Eighty-five Percent of Americans Plan to Increase or Maintain Holiday Spending[1] in 2013, New Survey Says
68% Say In-Store Promotions Drive Them to Brick-and-Mortar Retailers
PHILADELPHIA, Nov. 25, 2013 /PRNewswire/ -- Pennsylvania Real Estate Investment Trust (PREIT/NYSE: PEI), a leading real estate investment trust specializing in the ownership and management of differentiated retail shopping malls, today announced the results of a Harris Interactive study conducted on its behalf in November 2013 among more than 2,000 U.S. adults examining holiday spending plans. This survey is the first in a series of periodic research reports examining the behavior and propensity of American consumers to shop at malls.
Survey results confirm the importance of brick-and-mortar retail, as an overwhelming 88% of adults said they like to be able to see and touch a product before making their purchase. Fifty-four percent (54%) of American adults ages 18-34 expect to continue to enjoy the mall experience during the holidays. Of the adult population, 68% enjoy the mall because it gives them access to multiple stores at once.
"Survey findings confirm malls are a central, exciting destination for Americans during the holiday season," said Joe Coradino, CEO of PREIT. "We are dedicated to creating exciting mall environments and the survey highlights that such unique and engaging retail experiences are a driving force for our consumers."
Americans Plan to Increase Holiday Spending
Eight-five percent (85%) of Americans plan to increase or maintain their overall holiday gift spending on apparel, electronics, home goods and gift cards this year. Of those who plan to spend more, 15% plan to increase spending on electronics, 14% plan to purchase more gift cards, 13% will spend more on apparel and 10% will spend more on home goods.
In-Store Promotions & Experiences are Increasingly Important
More than 175 million[2] US adults (75%) plan to pay more attention to retailer coupons and discounts this year than last and 68% of adults indicated that exclusive in-store promotions motivate them to shop more at physical store locations.
Of those who plan to spend less on apparel/electronics/home goods/gift cards this holiday season Forty-nine percent (49%) say they have less income this year than last. Forty-three percent (43%) want to go into less debt. Thirty-eight percent (38%) are concerned about higher retail prices and 12% are worried about job security. Another 19% fear government uncertainty will harm the economy overall and 10% are worried the government might shut down again.
Forty-four percent (44%) of men ages 18-34 think mall owners should offer more exciting retail stores during the holidays, compared with 23% of the overall adult population. Survey findings indicate that ensuring an exciting retail environment is an increasingly important tool for attracting shoppers.
Survey Methodology
This survey was conducted online within the United States by Harris Interactive on behalf of PREIT from November 8-12, 2013 among 2,044 adults ages 18 and older. This online survey is not based on a probability sample and therefore no estimate of theoretical sampling error can be calculated. For complete survey methodology, including weighting variables, please contact Julia Bonner at [email protected].
About PREIT
PREIT is a real estate investment trust specializing in the ownership and management of differentiated retail shopping malls designed to fit the dynamic communities they serve. Founded in 1960 as Pennsylvania Real Estate Investment Trust, the Company now operates properties in 12 states in the eastern half of the United States with concentration in the Mid-Atlantic region and Greater Philadelphia. The Company's current portfolio is comprised of 35 shopping malls, five community and power centers, and three development sites totaling 43 properties and 30.3 million square feet of space. PREIT is headquartered in Philadelphia, Pennsylvania, and is publicly traded on the NYSE under the symbol PEI. For more information, please visit www.preit.com.
Forward Looking Statements
This press release contains certain "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements relate to expectations, beliefs, projections, future plans, strategies, anticipated events, trends and other matters that are not historical facts. These forward-looking statements reflect our current views about future events, achievements or results and are subject to risks, uncertainties and changes in circumstances that might cause future events, achievements or results to differ materially from those expressed or implied by the forward-looking statements. In particular, our business might be materially and adversely affected by uncertainties affecting real estate businesses generally as well as the following, among other factors: our substantial debt and stated value of preferred shares and our high leverage ratio; constraining leverage, interest and tangible net worth covenants under our 2013 Revolving Facility; potential losses on impairment of certain long-lived assets, such as real estate, or of intangible assets, such as goodwill; potential losses on impairment of assets that we might be required to record in connection with any dispositions of assets; recent changes to our corporate management team and any resulting modifications to our business strategies; our ability to refinance our existing indebtedness when it matures, on favorable terms or at all; our ability to raise capital, including through the issuance of equity or equity-related securities if market conditions are favorable, through joint ventures or other partnerships, through sales of properties or interests in properties, or through other actions; our short- and long-term liquidity position; current economic conditions and their effect on employment and consumer confidence and spending and the corresponding effects on tenant business performance, prospects, solvency and leasing decisions and on our cash flows, and the value and potential impairment of our properties; general economic, financial and political conditions, including credit and capital market conditions, changes in interest rates or unemployment; changes in the retail industry, including consolidation and store closings, particularly among anchor tenants; the effects of online shopping and other uses of technology on our retail tenants; our ability to maintain and increase property occupancy, sales and rental rates, in light of the relatively high number of leases that have expired or are expiring in the next two years; increases in operating costs that cannot be passed on to tenants; risks relating to development and redevelopment activities; concentration of our properties in the Mid-Atlantic region; changes in local market conditions, such as the supply of or demand for retail space, or other competitive factors; potential dilution from any capital raising transactions; possible environmental liabilities; our ability to obtain insurance at a reasonable cost; and existence of complex regulations, including those relating to our status as a REIT, and the adverse consequences if we were to fail to qualify as a REIT. The risks included here are non-exhaustive, and there are additional factors that might cause future events, achievements or results to differ materially from those expressed or implied by our forward-looking statements include those discussed in the section of our Annual Report on Form 10-K and in our Quarterly Report on Form 10-Q for the three months ended March 31, 2013 in the section entitled "Item 1A. Risk Factors." We do not intend to update or revise any forward-looking statements to reflect new information, future events or otherwise.
[1] On apparel/electronics/home goods/gift cards
[2] Calculation based on U.S. Census Bureau's 2010 Census, which estimates there are 234.6 million adults ages 18+ residing in the United States: 234.6M x 75% who will be paying attention to retailer coupons and promotions more this holiday season compared to last year.
CONTACTS:
Heather Crowell
PREIT
VP, Corporate Communications and Investor Relations
(215) 454-1241
Julia Bonner
Adam Friedman Associates
[email protected]
(917) 675-6248
SOURCE Pennsylvania Real Estate Investment Trust
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