The End of the Mall as we Know It

February 8, 2010 - Posted to In-Store Shopping, Trends.

Strolling through the enclosed walkways at a local mall invokes the same question from every shopper. Is this place going out of business? With every other retail space abandoned, we can't help but wonder what will become of mall walkers and kiosk annoyers. The Apocalypse is coming for indoor shopping establishments...but what will fill in the gaps?

According to Green Street Advisors, an independent research firm, malls across America averaged a 6.5% drop in sales last year, in large part due to the economy. With a baseline of $250 per square foot needed to stay afloat, many stores are jumping ship. Only one enclosed mall has opened in the last four years.

This decline is nothing new. Malls start up, generating buzz and attracting a healthy crowd for a couple decades, and then decline--either because something else newer pops up or the surrounding neighborhood worsens. Anyone who has lived in the same area long enough to see the cycle can spot a change when temporary stores replace the big chains. Crime starts to creep in shortly after and then the once "place to be" hangout is now a ghost town.

Not that shoppers are happy about it. Many teetering malls once served as the area's get together spot--a place where the family can stroll, shop, and enjoy Saturdays. There's no replacing fond mall memories, whether we'd like to admit it or not. Living in a town with one mall, currently on the downward spiral, I'd much prefer healthy commerce so I can have a fun place to visit. But the stationary, monolithic malls that popped up half a century ago can't change as fast as they need to. With additional heating and cooling, repairs, and renovations, mall have more overhead than alternative shopping venues. Plus our iPhone-minded culture turns over technology and design far faster than the 60's mall structure ever could.

It's tough to compete with online sales. Folks can lounge in the recliner after the evening news and shop without facing dirty fitting rooms and vapid high school sales reps. With more sizing and color options available and lowering shipping costs, the shopper can save gas, time, and headache by ordering online. The future of shopping is anything but bleak. Another trend taking hold in the last decade is the outdoor mall. No, it's not quite the same feel as a traditional enclosed space (walkers must be aware of zooming traffic), but at least shoppers can try on the jeans before buying.

And what will become of our beloved, flat-lined, mall centers? Some, like the Factoria Mall in Seattle, plan on converting to living and shopping hybrids connected to other outdoor spaces. Designed to be more versatile and current, designers can still use the space for retail, but maximize it's potential in other ways. Architects around the country are planning extensive redevelopment to compensate for this trend. Our malls as we've known them may be extinct as is, but they're far from dead.

Photo by: tristam sparks

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