In years past, the big draw to a shopping center was the multi-screen movie theater and the major department store. The key tenant in a shopping center was often a department store from a nationwide chain that carried a wide variety of quality, brand-name merchandise. Many of the large department stores have now closed their doors leaving the centers without a major tenant mainly because of the Covid lockdown. Online shopping became a necessity and later a habit. Many businesses closed their doors and have never reopened them.
Now that life has recovered and things are back to normal, the shopping center of the past has had to rethink how to get the online shoppers to come back to the malls and experience the pleasure of physical shopping again.
The Success of Todays Mall
The success of todays mall no longer is measured by sales per square foot and the bottom line of a retail store, it is measured by how long people remain in the center, how they interact with the environment, and ultimately what keeps them interested in the center as a shopping and entertainment venue. The in-person retail buying adventure in malls remains valuable because it offers something digital shopping can’t replace, the connection to the outside world, the presence of activity and the connection with other people. Shoppers still need the ability to see, touch and try products before they buy.
Investors and developers have recognized that the classic centers may not be able to sustain foot traffic like yesteryear. They are looking for more creative anchor tenants to replace those empty spaces left by the major department stores. Turning those spaces into something new, businesses that keep potential buyers coming back to the center. Fitness centers with swimming pools, a basketball court, saunas, an indoor turf running track, yoga studios, gaming centers, grocery stores, healthcare clinics, auto supply stores, even dollar stores. The large malls have turned spaces that used to be retail stores into other uses, such as, pickleball facilities, churches, ice skating or roller skating rinks and escape rooms. These “different” business are increasingly drawing visitors who also become customers in the retail stores.
The Next Generation of Malls
The shopping center of tomorrow is an entertainment center, and a gathering place offering much more than just a place where you can buy consumer goods. It hinges more on participation and activities.
Mall Of America in Bloomington, Minnesota, which was one of the first centers to offer entertainment mixed in with retail shopping, is planning a major project called “Mystery Cove” an indoor water park scheduled to open in 2029.
Many shopping malls throughout the country are improving the atmosphere of the center by replacing the ‘old’ outdated food court with a more elegant eating experience such as an outdoor plaza, water fountains, terraces, sidewalk cafes and adding inviting and comfortable seating areas.