The American shopping mall is being reinvented

As major retailers and department stores continue closing, malls are looking for ways to boost foot traffic and sales.

American malls were never dead. The decades-old design just needed to be revisited. Malls were once home to major department stores, until the convenience of e-commerce drew shoppers away and led to closures. But consumers are most enticed by value and the immediate reward of shopping, prompting some developers to completely revamp the retail experience. They’re reconfiguring malls so consumers can live within steps of their favorite shopping or dining spots. The “live, work, play” mixed-use model — which combines apartment units, fitness clubs, hotels, medical centers, office units, restaurants and retail — offers an alternative to classic shopping centers, according to Ray Wimer, a professor of retail practice at Syracuse University. “It’s not just retail. It’s bringing in entertainment venues, lots of restaurants and apartments or condos to engage with a younger consumer,” said Wimer. Less than 30% of malls are “A-level,” meaning they complete more than 400 sales per square foot, Wimer estimated. Those malls are doing fine, he said, but others are looking to reinvent themselves. Some have made a comeback from the Covid-19 pandemic. The new mixed-use developments are a far cry from the standard windowless malls that took shape in the 1970s. Mixed-use malls retain an assortment of retail stores and dining options, but those traditional mall staples now share space with bank branches, blood centers, police stations, tax preparation services and even residences.