American shopping malls, once bustling hubs of commerce and social activity, have experienced a significant transformation in recent years. The rise of e-commerce, the COVID-19 pandemic and changing consumer preferences led many to predict the downfall of these iconic retail centers. However, a surprising phenomenon is taking place across the country: the rebirth of American malls. Many malls are once again thriving, by adapting and evolving to find new relevance in the highly competitive and evolving retail environment.
While e-commerce has grown, estimates for 2023 have it accounting for just 18-20% of all retail sales. There are still many items and experiences that people prefer to buy and have in person. Traditional malls offer a very convenient one-stop shopping experience where customers can see and touch products before making a purchase, which is particularly important for items like clothing, shoes, jewelry, and electronics.
The Decline of American Malls
The decline of American malls gained momentum in the early 2000s, as online shopping started to gain increased traction. With the convenience of purchasing goods from the comfort of one's home and the endless variety of products available online, traditional brick-and-mortar stores faced stiff competition. This shift in consumer behavior, furthered during the COVID-19 pandemic, led to a wave of store closures and declining foot traffic, and a bleak outlook for malls. Other factors included over-saturation in many areas, aging infrastructure, outdated design and amenities, anchor store closures, and shifting consumer preferences toward open-air “lifestyle” centers.
Reinventing the Mall Experience
To counter the challenges, mall owners and developers - and their architects - have been actively reimagining the mall experience. VAN VLIET architecture | design is well versed with the approaches and solutions needed to innovatively reposition and reinvigorate outdated shopping malls – transforming them into vibrant, exciting mixed-use centers. Here are some key strategies that can be employed to breathe new life into these retail stalwarts:
Diversification of Tenant Mix: Traditional malls were once dominated by department stores and retailers of clothing, shoes, jewelry and home goods. Today, mall owners are diversifying their tenant mix by incorporating entertainment options like theaters, arcades, bowling alleys, and fitness centers. Some malls have also introduced coworking spaces, satellite learning hubs, and healthcare facilities. This remix draws in a broader demographic and keeps people coming back for more than just shopping.
Local and Independent Retailers: Some malls are actively seeking out local and independent retailers to bring unique and locally sourced products to their spaces. This can set them apart from other competing traditional, cookie-cutter mall offerings.
Increased Food and Dining: Malls have increased the scope of their food offerings, and also enhanced dining experiences with upscale restaurants, curated food halls featuring diverse cuisine, and outdoor dining areas. Regular food festivals and special culinary events can also attract visitors.
Experiential Shopping: Many successful malls have transformed into destinations that offer more than just the convenience of many products in the same location. They host events, art exhibitions, pop-up shops, and interactive displays to create memorable experiences for visitors. These experiences are difficult to replicate online.
Community Spaces and Engagement: Malls are increasingly being designed as community hubs, featuring outdoor green spaces, playgrounds, and gathering areas. They host local events, farmers' markets, and other activities that engage the community beyond just shopping. This fosters a sense of belonging and engagement and encourages social interaction.
Mixed-Use Development: Many malls are being redeveloped into mixed-use spaces that combine residential, office, hotel and retail components. This not only maximizes the use of the space but also ensures that there is a constant flow of people, both day and night, which can benefit all tenants. This 24/7 environment enhances a mall's vibrancy and sustainability. Unfortunately, outdated single-use zoning regulations and restrictive anchor store covenants often hinder their redevelopment.
Technology Integration: Many malls are embracing the digital world by integrating online and offline shopping experiences. They may offer curbside pickup, digital kiosks for ordering, and virtual shopping assistance. This tech includes features like augmented reality apps for navigation, touchless payment systems, personalized marketing and rewards campaigns, as well as the use of data analytics to understand customer behavior and preferences, etc.
Sustainability: Many malls are incorporating eco-friendly features like solar panels, green roofs, and energy-efficient lighting and controls. These efforts not only reduce environmental impact but also resonate with socially conscious consumers and promote eco-friendly practices among tenants.
Safety and Health: The COVID-19 pandemic has placed an even greater emphasis on cleanliness and safety in malls. Curbside-pickup, touchless payment options, enhanced cleaning protocols and social distancing measures have become standard.
Safety and Security: There is increased emphasis on ensuring a safe and secure environment. Once hidden away and deemphasized publicly, mall security measures have evolved to be more robust and observable with visible security personnel, well-lit parking areas, and surveillance systems.
Conclusion – While the decline of American malls seemed inevitable a decade ago, their resurgence showcases the adaptability of the retail industry. Mall owners and developers have embraced change, applying innovation and creativity to keep these iconic centers relevant. The rebirth of American malls as community hubs, entertainment destinations, and mixed-use developments is proof that the shopping mall, though transformed, is far from obsolete. As consumer preferences continue to evolve, so too will the American mall, ensuring it remains a vibrant part of the retail landscape for years to come.
Is Your Mall Ready for Repositioning? Give VVA a call to arrange a complimentary consultation.
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