Report: The 5 Factors That Will Be the 'Death of the American Mall'

Tripp Whetsell, Bisnow NY

Retailers struggled mightily during Q3, posting poor quarterly earnings. Macy's, in particular, took a big hit: once news hit, the retail giant's stock plunged, wiping out over $2B in market value in just 24 hours.

And if big-box retailers are any indication, malls could be headed for the scrap heap, MarketWatch reports. According to the report, the recent trend is more than just a downturn but an industry on its last legs. Here are the five culprits that will eventually lead to the "death of the American mall."

1. Going to the mall as a destination isn’t a necessity anymore.

2. Traditional malls were built so that at each end of the mall a big-box “anchor store” was placed, but this is no longer happening.

3. Using the Internet, consumers can now get the best prices for nearly any type of product and shipping's usually free.

4. Buying apparel on a seasonal basis is more difficult because of uncertainty in weather patterns.

5. The popularity of premium outlet centers is making the traditional mall obsolete. 

According to the forecast, unless malls can "reinvigorate their properties" or boost them with casual dining or amenities, the mall—as we know it—could be coming to an end. [MW]

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Related Topics: Big box retailers , Macy's , Retail market
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