Welcome to the bloggy home of Noah Brier. I'm the co-founder of Percolate and general internet tinkerer. This site is about media, culture, technology, and randomness. It's been around since 2004 (I'm pretty sure). Feel free to get in touch. Get in touch.

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What’s happening to malls?

Interesting perspective (and data) on the effect of online retailing and the general environment on malls:

I agree with the above perspectives, although I believe they likely understate the eventual impact on malls.  A report from Co-Star observes that there are more than 200 malls with over 250,000 square feet that have vacancy rates of 35% or higher, a “clear marker for shopping center distress.”  These malls are becoming ghost towns.  They are not viable now and will only get less so as online continues to steal retail sales from brick-and-mortar stores.  Continued bankruptcies among historic mall anchors will increase the pressure on these marginal malls, as will store closures from retailers working to optimize their business.  Hundreds of malls will soon need to be repurposed or demolished.  Strong malls will stay strong for a while, as retailers are willing to pay for traffic and customers from failed malls seek offline alternatives, but even they stand in the path of the shift of retail spending from offline to online.

Living in New York it’s easy to forget the importance of malls in retail. Haven’t ever completely understood why that is exactly, but the malls in New York (the only two I can think of off the top of my head are South Street Seaport and Herald Square) feel like afterthoughts and are filled with stores that feel out of place in an otherwise retail-hungry city.

December 24, 2012 // This post is about: , , , , ,

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