Retail in Center City is thriving in 2024 according to its annual retail report

PHILADELPHIA - The data has spoken: Retail in and around the Center City District is thriving. But why?

From a pandemic-related "low business occupancy rate" in Center City, new businesses have opened and will continue to do so in the coming weeks and months. 

"Especially this past year, it feels like the city is coming back. We’re seeing a lot of foot traffic increase. We're seeing a lot more in the store locals and tourists," noted John Castellaneta, Manager of Philly Running Store.

There's more than just a "feeling" among retailers in Center City, there’s hard evidence of an upward trend and measurable growth and evolution in the Center City business landscape. 

"We surveyed every storefront from Pine Street to Vine Street and the two rivers. What it looks like today is within that geography we have an 83% occupancy rate in terms of storefronts," said Clint Randall, VP of Economic Development Center City District.

From an 89 percent high in 2019, to a low of 54 percent occupancy in 2020, the in-depth study showed people are interested in shopping and experiences—from downtown to Rittenhouse. 

"This is a place where previously digital brands now have a stake to put brick and mortar and it's a huge trend and continues to proliferate in this neighborhood and the concept of shopping on Instagram. Businesses are starting to plant a flag," added Randall.

Chain retailers clearly anchor some of the blocks, but the majority are small to medium-sized businesses. 

They feel blessed with their post-COVID success. 

"There were vacancies on Walnut; we took the chance. We stepped into a bigger space and, with more foot traffic and everything, it worked out wonderfully," shared Castellaneta. 

"Especially after COVID, the industry everyone is saying that they feel it, but we’re trying to keep ahead of innovation and giving the guests what they’re looking for," Michelle Lavigne of Bar Bombon and Hip City Restaurants remarked.

The positive retail environment is also connected to increased residential construction. 

"When and where they build…people come…" said Randall. "All the new apartment buildings we're seeing growing up fuel additional demand for new food and beverage, more services, supermarkets, and daycare."

The Center City District and the Central Philadelphia Development Corporation are hoping the next few shopping weeks will be a bellwether for future retail growth. 

Coming soon, 32 new restaurants, six new retailers, and four service businesses are expected to open their doors.