Deep Dive 15 minutes Premium

Deep Dive: The Mall Is Not Dead: Part 1

Executive Summary

Traffic Is Down, but Malls Are Still a Fixture

This is the first report in a three-part series in which Fung Global Retail & Technology analyzes the US mall landscape.

  • There are 1,221 malls in the US today, according to the International Council of Shopping Centers (ICSC). The number of malls increased by more than 300% from 1970 to 2015. Given the oversaturation of malls in the US, we believe that at least 30% of malls—mostly within the C and D classifications—need to be closed.
  • Malls classified as A properties are the most productive: they account for only 20% of all malls, yet represent 72% of total mall sales.
  • Even though retail traffic at malls has declined, retailers such as Tesla Motors and Apple are choosing to locate stores in malls in order to expose their brands to meaningful traffic.
  • The top 10 malls in the US see average sales per square foot of over $1,000. Four of these malls are located in Florida and two are in New Hampshire, which has no sales tax. Two are in tourist locations and two are outlet malls.
  • Other reports in this series will analyze department stores in malls, trends impacting malls, malls’ evolution and store concepts that are expanding.

 

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