Are malls coming to an end?

In 2020, Coresight Research projected that 25% of the country's approximately 1,000 malls would close shop in the following 3-5 years. In April, analysts at UBS projected that 40,000-50,000 American retail stores would shut down by 2027.

How long will malls last?

Currently, only 1,000 malls are left in the United States. A report from Credit Suisse last year predicted that 25% of the remaining malls will be bankrupt by the end of 2022. A shuttered mall can be an eyesore for the community for many years because it takes so much money to redevelop the space.

Why are so many malls closing?

Most malls took a hit during last year's pandemic shutdowns and have struggled to attract customers back to the great indoors. A slew of bankruptcies, including J.C. Penney and Brooks Brothers, fueled closures. And healthy retailers decided to shutter their least-profitable stores, causing another exodus.

Will malls make a comeback?

Malls are seeing an increase in traffic in 2022, with U.S. malls and outlet centers reporting an occupancy rate of 93.9% as of June 2022, up from 91.8% a year before. So far this year, 4,432 stores have announced openings compared to 1,954 closures, resulting in a net of 2,478 openings.

How many malls are left in the US?

There are currently about 1,000 malls in the US, and it is estimated that one in four will close in the next few years as vacancy rates are increasing due to the pandemic, a slowed economy and increased online shopping.

The Rise and Fall of American Malls

When was the last mall built in the US?

The Mall at Turtle Creek in Jonesboro, Ark., on March 29, 2006, was considered to be the last truly enclosed mall constructed, according to the ICSC, and was the only enclosed mall to open in the country that year.

What state has the least malls?

At the bottom of the list, with fewer than 200 centers each, were Alaska (133), Montana (129), South Dakota (113), Vermont (105), North Dakota (100), District of Columbia (72), and Wyoming (71).

When did malls start dying?

The massive change led Newsweek to declare the indoor mall format obsolete in 2008. The year 2007 marked the first time since the 1950s that no new malls were built in the United States.

How malls can survive into the future?

The Bottom Line:

By adding restaurants and services as well as creating experiences that cannot be mimicked online, malls will ultimately be turned into places where people go to shop, eat, and be entertained – which is a main reason people shop at malls rather than ordering online.

Will retail stores still exist in the future?

Physical retail stores will still be relevant

While technology will feature heavily in the future of retail, it will not replace the physical store. Customers may not purchase in-store, but real-world interactions with brands will still be highly valued.

Why are malls going extinct?

It's also so much easier to shop online with free shipping and returns,” Byers said. With many combined factors including urbanization, the rise in online shopping, the great recession, and more recently the pandemic, it is likely for the American shopping mall to go extinct in the coming years.

Are malls struggling?

Shopping malls were losing business even before the pandemic and in the past couple of years, many department stores have shut down. Now those empty spaces are getting a facelift try to bring in new business. Malls struggling to attract shoppers as online shopping continues to grow - are ready to experiment.

Why are retail stores dying?

Shift to e-commerce

The main factor cited in the closing of retail stores in the retail apocalypse is the shift in consumer habits towards online shopping. Holiday sales for e-commerce increased by an estimated 11% to 20% from 2015 to 2016.

What will malls become?

About 20% of 1,000 US malls will close or go through a “major repurposing,” but “the American mall is not, in fact, dead,” according to a new analysis from Moody's Analytics. Moody's predicts that one-fifth of American malls will either be renovated, repurposed, or razed to make way for new properties.

What is the biggest mall in America?

The largest mall in the United States, the Mall of America is located in Bloomington, Minnesota only 15 minutes from downtown Minneapolis and St. Paul. Open since 1992, the Mall of America is one of the most visited attractions in the world with 40 million visitors per year.

When did malls become a thing?

The first shopping mall was technically an outdoor shopping plaza that opened in 1922 in Kansas City. However, the first indoor shopping mall that mirrored how we think of malls today was opened in 1956 in Edina, Minnesota. Malls were often anchored by a large department store with a cluster of other stores around it.

Do shopping malls have a future?

The shopping mall isn't dead-it's just evolving. More and more people choose to shop online, but this doesn't mean that malls will disappear. They will need to adapt to stay afloat. This could mean smaller stores, more restaurants, and even on-site entertainment.

What is the future of live shopping?

“We believe that live shopping will be an integral part of e-commerce within a few years,” Abrahamsson says. “The end consumer will shop online just the way they already interact online, and video commerce will continue bridging the gap between the physical and the online retail experiences.

What is the future of shopping?

Digital technology – such as smart mirrors, digital mannequins, QR codes, interactive apps, and more – will become a staple of physical retail in the future of shopping, allowing brands and retailers to provide guided digital journeys through brick-and-mortar stores.

Are malls in the US dying?

In 2020, Coresight Research projected that 25% of the country's approximately 1,000 malls would close shop in the following 3-5 years. In April, analysts at UBS projected that 40,000-50,000 American retail stores would shut down by 2027.

Are malls in America dying?

It's no secret that online shopping is becoming increasingly popular, and this is definitely one of the key reasons why shopping malls are dying. More and more people are opting to do their shopping from the comfort of their own homes, and with such a wide range of products available online, it's not hard to see why.

Are malls a dying breed?

Over the next two decades, hundreds more of these climate-controlled shopping centers popped up around the country, offering visitors a place to browse, buy, eat or hang out in comfort for hours on end. Fast forward to the present, and you'll find that the traditional, enclosed shopping mall is a rapidly dying breed.

What is the oldest mall in the US?

Southdale Shopping Center, located in Edina, Minnesota, was the first totally enclosed shopping center in the nation.

What is the nicest mall?

Which US city is ranked No 1 for shopping?

Houston, Texas

The city's number 1 shopping destination is, unarguably, The Galleria, Texas' largest shopping center and home to upscale stores like Louis Vuitton, Montblanc, Chanel, Gucci, Tiffany & Co., and Neiman Marcus, just to name a few.