Are Malls Making a Comeback?
Malls have long been seen as the epitome of failed retail space. The first mall in the United States opened in the mid-1950s, and since then, there has been a significant increase in mall development. However, with oversaturation and the rise of e-commerce, many believe that malls have lost their relevance.
But according to Placer.ai, a commercial real estate data company, foot traffic tells a different story. While visits to malls are still negative due to pandemic lockdowns and competition from other centers, there is evidence that shoppers are returning to this segment. In fact,”the narrowing visit gaps suggest that foot traffic may pick up again by 2024,” states Placer.ai’s recent white paper.
The report highlights:
– Weekday shopping patterns remain consistent
– Fewer visits during late morning-midday and late evening periods
– Increasing visits during afternoon and early evening hours
– Non-traditional draws such as gyms or entertainment complexes boost visitors
The Importance of Experience
Before lockdowns began last year experiential retail was already gaining popularity among consumers – offering more than just shopping but also incorporating activities like amusement parks or fitness centers into their spaces.
For example,Scheels at Chandler Fashion Center in Arizona offers visitors an experience unlike any other – including rides on a 45-foot Ferris wheel or viewing an impressive 16k gallon saltwater aquarium.
Consumers Crave Dining Options
Dining options can also drive more people towards malls.Placer.ai points out how when Texas Roadhouse steakhouse opened at Southgate Mallin Missoula,Montana monthly visits increased significantly,and this trend continues today bringing sustained foot traffic increases for themall overall .
Shoppers Want Entertainment
Some centers incorporate “performance” water features while others offer “eatertainment” options.Placer.aidescribes how Cross Creek Mallin North Carolina added a Main Event with bowling lanes,laser tag,video games,and food to their space,resulting in increased monthly visits and sustained foot traffic.
Pop-Ups Drive Visits
Short-term tenants or “pop-ups” can also help drive traffic to malls. These temporary stores give consumers something new to buy while helping the tenant establish their presence in the market.Placer.ai notes how Shein,a pop-up expert,hosted a three-day event at Woodfield Mallin Illinois last December which attracted shoppers and boosted foot traffic during an otherwise slow pre-holiday shopping period.
Additionally,longer-term pop-up residences of approximately six months have proven successful for both retailers and malls alike accordingto Placer.ai .
In conclusion,malls may not be as irrelevant as some believe.With strategic planning that incorporates experiential retail,dining options,and entertainment centers along with utilizing tactics like pop-ups,malls can continue to thrive despite challenges from e-commerce.
