16 Jun 2024 8:14 am
Indoor shopping malls across America are struggling due to technology and changing consumer behavior.
On average, household income has stagnated or declined for middle- and low-income households, who form a major component of mall consumers.
Meanwhile, the rise of online shopping has displaced the need for malls in people’s lives.
Online shopping has doubled in the past seven years, and teenagers who used to hang out at the mall now socialize over social media and phones.
No new indoor malls have been built since 2006, and 15 percent of malls are expected to close their stores in the next 10 years; some will shut down entirely and others will be repurposed.
Shopping malls are more than twice as likely to be vacant as the average retail space.
Department stores are struggling to compete against new online direct-to-consumer competitors and smaller brick-and-mortar retailers that have been able to keep up with the ever-changing demand of consumers.
The United States is home to an estimated 1,150 malls; some sources project that by 2032, there may be as few as 150 malls still in operation. Projections indicate that up to 87% of large shopping malls may close over 10 years. Closed malls are empty for an average of 3 years and 11 months.
Empty malls are often repurposed; such subsequent uses include sports centers, flex spaces, restaurants, and self-storage.