The great American shopping mall is not the destination it once was. Overall foot traffic has been declining for years, and apparel store traffic hit its lowest mark in 17 weeks in mid-October, according to ShopperTrak data. Many mall-based retailers, including Abercrombie & Fitch, Aéropostale and American Eagle Outfitters, have closed or plan to close several stores by the year's end.
But the decline of the quintessentially American pastime of shopping at the mall isn't necessarily bad for business.
"People are still shopping; it's where they are shopping that is shifting," says Kurt Deneen, a senior consultant for Gallup. "Lifestyle centers, for example, are growing."
Deneen has a point. According to market data from the CCIM Institute, few new enclosed malls are being built in the U.S. Instead, real estate investors are acquiring property to build open-air lifestyle centers. These centers target an upscale, local demographic and tend to include gyms and cinemas. The village-like setting of lifestyle centers -- with convenient access to entertainment, food, fitness and shopping -- attracts today's shoppers.
"These lifestyle centers are enticing because they make shopping feel local. It's easy to park, purchase and get out: speed shopping," Deneen says.
While fewer people are shopping at the mall, online transactions are taking off. Mobile purchases are expected to grow 800% by 2015, according to data compiled by Bloomberg.
"In the past, stores offered access to goods you couldn't get on your own at prices that benefited consumers because the retailers bought in bulk," says Ed O'Boyle, Gallup's global practice leader. "But today, it's just as easy to buy directly from the producer."
And why shop exclusively with a specific retailer when there are so many choices out there? Stores can seem boring compared with online sites that offer interactive user experiences -- and stores offer few advantages other than the ability to try something on, says O'Boyle.
"So unless you are a teen desperate to get out of the house, malls just aren't that appealing anymore," O'Boyle says.
