Much has been written about the rapid increase in online shopping, but the fact remains that there is and will always be a large social component to the shopping experience and therefore brick and mortar retail will continue to have its place. That being said, where will consumers actually go to buy their goods and enjoy the social aspect of shopping?
Have you been to a shopping mall lately? If not, why not? Is it Covid-19 concerns? Safety? Store selection? Or is the mall you used to shop in even in business today? In an article last week by Business of Fashion writers, they contend that US retailers are shunning urban malls and shifting to open-air centers. The article states, “Even in the depths of the 2009 financial crisis, it was never this bad for the owners of the world’s biggest shopping malls.”
New real estate industry data for June reveals that vacancy rates in the United States’ malls could surpass those in suburban shopping centers and strip malls. Experts say that a deeper change is underway, with property owners focusing investment on open air locations and smaller stores in cheaper locations where shoppers can feel more at ease in the post-Covid world.
There clearly is a trend away from malls today, but is this just part of the “normal” business cycle only to return to being an important part of the shopping experience? The open-air center concept may work in suburban areas with available land, but where does that leave more congested city locations? No one has all the answers regarding how shoppers will buy going forward. Online has some advantages, but especially in the fashion world, people like to touch and feel the product before buying and that will never change. So will malls go away? Probably not, but how they operate will change going forward. The smart retailers will continue to work to find the right mix of online vs. in-person, delivered vs. picked up at the curb or in the store. The interesting thing will be the journey getting there, because we all know people will continue to shop!
About AKCEL Partners: AKCEL Partners is a sales consultancy founded by three executives with strong bonds throughout the textile, apparel, brand and retail industries. AKCEL Partners offers strategic sales planning combined with experienced, highly networked sales professionals who give clients immediate access to targeted decision-makers. We are dedicated to meeting or exceeding our clients’ short- and long-term revenue goals. To learn more, go to www.AKCELPartners.com.
