Once the heart of American retail, the US shopping mall is in a steep decline. Of the roughly 1,200 malls across the country, fewer than half are expected to remain in business by 2023. The last major new mall opened three years ago, leading some operators to suspect that the final one has already been built.
Online shopping is often blamed, but experts say overbuilding is a bigger factor. “It’s much less about technology than it is about overbuilding,” said Bruce Batkin, chief executive of Terra Capital Partners. Many malls are struggling with high vacancy rates, crime, and a glut of retail space.
However, the Mall of America in Minnesota offers a contrasting picture. Attracting over 40 million visitors annually—including 3–5 million from overseas, with UK visitors the largest segment—it thrives by offering more than shopping. Its attractions include an indoor theme park, aquarium, cinemas, hotels, and restaurants open until midnight.
The mall’s success lies in creating “unexpected moments,” said Christopher Grap, senior manager of experiential design. Features like a farting bench and a resident poet who wrote personalised poems for shoppers help draw crowds. “People want physical, tactile experiences they can be part of,” Grap added.
While the Mall of America adapts, many other malls are becoming hollow shells, described as resembling abandoned film sets. The shift away from traditional retail anchors such as Macy’s and Sears has accelerated, and the outlook for weaker malls remains bleak.
