Most people hit the beach over Labor Day weekend, but plenty opted for downtown stores and shopping malls instead.

After an already successful August, shopping malls across the country saw a significant spike in pedestrian traffic over the holiday weekend, with rates 56.2 percent higher than Labor Day weekend in the pre-pandemic days of 2019, according to a report from proptech firm MRI Software.

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U.S. downtowns also saw a year-over-year increase in foot traffic of 11.2 percent on Sept. 1, largely due to community Labor Day celebrations and an uptick in visitors, according to the report. Chicago’s downtown in particular saw large crowds over the holiday weekend, with a 108.2 percent increase compared to 2019.

“Our takeaway for the U.S. overall is that people love outdoor events, but good sales can drive them indoors,” Cederick Johnson, senior director at MRI, said in a statement. “That’s why downtowns and malls alike thrived over the holiday weekend.”

Overall in August, shopping mall traffic rose by 10.4 percent compared to the same period last year — with particularly strong gains made during the weekday and weekend periods — while downtown pedestrian traffic fell by 0.7 percent year-over-year, according to the report. 

Shopping malls’ early Labor Day sales may have contributed to the weekend’s positive numbers as more and more shoppers sought discounts amid higher retail prices. However, that uptick in customers may soon wane for both malls and downtowns as students go back to school and workers head back to the office.

As a result, retailers will likely begin to stock Halloween- and fall-themed products earlier to attract shoppers and encourage sales, according to MRI’s report. For example, Starbucks launched its popular “pumpkin spice” range of products much earlier than usual this year.

A reprieve may be in sight, though, when the weather gets colder and “budget-conscious” consumers head back indoors for holiday shopping and Black Friday deals, Johnson told Commercial Observer.

Meanwhile, thousands of downtown retail stores have shuttered this year as inflation rates rise, and many storeowners are anticipating the Federal Reserve’s cut in interest rates this month.

Isabelle Durso can be reached at idurso@commercialobserver.com.