by Nick DiMatteo, Fortyfivegames
Remember when movies about teens and young adults almost always had a scene in a mall? This was pretty much a storyline and setting staple through the 80s, 90s and into the early 2000s. Back to the Future, Clueless, Fast Times at Ridgemont High, Mean Girls, Dawn of the Dead, Paul Blart: Mall Cop and, of course, Mallrats.
The indoor mall with a food court, chain clothing stores, a few department store anchors, a music store, an indoor fountain, an arcade filled with flashing lights and teens, and a movie theatre was practically a character itself in the popular movies of these decades.
This year, these large-scale, climate-controlled structures of endless indoor walking are finding foot traffic to be less than their open-air counterparts. Sears, which once operated hundreds of locations anchoring malls, has as few as a dozen such locations today. Mallgoers seem to be more inclined to seek smaller retailers and vendors with a boutique feel.
Many Generation X members reminisce about the local mall experience, myself being one of them. Meanwhile, open mall complexes provide a somewhat different outing. Patrons of the mall environment are perhaps more selective than ever. There is a desire to find niche stores, varied and fun food options, as well as inventive and interactive experiences.
These are all things that online shopping can’t provide despite its conveniences.
Open-air shopping centers
The mall experience trend is moving towards open-air shopping center complexes with a decidedly high-end feel. The modern consumer has the option to procure nearly any item and many services from the internet without the need to even leave their own home.
However, there are still reasons why consumers may want to be able to make an in-person purchase. For one, sometimes even the fastest of Amazon or home delivery services won’t work when you have an immediate need for an item. When it comes to clothing, cosmetics or home decor, people frequently want to experience the quality, color, texture or even scent, of items in person.
For some, there is a “thrill of the hunt” element in shopping combined with the energy and bustle of being around other shoppers. Personalized customer service interactions may enhance the experience in ways that scrolling and clicking a button simply don’t compare.
Recent data indicates that all mall categories returned closer to pre-pandemic levels in Quarter 2 of this year. However, Open-Air Lifestyle Centers outperformed other segments with visits just slightly lower (0.1%) than in the same quarter last year.
Things are looking up for the mall landscape in general, with an edge for the open-air shopping and leisure concepts.
The outlet mall experience
Outlet malls fall somewhere in between the indoor mall and open-air mall categories. Some outlet malls are indoor structures while others are open. However, outlet malls have struggled in recent quarters with volatility in foot traffic levels. These malls tend to be more destination trips with many consumers traveling greater distances to shop in outlet stores.
Some outlet centers do not offer the food and entertainment options of traditional indoor and outdoor malls. Instead, they choose to focus on money-saving opportunities at select retailers. Traditionally, these malls will tend to see spikes in foot traffic around large shopping events. For instance, Back To School time or the weeks directly preceding major holidays.
Often, the mix of retailers is more limited. These centers may not offer casual or higher-end eateries, grocery stores, major retailers or pet stores in proximity. As a result, visitors to outlet malls may not feel there is as full an experience to be had as opposed to other shopping center options.
Outdoor vs. indoor malls
There are a number of reasons higher-end open-air shopping centers are continuing to grow in popularity. Many of the classic indoor malls of today were constructed in the 1980s. So, they did not incorporate some of the current technologies and awareness we have today when it comes to sustainability.
These malls took a “more is more” approach and required climate control and lighting sources for vast spaces. Open-air concepts are able to eliminate this, thus making them more energy efficient, as well as reducing certain common area costs for tenants. Also, in the wake of the global pandemic, outdoor shopping areas were quicker to recover than their enclosed counterparts. People perceived these complexes as the safer and healthier option due to the ability to traverse the space in open-air areas and limit exposure to others indoors.
The outdoor mall experience appeals to nostalgia in a different way than traditional indoor concepts. While their indoor predecessors were supposed to provide an alternative to the “American main street”, many outdoor centers are embracing that feel with planning that is reminiscent of walking a neighborhood shopping area while enjoying the fresh air, well-maintained landscaping and inviting green spaces where people can gather or stop to rest.
Many of these shopping centers appear to reflect local architecture and character. This makes them more seamlessly inserted into the landscape of the area.
A family experience
Likewise, this mall layout lends itself to more of a family outing type of experience. Some complexes incorporate park-like settings that offer splash pads, outdoor gaming areas or spaces to congregate with the possibility of live entertainment such as music performances or outdoor movies. This variety of diversions in addition to goods and services increase the appeal of the visit. It may also prolong it, making it more profitable for the tenants and vendors.
Higher-end open-air complexes can integrate into the local community by providing easily accessible and well-maintained areas for community events and gathering places. In turn, the ability to provide a wide variety of entertainment offerings leads to many possibilities. For instance, immersive experiences, party facilities, and inventive experiential dining options.
This blend is a win for the consumers who can access their favorite services, goods and diversions. But it also is beneficial to the vendors. Foot traffic for any one business increases exposure and potential profit for any of its neighbors.
Rather than a centralized parking area, many open-air complexes allow guests to drive adjacent to the particular stores that they want to patronize. However, the open layout ensures that visitors will find other retailers and establishments easy to find and see as opposed to the traditional mall with distant parking.
The changing mall experience
In conclusion, the mall format still has many factors that make it attractive for businesses and retailers.
While there have been headlines for years about the “quick death of malls”, that really hasn’t proven true. Like in any business, some malls have found good success when analyzing the mix of offerings that appeal to today’s consumer and revitalizing the look and feel of their complex. Outdoor mall spaces continue to grow and perform well.
Overall, mall patrons today are seeking an integrative experience more than just a trip to a department store. Patrons are looking for an opportunity that is an experience. They can find attractive shopping options and varied dining and refreshment options. But they also want the environment to appeal to their sense of leisure and entertainment.
Indoor, or out, success is in finding that mix that will provide what guests are looking for in a variety of aspects.
