How U.S. Malls Survived The Death Of Department Stores
CNBC・2 minutes read
Traditional anchor department stores like JCPenney and Macy's are struggling, leading malls to adapt by adding experiential options like grocery stores and gyms to attract customers with changing preferences. Despite challenges, mall owners are repurposing anchor store spaces to create new experiences and drive foot traffic, highlighting malls' continued significance in the retail sector.
Insights
- Traditional anchor stores like JCPenney, Macy's, and Sears are struggling, leading malls to innovate by introducing experiential offerings such as grocery chains, casinos, gyms, and residential apartments to attract customers seeking new experiences.
- Changing consumer preferences have impacted department stores, with luxury shoppers favoring higher-end malls and discount shoppers opting for off-price chains like TJ Maxx and Marshalls, prompting mall owners to repurpose empty anchor store spaces to create new experiences and drive foot traffic.
Get key ideas from YouTube videos. It’s free
Recent questions
Why are department stores struggling in malls?
Changing consumer preferences impact traditional department stores.
How are malls adapting to the changing retail landscape?
Malls are repurposing spaces with new experiential offerings.
What percentage of U.S. consumer spending occurs in malls?
Approximately 13% of U.S. consumer spending is in malls.
What are some examples of experiential offerings in malls?
Experiential offerings include grocery chains, casinos, and gyms.
How have some malls managed to thrive despite challenges?
By embracing new models and experiences, some malls have thrived.
Related videos
Marketing 360
Retail Store Marketing Strategy For The New World - 9 Tips
Cash Jordan
It Begins… Entire NYC Mall Closes Over Theft
The Proper People
Exploring the Abandoned Landmark Mall - Just Days Before Demolition
Safiya Nygaard
How Retail Stores Manipulate You
CBC News
Outlets vs retail, and Winners prices: Sale fail? (CBC Marketplace)
Summary
00:00
Malls adapt to changing consumer preferences
- U.S. malls traditionally featured anchor stores like JCPenney, Macy's, and Sears, but these department stores are now struggling, impacting the overall performance of malls.
- Some malls have adapted by replacing department stores with experiential offerings like grocery chains, casinos, gyms, and residential apartments to attract customers seeking new experiences.
- Department stores are facing challenges due to changing consumer preferences, with luxury shoppers favoring higher-end malls and discount shoppers opting for off-price chains like TJ Maxx and Marshalls.
- Mall owners are repurposing empty anchor store spaces to create new experiences for customers, such as providing photo opportunities, evoking senses, and offering diverse concepts to drive foot traffic.
- American malls are generally outperforming other retail formats, with about 13% of U.S. consumer spending on retail goods and services occurring in malls in the first quarter of 2023.
- While some malls have closed due to underperformance, others have thrived by embracing new models and experiences, indicating that malls will continue to have a significant role in the retail sector.
