U.S. Malls Making a Comeback: Study (2024)

FAQs

Why are malls making a comeback? ›

“Gen Z shoppers are bringing back the mall shopping center experience,” said Kristin Grove, senior vice president of national retail leasing at the global real estate firm JLL. “They want a sense of community. They want to bridge the gap between the social media that they're doing, and meet and shop in-person.”

Just when we thought the era of physical retail was over, brick-and-mortar stores are making a surprising comeback. Despite the surge of online shopping, physical retailers have found ways to adapt and thrive. Let's explore why this old-school shopping model is far from extinct.

The Mall of America was built on the site of Metropolitan Stadium, home of Major League Baseball's Minnesota Twins until 1982. After the stadium was demolished in 1985, the Triple Five Group won development rights with a grandiose proposal for a mega-mall, amusem*nt park, convention centre, and hotel complex.

Final answer: The key to success at retail establishments, including the Mall of America, is exceptional customer service facilitated by employee satisfaction. Companies achieve this by creating positive work environments, offering comprehensive training, and fostering a culture of hospitality.

Retail experts are saying that Gen Z'ers have played a crucial role in overall mall growth and their rebound in the past few years. This generation of young shoppers often expects instant gratification, which is a key reason they prefer in-store shopping.

Although U.S. malls were hit hard over the past few years, as lockdowns and rising costs contributed to a significant drop in foot traffic, shopping centers have proven resilient, a new white paper from data analyst Placer.ai concludes.

The future of malls in America is uncertain, but one thing is clear: they must adapt to survive. Whether it's diversifying their offerings or transitioning to essential services, malls are finding new ways to stay relevant.

There are currently 700 malls in the U.S., but considering closure rates, these could be reduced to just 150. The Wall Street Journal (WSJ) said the downward trend shows how large shopping centres have suffered since Covid-19, more than other brick-and-mortar or e-commerce retailers.

Mall brands from the early 2000s are making a comeback. Business Insider asked analysts what brands have the most potential for turnaround in 2024. Gap, Victoria's Secret, and Bath & Body Works were among the retailers mentioned.

Del Amo Fashion Center

Located outside of Los Angeles in Torrance, California, Del Amo Fashion Center mall clocks in at over 2.5 million square feet.

Who owns Mall of America? ›

It opened in 1992, and is the largest mall in the United States, the largest in the Western Hemisphere, and the twelfth largest shopping mall in the world. The mall is managed by the Triple Five Group (which in turn is owned by the Ghermezian family, along with the West Edmonton Mall and the American Dream).

When the Southdale Center in Edina, Minnesota, opened its doors in 1956, its design was revolutionary. Southdale was the first modern indoor mall in the U.S., and eventually became a national symbol of car-centric, consumerist, postwar suburbia.

MOA^® has earned a national reputation for entertaining guests with celebrity appearances, live music, charitable initiatives, product launches, book signings + movie premieres.

Mall of America hosts more than 400 events a year, ranging from concerts, to celebrity appearances and fashion shows. Each year, 40 million people from around the world visit the mall, generating nearly $2 billion each year in economic impact for the state.

The mall was designed and built by Triple Five Group, owned by the Ghermezian brothers of Canada, who also own the biggest shopping mall in North America, the West Edmonton Mall. Mall of America is on the past site of Metropolitan Stadium, where the Minnesota Vikings and Minnesota Twins played until the Hubert H.

Outdated mall model

Another factor that has contributed to the decline of shopping malls is the fact that they are becoming increasingly outdated. With the rise of newer, more modern retail spaces like outlet villages and pop-up shops, malls are starting to look a little bit old-fashioned in comparison.

Get Togethers: Malls were not just shopping destinations; they were also social hubs where friends and families would meet up. Entertainment: Malls often featured arcades, movie theaters, and food courts, providing a range of entertainment options for visitors.

Key Insights

Mall visits are returning to pre-COVID levels. Weekday/weekend visit distribution has reverted to 2019 norms, but hourly visit patterns have shifted. Experiences of all kinds can draw visitors to malls. Pop-ups, whether short or longer term, are a powerful tool to drive traffic.