Malls used to be everyone’s favourite hangout at one point of time and still is for some though for many the idea of going to the mall may have lost its allure.
This is partly due to shopping having migrated online for many people and the toppling of huge retail brands that used to dominate the market with gigantic flagship stores.
According to a 2017 report by Credit Suisse and that too pre-pandemic, one in four US malls is expected to close by 2022.
In the United States alone retailers have announced the closing of more than 10,600 stores nationwide according to real estate research firm Costar.
Studies show that malls that are surviving have reinvented themselves as comprehensive lifestyle hubs with fitness centres, spas, clinics, cafés and restaurants.
Aside from the preference for online shopping, malls are also dying due to high maintenance costs as with fewer people visiting, rent and food court sales are also affected.
In addition the rise of fast fashion is also a factor. The popularity of this has resulted in people moving away from traditional retail to trendy clothes that are cheaper especially with the pandemic as people become more frugal and have less of a tendency to splurge.
Can they become popular once more?
Possibly, if the focus is more on lifestyle and the experience of the mall rather than being just a place to buy things. Making it even more family-friendly with entertainment or focusing on niche markets such as offering high end brands that tend to be popular like Apple or electronic goods outlets like Harvey Norman, Radio Shack and the like also increases appeal.
In addition having more grocery stores with niche appeal would also go down well such as those selling organic produce or sustainable goods which may not be suitable to be sold online as customers would want to be able to touch, feel and judge the products.
Aiming for unique specialised products not easily available online would definitely help increase foot traffic.
Another option would be for malls to aim for community based events offering services that cater to the public in that locality for example.
Another way is to target the younger generation who may also want to have the option of co-working spaces which are tech-friendly in a mall as that enables them to meet friends, visit a café, hold a meeting at a nice venue or even do some shopping.