When I was home over winter break, I went to visit the Mall of America (MOA) in Bloomington, Minnesota. It’s my childhood mall and I went there constantly as a kid, so to me, it’s just a regular old mall. However, to outsiders, it might seem like a top-tier mall.
MOA is the largest mall in the entire U.S., with more than 500 stores, 60 restaurants, an indoor theme park, a movie theater, an aquarium, mini-golf and so much more. As a result, one would expect it to constantly be busy. I was certainly expecting to see the familiar hustle and bustle of shopping: crowded stores and festive decorations for the winter holidays.
Instead, what I saw was a nearly empty space. Quiet corridors, a fraction of the amount of shoppers one would usually see and a palpable sense of decline. It was a sobering realization, one that reflects a larger trend across retail.
This experience prompted me to think: are shopping malls becoming obsolete? The primary culprit seems to be the rapid surge in online shopping, but other factors may play a significant role as well.
Brief History of Malls
The first enclosed mall in America was the Southdale Shopping Center in Edina, Minnesota, which opened in 1956. It was incredibly successful from the start. A mall patron could buy groceries, go to the beauty parlor, visit the bank and enjoy museum-like art all in one building. Americans previously didn’t have the luxury of doing so much in a single place. Eventually, the mall was viewed as a novelty; a place for socialization and versatile shopping. By their prime in the 1970s and 1980s, malls had cemented themselves as dominant retail hubs and were a never-ending source of income.
Malls began to experience a slight decline in the early 2000s. There was an overabundance of suburban malls, causing dated and poorly maintained malls to become commonplace. Department stores began losing customers to big box retailers such as Walmart and Target. Retailers such as JCPenney, Kohl’s and Macy’s were at a disadvantage compared to bargain stores like T.J.Maxx, which became more attractive to consumers. Over time, mall staples such as Sears, Payless ShoeSource and Toys “R” US became scarce.
In the 1980s, there were approximately 2,500 malls in the United States. As of 2024, there are only 1,150, and that number is expected to continue declining.
The Convenience of Online Shopping
Online shopping has truly modernized the retail landscape by offering unparalleled convenience. The ability to purchase pretty much anything from the comfort of one’s home, without worrying about traffic, parking, navigating crowded stores or enduring long checkout lines, has made online shopping the preferred choice for many. Retail giants such as Amazon, Shein and Walmart have capitalized on this shift, providing a cohesive and often more affordable shopping experience. With features such as next-day delivery, easy returns and personalized recommendations, it’s no wonder that consumers are swarming to online platforms.
Additionally, the rise of mobile shopping apps and social media marketing has made impulse purchasing easier than ever. Platforms like Instagram and TikTok seamlessly integrate shopping experiences, allowing users to browse and buy within the app. This intersection of social media and online shopping further drives consumers away from physical stores.
Malls Struggling to Adapt
However, it would be overly simplistic to attribute the decline of malls merely to the rise of online retail. Malls themselves have struggled to adapt to changing consumer preferences. Once a vibrant social hub, malls now seem stagnant, offering little in the way of innovation. The presence of the same chain stores, food courts and kiosks selling phone accessories or beauty products no longer draws the crowds it once did. Consumers today look for unique, immersive experiences rather than a simple shopping trip.
The Impact of the COVID-19 Pandemic
The COVID-19 pandemic further propelled this shift by necessitating a greater reliance on online shopping. Many brick-and-mortar retailers were unable to withstand the economic pressures brought on by lockdowns, and those that survived continue to face significant challenges in attracting foot traffic. Several large retailers such as J. Crew, Pier 1 Imports and Lord & Taylor filed for bankruptcy during the pandemic. The pandemic essentially changed consumer habits, pushing people to favor contactless, convenient shopping options over in-person experiences.
Even as restrictions lifted, consumers found themselves accustomed to the ease of online shopping, leading to a slower-than-expected recovery for malls. Retailers were forced to reassess their business models, with some opting to shut down underperforming physical locations and focus solely on online sales.
The Future of Malls: Reinvention or Decline?
Looking ahead, the future of malls remains uncertain. Some have attempted to reinvent themselves by incorporating numerous entertainment options. For example, the American Dream Mall in East Rutherford, New Jersey opened their theme park and indoor ski resort in 2019, followed by their water park in 2020. These recent and diverse openings have the potential to revitalize traditional malls. Additionally, incorporating co-working spaces and residential units into mall spaces provides another potential avenue for revitalization. According to CNBC, at least 192 U.S. malls planned to add housing to their footprint as of January 2022, and at least 30 of those malls have constructed apartments since the pandemic began. Living in close proximity to what malls have to offer will naturally lead to increased foot traffic in stores.
Ultimately, while there is a lingering sense of nostalgia associated with malls, the convenience of online shopping continues to dominate. Unless significant changes are made to enhance the in-person shopping experience, malls may soon become remnants of the past. The challenge lies in finding a balance between tradition and innovation to stay relevant in an ever-changing retail landscape. As time goes on, we can only wonder whether or not shopping malls can adapt and thrive in this evolving consumer world, or if their decline is inevitable.