One third of malls gone in 2020 with 25% more to close in the next 3-5 years
America's Malls: Adapt or Die?
Current State of Malls
- America's malls are facing significant challenges, with over 1,500 malls in the U.S. in 2012 and one-third now closed, leaving about 1,000 remaining.
- A recent report predicts that 25% of existing malls may close within the next three to five years due to changing consumer habits and increased online shopping.
Impact of the Pandemic
- The COVID-19 pandemic has exacerbated issues for malls, leading to decreased foot traffic as consumers turn to online platforms like Amazon and eBay.
Innovative Solutions for Survival
- Mall owners are being forced to innovate by introducing unique attractions such as indoor ski slopes, hotels, mega churches, and water parks.
- Brookfield Property Retail operates over 170 malls and emphasizes the importance of embracing change to adapt successfully.
New Business Models
- Wes Haws, CEO of Blue Zoo (an aquarium located in a mall), highlights that experiential businesses can drive traffic back into malls.
- Health care tenants have also become more prevalent in malls; full-service medical clinics have seen a growth rate of over 90% in five years.
Challenges Ahead
- Malls focused solely on retail face significant struggles; adaptability is crucial for survival amidst ongoing changes.
- A Deloitte poll indicates nearly half of shoppers plan to avoid malls altogether. In response, many malls are enhancing safety measures like increased cleaning protocols and social distancing practices.