Technology has indeed taken over the world and has created change in many businesses. Can you imagine there being an extinction of malls?
As much as the idea of that hurts us, we have to admit that it is very possible. According to sites such as www.deadmalls.com, there is practically a mall purge occurring. Some of America’s oldest malls such as Northland Center in Michigan, Woodville Mall, and Rolling Acres Mall in Ohio are now out of business.
One of the main causes for the decline in sales and profit within malls is online shopping. There are plenty of customers who rather online shop than go directly into a store because we are now provided with a quicker and efficient way of shopping. The truth is, it is way more convenient. Sometimes, stores may not have updated their inventory and only purchasing merchandise online can help avoid that issue. Long lines and crowded stores aren’t for everyone which can push people in the direction of getting their shopping done at home because that service is available to them.
Macy’s, Nordstrom, JC Penney and Neiman Marcus are the bread and butter to the business performance of malls. Department stores bring in so much money because they occupy the space and offer customers a vast variety of brands. Unfortunately, these stores are now finding themselves in a financial hole and are either trying to take action to prevent the worst from happening, or are being faced with having to shut down the business. Within the last six years, 300+ Sears locations have been closed as well as there being a rise in Macy’s closures. This is a huge concern for employees in regards to the stability of their jobs and of course the longevity of the establishment.
Rolling Acres Mall in Ohio has been abandoned for two years
Stores such as TJ Maxx, Century 21 and Marshalls are considered “off-price stores” and they are indeed competition. They add to the threat of death for American malls because of what their success stems from. The fact that they know what the people want and they choose to cut down the prices on name brand items are absolutely genius, but this has caused a drop in the productivity of businesses in shopping malls. Nordstrom is one of the stores that are fighting to keep the flow of business up to par. One of their best moves was opening over 140 Nordstrom Racks in addition to their online site. Nordstrom Racks is just like TJ Maxx, but the difference is it is owned by Nordstrom. There are more Nordstrom Racks than full-line stores because of the amount of store traffic they are getting from Racks. Who doesn’t love a good discount? Amazon and so many other online boutiques are following this same trend. The chairman of Retail Consulting, Howard Davidowitz, has stated that half of American malls will fail within the next 20 years.
Do you think there is a chance of saving our malls or will online shopping and off-price stores kill off the traditional shopping mall experience? We would love to know your thoughts. Share in the comments below.
Written By: Nishoba Snow