The Future of American Malls: From Lockdown to Rebirth
The future of American malls is inextricably linked with the events of recent years, especially the COVID-19 pandemic and the rise of online retailers. Michigan, for instance, serves as a prime example of how malls have struggled. Governor's lockdowns and the expansion of online suppliers into niche markets sent the demand for physical shopping plummeting. As a result, many malls now suffer from high crime rates, which has further deterred foot traffic.
Given these challenges, it's crucial to explore potential solutions for revitalizing malls. For starters, addressing the issue of crime by enforcing strict laws to deter and prosecute shoplifters and other offenders could significantly improve the perceived safety of these establishments. Clearing out drug dealers and gangs, and establishing a robust security patrol system for the lots, could also encourage people to return to shopping.
Retail in general has shifted towards an omnichannel approach, integrating online and offline shopping experiences. Customers now have the ability to pull up information on their smartphones, compare prices, and read product reviews while physically visiting stores. This integration of digital and physical shopping experiences has been pivotal in the new market dynamics. However, the traditional mall model has struggled to compete effectively against giants like Amazon. Many mall retailers have had to file for bankruptcy, with their physical storefronts being acquired by Amazon for use as e-commerce fulfillment centers.
Adapting to the New Retail Landscape
Given the shift in retail trends, the future of American malls will likely look quite different. Smaller, more personalized malls will emerge, or, for larger spaces, they will serve as warehouses for savvy retailers to store and ship products, or as pickup centers for online orders. This reimagined model balances the convenience of in-person shopping with the efficiency and reach of e-commerce.
In line with these trends, top-tier malls are expected to benefit more, while lower-tier malls may need to close or be repurposed. Malls will need to offer amenities beyond just shops, such as restaurants, movie theaters, spas, office space, and direct connections to hotels. These amenities can cater to the changing needs of consumers who can now do their shopping largely online.
Challenges and Opportunities
One of the most pressing challenges facing American malls is the closure of many stores and possible makeshift housing for the homeless. Credit Suisse estimates that a record 8600 stores will close this year. Moreover, the fastest-growing segment of the homeless population is families with children, comprising 41% of the homeless population. This presents a unique opportunity to repurpose malls into shelters, providing much-needed housing solutions.
Innovative Solutions
To address the issues of crime and create a sustainable model for malls, advanced agricultural techniques are being explored. Greenhouses utilizing methods pioneered by PlantLab and other agricultural innovators in the Netherlands could transform parts of malls into productive spaces. These facilities could serve not only as unique retail spaces but also as centers for cultivating fresh produce, enhancing the overall ecosystem of the mall.
In conclusion, the future of American malls is evolving. By addressing safety concerns, adapting to new retail trends, and considering innovative solutions like repurposing and agricultural integration, malls can continue to thrive in an ever-changing retail landscape.