What happened to the mall?
A recent article in Newsweek magazine poses the question: is the mall dead? The article notes that last year was the first year in half a century where a new indoor mall did not open somewhere in the country. Others write that fast-growing “lifestyle centers” – open-air developments that contain some mix of shopping, office space, entertainment, outdoor parks, recreational facilities and housing – are replacing regional and local malls as the new shopping destination of choice. And another recent article in New York Times article implies that the waning fortunes of shopping malls are the fault of worried consumers unwilling to spend money.
However, the Newsweek article lays some of the blame for traditional malls’ decline on anti-consumption, pro-environment, and fair labor sentiments held by the public. They report that 40% of young shoppers prefer to purchase items that are “socially conscious” – ie, environmentally safe and produced through fair labor – and that traditional malls have little to offer that fits this description.
Do you think the rise in the anti-consumption and pro-environment attitudes detailed by Newsweek is responsible for the decline of shopping malls, or are factors like the growth of lifestyle centers and internet shopping more responsible? Does consumers’ economic uncertainties mean that all shopping centers (and not just malls) are likely to close or have economic difficulties soon?
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Well, IMHO Malls have pretty much went the same as the economy. Down The tube. Wal-Marts, Big Ks (K-Mart), and Targets stand alones are pretty much the main retail centers of the last few years. Rent or leases on malls have went out of sight and with the high dollar specialty stores that are located in them, not too many people can be overly enthused to buy a Chinese made piece of clothing that the same one with a different name sewed on it can be bought a block or two away at Wal-Mart or a similar discount store for half the price of the big name brand at the mall. Another example is the food courts at the malls. Convincing someone to pay half again as much for a slice of pizza at a mall except for a kid that is spending mom and dad’s money they didn’t earn is not happening in a worsening economy. Rent in an existing mall here in my locale is three times what it is in other areas.
While I don’t know the actual numbers, I’ll bet that the “… 40% of young shoppers [who] prefer to purchase items that are “socially conscious”” account for less than 10% of revenues. I agree with Gary on this one.
I think the malls are missing a good bet by not designing them with an upper floor of affordable apartments for the mall employees and retired people. The Wife and I would love to live over a mall. It would provide a dry place to walk in the winter and would provide the mall with an illusion of more shoppers.
Just an opinion, but my guess is that there are two (or more) relevant factors that may be in play. First, I think that long term cultural fads, especially among young folks, are inevitable. New is attractive. Second, I believe that over time rent at malls increased enough to motivate businesses to seek more cost effective locations and marketing strategies. Perhaps there is someone knowledgeable to add their expertise.
I think chain stores led to the demise of mall culture. At one time visiting a mall was a shopping adventure- most stores at one mall were nothing like those in a another mall. When I went on vacations with my family, we always would visit the local mall to see what it had to offer, but why bother now when they’re all the same stores, with the same muzak and the same mass-produced garbage?
Wal-Mart is surely hurting the malls. The ignorant American shopper is buying himself out of prominence in the world economy. They buy the Chinese crap from Wal-Mart, the sleaziest company in America. By doing so they are putting millions of Americans out of work. What idiots we American be.
Walmart has surely put a hurting on America. Interesting that shopping at Walmart is always a Zogby question.
I recently went to the Ontario Mills mall in Southern California to buy tickets for a Craig Shoemaker performance at the Improv. I decided to go in to buy some CDs, only to find that the Virgin Megastore had closed. As I walked through the mall, I noticed a lot of people, but none of the shops, all clothing and jewelry stores, were drawing in customers.
It’s a shame to see the demise of the local “Record Shop”, another vanishing reminder of what the American Way once was. Downloads are no replacement for shared human experiences. Today’s kids don’t know what they are missing.
Lifestyle centers sound remarkably like the small cities of the 50s and 60s. I grew up near Richmond, Indiana a city of about 50K. The downtown consisted of store fronts on street level, professional offices on the 2nd story and apartment on the floor or two above that. The movie theaters and restaurants were downtown as well. So an accountant could live on the 3rd floor above his office and live a comfortable life without needing an automobile. A decade of recession [depression?] might make that look pretty good.