Retail REITs and Holiday Campaigns: Link's Jelly Belly Collaboration as a Strategic Growth Catalyst

The holiday season has long been a critical period for retail real estate investment trusts (REITs), offering a unique opportunity to drive foot traffic, boost tenant sales, and stabilize revenue streams. In an era marked by macroeconomic headwinds and shifting consumer behavior, mall operators are increasingly turning to creative, experiential campaigns to differentiate their properties. Link REIT's recent collaboration with Jelly Belly-a classic American candy brand-provides a compelling case study of how holiday-driven retail activations can serve as a strategic growth catalyst, even amid broader market challenges.

The Strategic Imperative of Holiday-Driven Retail Activations

Holiday campaigns are no longer confined to December; they now span extended periods, with Q5 (December 26 through mid-January) emerging as a new growth engine for mall traffic. Data from Placer.ai indicates that indoor malls saw a 5.5% increase in foot traffic during Q5 2025 compared to January 2024, while open-air centers and outlet malls recorded gains of 2.9% and 2.7%, respectively. This trend underscores the importance of leveraging extended holiday promotions, such as "New Year, New You" events and semi-annual sales, to maintain consumer engagement. For mall REITs, these activations are not just seasonal gimmicks but essential tools to counteract the broader retail sector's struggles, including store closures and negative net absorption.

Link's Jelly Belly Collaboration: A Case Study in Engagement

Link's partnership with Jelly Belly during the 2025 holiday season exemplifies the power of themed retail activations. The "Jubilant Red Christmas" campaign, spanning 20 Link malls from 21 November 2025 to 11 January 2026, transformed properties into candy-themed destinations. Red-themed decorations, optical illusion art installations and interactive events like the "Candy Elf Jumping Contest" at Kai Tin Shopping Centre created a festive, Instagrammable experience. To further incentivize spending, Link collaborated with Visa to offer a 4.5% cash rebate and a lucky draw with nearly $100,000 in mall vouchers. These efforts turned malls into community hubs, blending visual appeal with financial rewards to drive both foot traffic and dwell time.

However, while the campaign succeeded in boosting short-term engagement, Link REIT's interim results for the six months ended 30 September 2025 revealed ongoing financial challenges. Revenue and net property income declined, with distribution per unit (DPU) and net asset value per unit also falling, attributed to macroeconomic and retail sector headwinds in Hong Kong and the Chinese Mainland. This highlights a critical nuance: while holiday activations can enhance traffic and tenant sales, their impact on REIT-level financial metrics is often constrained by broader economic pressures.

Mixed Impacts on REIT Performance Metrics

Historical case studies reveal a mixed picture of holiday campaigns' effects on REIT performance. In 2024, mall REITs like Macerich and Tanger reported measurable gains from Black Friday promotions and in-store events, with Macerich noting a 5.6% year-over-year foot traffic increase during the holiday period. These activations supported positive DPU performance by driving tenant sales and occupancy rates.

Yet, 2025 and 2026 present a more uncertain outlook. The National Retail Federation projected holiday retail sales growth of 2.9% to 3.4% for 2025, a slowdown driven by inflation, high interest rates, and consumer caution. Over 5,800 store closures in the first half of 2025 further complicate the landscape, with rising vacancy rates threatening rental income and DPU stability. For REITs, the challenge lies in balancing short-term activation-driven gains with long-term strategies to mitigate macroeconomic risks.

Navigating Uncertainty-Adaptability as a Key Factor

The success of holiday-driven campaigns hinges on adaptability. REITs that diversify tenant mixes and integrate community-driven events-such as tree lighting ceremonies or Santa photo opportunities-tend to outperform peers in volatile markets. Link's Jelly Belly collaboration, for instance, combined retail activations with financial incentives, creating a layered approach to engagement. Similarly, Tanger's focus on hybrid in-person and e-commerce strategies during the 2024 holiday season helped offset some of the sector's broader challenges.

For investors, the lesson is clear: while holiday campaigns can provide temporary traffic and revenue boosts, their long-term value depends on a REIT's ability to innovate and adapt. This includes leveraging data analytics to tailor promotions, fostering tenant collaboration for cross-promotional efforts, and maintaining cost discipline to offset macroeconomic pressures.

Conclusion

Link's Jelly Belly collaboration demonstrates the potential of holiday-driven retail activations to reinvigorate mall traffic and tenant engagement. However, its limited impact on Link REIT's financial metrics underscores the need for a holistic approach to REIT management. As the retail sector navigates ongoing instability, investors should prioritize REITs that combine creative activations with strategic tenant diversification and operational resilience. While the 2025 holiday season offers a glimpse of optimism, the path to sustainable growth for mall REITs will require both short-term ingenuity and long-term adaptability.