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Service-focused venues now dominate downtown storefronts over traditional retail

In U.S. city centers, spaces that provide services such as gyms and salons have surpassed those selling physical products for the first time.

Recent data shows a shift in American downtown districts, where businesses offering experiences are now occupying more square footage than traditional merchandise stores. The change reflects a growing consumer preference for activities like fitness and personal care over buying goods. This marks the first year that service-oriented retailers have outpaced product-based shops in terms of retail space.

Why it matters

The rise of service-oriented retailers signals a lasting change in how city shoppers allocate their money.

In this story

downtown retailservice businessesexperience economygymssalonsconsumer spendingretail space