Vanity Economy Takes Downtowns
More than one out of every four retail leases signed in the United States this year has gone to a cosmetics, beauty service, or fitness company, according to CoStar.
The shift reshapes city streets and suburban shopping malls as storefronts pivot from selling physical goods like shoes and televisions to offering personal care and appearance services. Brick-and-mortar locations increasingly focus on services that cannot be easily duplicated online, driven by consumer spending on self-care and digital presentation for platforms like Instagram, Hinge, and TikTok.
Surging Salon Expansions
Nail salons, med spas, and boutique fitness studios are expanding rapidly across commercial corridors. Jiang noted that when the business started, manicures were viewed as a pampering moment involving basic polish and cleanup, whereas today they form part of routine physical and mental well-being.
Cities have loosened zoning restrictions, and many traditional retailers have ended strict lease provisions that prevented fitness tenants from locating nearby. Brixmor Property Group now features boutique fitness tenants in 40% of its shopping centers, up from 29% in 2021, according to David Gerstenhaber, head of leasing at Brixmor.
Younger demographics drive demand for fitness and cosmetics
Younger demographics are driving much of the demand. Gym and fitness studio memberships for individuals under 35 are growing faster than among older age groups, with younger consumers allocating more funds to monthly dues, the Health & Fitness Association reported. Gen Z spending at cosmetics stores grew nearly twice as fast as the overall average this year.
Cultural factors also influence retail. Natalia Mehlman Petrzela, a historian of American politics and culture at The New School, said that aesthetic creep has intensified, bringing straight men into the beauty-industrial complex in ways distinct from prior decades. Meanwhile, younger consumers often prioritize smaller acts of self-improvement when traditional milestones like homeownership appear out of reach.
Why retail leasing trends shift toward vanity businesses
Why are retail leasing trends shifting toward vanity businesses?
Brick-and-mortar stores were once designed to sell physical goods, but online retail cannot replicate services such as manicures, Botox, and fitness training, prompting a pivot toward service-oriented businesses.
How have shopping center lease agreements changed?
Many traditional retailers have ended strict lease provisions that previously prevented gyms and wellness tenants from operating in prime commercial corridors, allowing centers like Brixmor Property Group to integrate fitness brands into 40% of their properties.
What demographic drives the growth in fitness and cosmetics spending?
Consumers under 35 are expanding their gym memberships faster than older generations and spending more on monthly dues, while Gen Z spending at cosmetics stores was nearly twice as strong as the overall average this year.
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