The shopping mall apocalypse in America is providing for a remarkable realignment. These new malls are growing into dynamic community gathering hubs, swapping out the old anchor store model for a bevy of distinctive local and national niche retailers. Industry leaders emphasize that this transition is essential for revitalizing mall traffic, especially following the closures of long-standing anchors such as Macy’s and JCPenney over the past decade. Mall operators have been repurposing big box retail spaces into smaller, niche specialty locations. This approach drives positive cross-shopping effects between retailers and dramatically enhances visitor experiences.
Stephen Lebovitz, CEO of General Growth Properties, points out that the key to this transformation lies in subdividing formerly sprawling anchor stores into niche players. At least one necessary change, he laments, is to bring in more diverse customer bases. We’ve gone from the bottoming out, we’ve had this rebound and we’ve built all this great positive momentum. These lagging projects to backfill anchors,” he explained, “they take time. He noted the long-term, slow recovery path since the anchor store closures in 2017 and 2018.
This strategy has already yielded promising results. As Brookfield Properties just did with the former Sears space at Tyson’s Galleria. They continued the transformation, helping make it a lively entertainment center with a new bowling complex and a newly added yoga studio. In yet another creative step, the 162K sf building was sold to Crossroads. This open and welcoming local church has changed 90,000 square feet of ecclesial space into a creative, flourishing community center and worship place.
The church’s decision to keep its complex open seven days a week aligns with a growing trend among malls to integrate experiential offerings. “People are seeing the shopping center as a community space,” stated Kirsten Lee, underscoring the importance of creating environments where visitors can engage in diverse activities beyond shopping.
Joining churches and entertainment venues, bookstores are returning to malls. Jason Stryker, speaking for Barnes & Noble, was apparently quite excited about their possible future locations in such mall contexts. “Malls are absolutely places we are interested in being a part of,” he stated, adding that they aim to be located near stores that encourage cross-shopping. “We like to be around stores where people will cross-shop,” Stryker explained, noting that their unique offerings do not directly compete with other retailers in the mall.
Even with these positive developments, original tenants still face an uphill battle. We all know traditional mall retailers are going through a huge wave of bankruptcies. Claire’s recently filed for bankruptcy protection, a casualty of the perfect storm of growing debt and fierce competition. Kirsten Lee cautioned that many mall tenants continue to experience acute difficulties. She pointed to the massive efforts still needed to catch up with a historic shift in consumer patterns.
Dr. Vassilia Binensztok, cultural anthropologist, emotions and the mall Teaser image via Pixabay. It’s hard to overstate the powerful emotional connection people have with malls. “Most Gen X and millennials spent their adolescent years making memories in malls—going to the food court with their friends or just generally hanging out chatting,” she noted. This sense of nostalgia is key to understanding why so many still visit these spaces today.
Interestingly, data from Placer.ai indicates that traditional enclosed malls have seen an uptick in traffic recently, particularly ahead of the 2024 holiday season. This comeback indicates that people are slowly but surely making their way back to in-person retail shops, looking for shopping experiences as well as social interactions.
Then, there’s Gen Z wooing their focus on malls Kirsten Lee, another key force propelling this trend. “Gen Z loves the mall; they love the experience of the mall and being in person with each other at malls,” she remarked. This demographic shift bodes a bright future as younger generations remain committed to the mall experience.
As malls transform to meet the needs and desires of today’s shoppers, they’re no longer just shopping centers — they’ve turned into diverse community hubs. Thoughtful blending of businesses, entertainment venues, and social spaces are designed to attract and hold visitors’ attention in an impactful, sustainable way.