Experts interviewed by Retail TouchPoints for a report posted Friday (Dec. 26) said malls are attracting these under-30 shoppers by offering more than the traditional combination of stores and a food court.
For example, malls have found success by providing experiences like dining, entertainment and events; hosting sporting activities and pop-up branded experiences; and adding mixed-use elements such as co-working spaces and gyms, according to the report.
Some malls are complementing eCommerce by providing spaces for returns, click-and-collect or micro-warehouses; offering things online shopping can’t, including the ability to touch and feel products and try them on; or delivering relevant services and experiences such as tutorials, product demos and celebrity appearances, per the report.
It was reported Dec. 23 that Tanger’s outlet centers saw full parking lots and steady activity throughout November and December because their retailers offered promotions to meet holiday shoppers’ demand for value.
“Retailers are discounting to meet the consumer, and the consumer is responding by shopping,” Tanger CEO Stephen Yalof told CNBC.
Mastercard SpendingPulse said consumers shopped across channels, including both online and in-store, during the holiday season in pursuit of the best promotions and maximum convenience.
Visa Consulting and Analytics said 73% of holiday payment volume originated in physical stores, compared to 27% online.
Global retail expert and strategic adviser Paco Underhill told PYMNTS last January that malls can remain relevant by moving away from traditional retail spaces to more experiential destinations.
Malls are experimenting with different types of tenants, including entertainment venues, food courts and experiential retail, and seeing them thrive, Underhill said.
PYMNTS reported in May 2024 that the largest shopping center in North America, Mall of America, was meeting shoppers’ demand for unique, site-specific experiences by adding an on-site game-show-style amusement center where consumers play the sorts of games they may see broadcast on TV.
Real estate investment trust Simon Property Group said in November 2024 that malls were regaining relevance as younger consumers discovered the value of these facilities.
“The mall continues to be a unique gathering place,” David Simon, CEO of Simon Property Group, said at the time during an earnings call. “We’re seeing a rejuvenation of the younger consumers wanting to hang out at the mall.”
