As online shopping increases daily, citizens are noticing the repercussions of physical stores more and more. And one clear evidence of this is the massive closure of shopping malls. The data are worrying: experts estimate that, in the next decade, there will be barely 150 shopping malls left if the number of closures continues like this. It is worth noting that in the 1980s, the number of shopping centers was 2,500, while today, it has fallen to around 700.
Nowadays, nothing is more convenient than shopping from the sofa at home. Internet shopping has carved out a big niche in the market, and the more it fills that gap, the less space physical shopping malls have to stay open. It has been like a virus that sweeps away everything it catches. As online shopping increases, malls are closing by the hundreds.
The decline of shopping malls
That is how experts estimate that in just ten years, we will go from around 700 shopping malls to only 150 if the situation does not stabilize. Shopping malls in the United States have historically been the most popular places for customers to shop and spend their leisure time. The advent of new technologies has been changing this scenario. The years have gone by until the current worrying situation is reached.
The decline worsened with the arrival of the Covid-19 pandemic. As so many establishments remained closed for months, more than a few went bankrupt. Experts estimated, in the past year, 2020, there will be a 25% drop in at least 1000 shopping centers in the country over the next 3 to 5 years. In fact, by 2027, 40,000 to 50,000 retail stores are expected to close.
Shopping malls in danger of extinction
It has been shown that consumers prefer convenience above all else. They would rather shop at home or nearby stores than go to shopping malls. Old habits are being lost, especially when people devote much of their leisure time to their favorite shopping mall with family, friends, or partners on weekends.
The decline and closure of hundreds of shopping malls in the United States seem inevitable. However, there is still time to change course. If they can redirect their marketing strategy and get consumers’ attention again through offers, shows, etc., they will succeed.