Center City’s shoppers and diners are back — almost to pre-pandemic levels
Foot traffic is getting a boost from the return of out-of-town shoppers, tourists and convention attendees, college students, and office workers.
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Shoppers and diners have returned to Center City, in numbers that are nearly comparable to levels seen before the pandemic.
Center City’s commercial core is slowly but steadily recovering from the impact of COVID-19, with new businesses opening and existing retailers moving to new or larger locations, according to a report released this week by the Center City District/Central Philadelphia Development Corp.
Most important, consumers are opening their wallets and spending once they get downtown.
In the first quarter of 2022, retail sales within Center City’s core boundaries — Vine Street to South Street, Delaware River to the Schuylkill — reached 94% of 2019 levels, and restaurant sales reached 74% of 2019 levels.
According to Center City District president Paul Levy, “the challenge is businesses getting workers back into the office,” noting that only 52% of Center City office workers have returned.
The trend toward permanent remote work is contributing to Philadelphia’s overall tepid economic rebound from the COVID-19 pandemic and a decline in the total workforce, according to a recent report from Pew Charitable Trusts, the latest in a series on Philadelphia’s Fiscal Future, published in partnership with the William Penn Foundation.
However, Center City’s uptick in foot traffic has been helped by the return of out-of-town shoppers, tourists and convention attendees, more than 100,000 college students, and just more than half of Center City’s 146,000 office workers. Center City saw an average of 346,833 pedestrians daily in mid-June, or 84% of pre-pandemic levels.. That is Center City’s best foot traffic number since 2019, Levy said.
“The diverse mix of downtown has sustained the steady presence of pedestrians on sidewalks, day and night,” said Levy. The Center City District is funded by local businesses in Philadelphia’s downtown.
Beyond Center City
Outside the limits of Center City, however, retailers are still struggling to recover.
Many can’t hire enough workers to keep stores open for the full day. Other business owners close early due to fears of robbery or other crimes.
Brick-and-mortar stores in Philly’s neighborhoods are still closing due to staffing and crime, said Regina Hairston, president of the African American Chamber of Commerce for Pennsylvania, New Jersey and Delaware.
“Anecdotally, our members are still in recovery,” Hairston said. “Recently, I met people at three different places, and none of them were open. Everything is closing at 6 p.m.”
Pam Thornton, owner of Pound Cake Heaven, a bakery and cake-decorating business, has shrunk her operation from three locations to two, one in Kensington and in Yeadon. Her now-shuttered West Philly location on 53rd Street “needs a renovation, but we don’t have the funds right now. A lot of times it feels like we’re getting back close to normal. But it gets rough when employees leave, because they get more money elsewhere,” said Thornton, who has been in business 10 years.
More discount stores
In Philadelphia, dollar and discount stores, including Dollar General and Five Below, are seeing major foot traffic gains, with weekly visits up all year relative to the equivalent week in 2019, according to Placer.ai, which measures cellphone data tracking where consumers shop.
Big-box stores are also finding renewed interest from consumers. After a 50% drop in new big-box openings in 2020, the big-box market rebounded with 23 new store openings in 2021, a 91% increase from the prior year, according to CBRE’s latest report on the Philadelphia market.
In the second half of 2021, the grocery sector accounted for half of all big-box openings in the Philadelphia region, from tenants such as Wegmans and Giant, which is opening another location at Broad and Spring Garden Streets.
Additionally, Turn7, a new Philadelphia-based discount retailer, opened two locations in 2021 in former mall anchor spaces, and announced plans to open at least three more.
Outdoor dining
Outdoor restaurant seating remains one of the pandemic’s enduring positives, Levy said.
“That’s one nice surprise. Sitting outdoors remains so popular,” he said. In 2019, there were 3,501 outdoor dining seats within the district; today there are 5,053 outdoor seats.
A financial lifesaver for many restaurant owners who couldn’t serve diners indoors during the peak of COVID-19, outdoor eateries have struggled with the city’s new regulations and fees as the pandemic eased. In recent months, City Council has said it will relax regulations for “streeteries” with full Council support.