The news on malls is at times troubling, but may not tell the story.
The fear of the mall industry collapsing on itself like a giant sink hole is a major overstatement. The developers and retailers are changing the landscape of shopping for sure, but not collapsing. Just look at the facts:
In the last year LEASED space in mall has climbed to a national average of 91% leased.
Centers like Springfield Town Center invest in remodeling and increased leasing of space to 100%!
In 2007 E Commerce was just 3.5% of all sales, and in the last ten years it has slowly climbed to 8.5% (1st qtr. 2017)
Only 7% of the nations population said they shop on line only!
People still desire to touch, feel or taste the products before they buy. Up to 62% of the shoppers see this as the main reason to shop in a Brick and Mortar location.
See the FULL REPORT FROM ICSC ( International Council of Shopping Centers)
Yes the mall space is changing, but the eCommerce is not taking over the malls. For the e-commerce side, they miss the value of experiences that people, including Millennials, are looking for.
49% of shoppers want to bring something home immediately
20% want an easy return process
18% enjoy the in store environment
13% want to ask questions
Millennials are a social bunch, and the oldest are turning 40 now, and shopping.
There is still time to reach the consumer in the mall for Back to School season as well as holiday. Let’s act together.