year following economic uncertainties, says Aaron Hyde, senior vice president of retail at JLL.
Why it matters: The average household is expected to spend 10% less this holiday season, according to a survey conducted by JLL, a real estate services company.
Driving the news: We asked retail experts what shopping trends they expect this winter and how development is going in the metro.
Consumer trends
💵 $600 gift budget: The average person nationally is expected to spend $580 to $590 on gifts, Hyde says.
- But households earning under $150K plan to trim spending on décor, dining out and experiences, contributing to an overall 10% drop in holiday spending, even as gift budgets hold steady, he says.
🛍️ Shortened shopping season: Between Thanksgiving and Christmas, there are only about 25 shopping days, so Hyde expects retailers to be more aggressive in their pricing.
Development
🛒 Retail comeback: There aren't many new retail spaces this year, but vacancies are also low, thanks to national chains filling older, larger spaces over the past two years.
- Burlington moved into the former JoAnn Fabrics in Clive, and Painted Tree Boutiques moved into the suburb's former Bed Bath and Beyond store.
- Haymarket Square by Merle Hay Mall is being redeveloped after it was purchased by a Kansas City real estate company in 2024.
- Toys R Us also returned to the metro, but this time it's inside Jordan Creek mall at the former Forever 21 site.
🛍️ Suburban shopping: Expect continued retail growth in Waukee, West Des Moines, Ankeny, Altoona, Norwalk and Grimes, Hyde says.
Future of Valley West
A retail eyesore is Valley West Mall, but while redevelopment isn't happening as quickly as expected, some movement will happen before the end of the year, West Des Moines economic development director Ryan Moffatt tells Axios.
- This year, the city approved rezoning the mall's site for mixed use, allowing residential, office, retail and entertainment in its 60 acres, the Business Record reports.
- Last month, the WDM City Council approved an urban renewal plan for the site, which will help the city move forward in a development agreement with an unidentified buyer.
The big picture: Other than the mall, the Valley West corridor is a strong shopping area with low vacancies, Hyde says.
What's next: With the Jordan Creek area mostly "tapped out," Hyde says the redevelopment of Valley West Mall is needed and could help draw more national retailers.