Malls – They Aren’t Going Anywhere
Once a staple of American life, malls seemed to be dying a slow death over the past decade. The world of online shopping, the rise of big-box retailers, and the decline of traditional department stores all played a part in the downfall of these traditional shopping centers. But a recent report from Coresight Research paints a different picture. The numbers say that malls are very much back in the game, and stronger than ever. With occupancy rates at a record high and foot traffic showing a significant increase, it appears that brick and mortar is making a surprising comeback.
The report found that malls have an average occupancy rate of 95.1%.
That’s an impressive number, reflecting a significant shift from previous years. Another surprising statistic is that foot traffic increased by 12% in 2022 when compared to 2019 before the pandemic began. This data indicates that people are eager to return to shopping centers, indicating a renewed interest in in-person shopping experiences.
Brands are trying to find a balance between online and physical marketing. In the first quarter of 2023, 12.9% of all retail spending went through malls. This represents a significant increase in just the last year, showing how much progress has been made in promoting both online and physical shopping through great marketing.
One reason that malls have been able to make such a significant comeback is the increased investment in technology. Mall operators have worked hard to provide a seamless shopping experience for their customers, integrating online and in-store shopping to create a great experience. Throwing some in store only deals seemed to have helped as well.
The comeback of the mall isn’t just limited to mature shoppers either. A recent survey by the International Council of Shopping Centers found that 97% of Gen Z shoppers still shop at brick-and-mortar stores, compared to 95% online. This indicates that younger consumers still value the unique shopping experiences and social interactions that only in-person shopping can provide.
Are you an in store shopper or an online shopper?