2025 Retail Trends Report: Mid-Year Insights July 30, 2025 Key Takeaways · 18 new stores opened in the first half of 2025, adding 41,000+ square feet of retail space · 99% occupancy rate across the portfolio, an all-time high · 38 million visitors so far this year, with a 1.3% increase in foot traffic · Strong leasing activity in health, wellness, and beauty categories · Continued demand for grocery-anchored, open-air lifestyle centers · Emphasis on convenience-driven design like short-term parking for pickups · Four major new developments under construction in California · Growth in vertical mixed-use (VMU) leasing opportunities for local businesses · Retail performance on track to exceed 2023 record levels Retail in 2025 is proving to be more resilient and more exciting than anyone expected. At the mid-year point, Lewis Retail Centers is seeing strong growth, near-record leasing activity, and shifts in tenant demand that reveal where retail is heading next. In this report, we break down key insights shared by Jeff Landis, Vice President of Retail Development and Leasing at Lewis Retail Centers, covering everything from store openings and foot traffic to development strategy and future outlook. A Record‑Setting First Half of 2025 18 New Stores and 99% Occupancy The first half of 2025 has been a strong one for Lewis Retail Centers. So far this year, 18 new stores have opened, adding over 41,000 square feet of retail space across the portfolio. This growth reflects the ongoing demand for well‑located, high‑quality retail space. Perhaps even more impressive is the current portfolio‑wide occupancy rate, which is just under 99 percent. This is one of the highest in company history. That kind of stability shows that retailers are confident in the performance of neighborhood shopping centers, especially those anchored by essential services like grocery stores. Foot Traffic Reaches 38 Million Visitors Despite ongoing economic headwinds, Lewis Retail Centers has seen a 1.3 percent increase in visitor traffic year over year, totaling more than 38 million shoppers so far in 2025. This continued rise in retail foot traffic highlights a major trend in consumer behavior. People are still choosing to shop in person. Whether it’s for groceries, health and wellness services, or local dining, customers are showing up and in big numbers. In a world where online shopping is easier than ever, this tells us that convenience, experience, and location still matter deeply to today’s consumers. For industry context, see a report on changing shopper behavior from ICSC (source, external, opens in new tab). Strong Retail Demand Across Key Segments Grocery‑Anchored Centers Still Leading Even with changes in the economy and consumer habits, grocery‑anchored shopping centers continue to perform well. These open‑air neighborhood centers, like the ones developed by Lewis Retail Centers, remain one of the most in‑demand retail property types. Coming out of the pandemic, retailers and investors alike place greater value on essential, convenience‑focused retail. Lewis is seeing strong leasing activity and quick turnarounds on available spaces. This is a clear sign that businesses want to be located where everyday shopping happens. These open‑air retail centers offer flexibility and visibility. That makes them especially appealing to both national chains and local tenants. They are also built for easy access, which is exactly what modern shoppers want. Health, Wellness, and Beauty on the Rise One of the most noticeable trends in 2025 retail leasing is the growing demand from health, wellness, and beauty brands. Lewis Retail Centers is seeing a steady stream of proposals from businesses like IV therapy clinics, boutique healthcare providers, and salon suite operators. Supporting this trend, a McKinsey report on the wellness economy shows continued strong consumer investment in health and wellness services (source, external, opens in new tab). Over the past 24 months, Lewis has signed several salon suite leases and continues to attract businesses in the health and beauty space. This is a sign that consumers still crave real‑world services and that smart shopping centers are making space for them. Designing for Convenience and Grab‑and‑Go Short‑Term Parking and Online Ordering Today’s consumers expect speed and flexibility. Shopping centers are evolving to match. At Lewis Retail Centers, developments are being designed with grab‑and‑go convenience in mind. That means more short‑term parking spots dedicated to quick pickups, whether it’s for food, retail, or online orders. Whether customers use DoorDash, Uber Eats, or order directly from a store’s app, they want to pop in, grab their items, and get back on the road fast. Lewis has embraced this behavior by adding 10‑, 15‑, and 20‑minute parking zones to support retail pickup and curbside strategies, as outlined in their recent post on designing for retail convenience. The Power of Outdoor Lifestyle Centers Lewis Retail Centers specializes in open‑air, grocery‑anchored lifestyle centers built for convenience and accessibility, two things today’s shoppers value most. These centers let shoppers drive up, find parking, and visit multiple retailers in a single stop. They are not just places to shop; they mirror how people actually live, work, and move through their day. Key Retail Developments Underway 4 Major Projects in Progress Lewis Retail Centers is not just maintaining momentum. They are expanding it. Four major retail developments are currently underway, each designed to meet the specific needs of growing communities in California. Here’s a quick look at what’s in progress: Adelanto Place – A new retail destination tailored to meet local demand Vallejo Costco Center – Anchored by one of the nation’s most trusted retailers Apple Valley Commons Expansion – Adding 23,000 square feet to an already popular center Arborita Marketplace in Fontana – Positioned in a high-growth area with strong leasing activity You can read more about Lewis’s retail development strategy in their feature on meeting the Inland Empire’s growing retail needs. Mixed‑Use Retail and Community‑Centered Growth Supporting Local Businesses Through VMU To support a wider mix of tenants, Lewis is adding Vertical Mixed‑Use (VMU) spaces to its newest projects. These smaller retail spaces, ranging from 600 to 1,200 square feet, are ideal for local businesses that may not need a full‑size storefront. Lewis detailed this flexible model in their coverage of mixed‑use leasing opportunities on the blog (Mixed‑Use Leasing Opportunities). Building for Community Needs At the core of Lewis’s development strategy is a simple question: What does this community need? In some cases, it’s a grocery store; in others, a Starbucks, a healthcare clinic, or just a gathering place. By focusing on local gaps in services, Lewis ensures its retail centers deliver real value. This approach not only strengthens tenant mix, it builds loyalty and long‑term success for the entire retail environment. The State of Retail in 2025 Stronger Than Ever For years, people questioned the future of brick‑and‑mortar retail, especially with the rise of online shopping. But in 2025, the outlook has never been stronger. Coming out of the pandemic, there’s been a clear shift. Shoppers want more than just products. They want experiences. They want to go out, connect with others, and enjoy in‑person services. Whether visiting a grocery store, browsing soft goods, or working out at a local gym, retail spaces are once again part of everyday life. A Financial Times overview of U.S. open‑air shopping centers reports vacancy rates at historic lows, near 6.2 percent, confirming this as a national trend in retail resilience (ft.com). What’s Ahead for the Rest of the Year With multiple projects under construction and leasing activity high, Lewis is on track to surpass its record‑setting year in 2023. Both lease count and income projections are trending upward, showing no signs of slowing down. If the second half of the year continues the way the first did, 2025 may go down as one of the strongest retail years in two decades. Final Thoughts From Jeff Landis What Drives Success at Lewis When asked what keeps things moving at Lewis Retail Centers, Jeff Landis points to two key things: the people and the purpose. He credits their retail development success to a talented team, people who are smart, driven, and passionate about building great places. Just as important is the mission behind the work: transforming empty land into vibrant shopping centers where the community shops, tenants thrive, and local economies grow. At the heart of it all is a commitment to serving the community, not just with buildings, but with thoughtful design, relevance to local needs, and long‑term vision.
