If you look at the world 100 years ago from the day you are reading this article, humanity has come along way. We went from horses pushing carriages to more than half of the population owning a car and having countless shopping options. We can now buy anything we want at the push of a button, even food.
Much like the invention of the train in the 1804, shopping malls were a sign of human advancement. There was a reason why shopping malls were invented, a very important reason that has to do with one of our human needs.
So the question is why are malls closing all over America. What happened?
According to Business Insider many retailers have said that there will be over 8,600 closings. Also by 2022 about 25% of shopping malls will be closed. So lets say a state like New York that has about 57 malls in the entire state, 14 of those malls will close down. That might not sound like a lot but if you think about it, it adds up to large numbers when it starts to happen all over America. That will create many job losses.
But before we get to “why malls are closing and failing” lets find out how malls came to be.
Why were malls invented
It started in the 1950s and 1960s. Many people realized that suburban America lacked social spaces, meaning, places to “hang out” at.
4 types of places
- Home
- School (middle school, high school, college)
- Work
- Social Spaces
There was a lack of social spaces back then. As to what people did for the lack of social spaces back then, that will require a whole lot more research which will not be covered here. The man who came up with the idea for the mall was a man called Victor Gruen. He started the first mall in 1956 Southdale Center, Edina Minnesota. It was a place were people could leave their home and go shopping, take the kids out, go to a nice restaurant. You get the point.
Ever since then, thousands of malls opened all over American and throughout the world.
The Reason Why Malls Are Closing Everywhere
Remember the recession in 2008 and 2009. I know because I was going to college back then. It was horrible. Obama got elected for President and finding a job was like trying to find a needle in a field of grass. I worked odd jobs but I didn’t find a real job until 2011.
During the economic crash in 2008, many malls started closing because hey, no jobs, no one is spending money, right. After 2008, many people started to change their shopping habits. Many people stopped shopping for “things” and decided to start spending money on experiences.
People learned after that recession. They started to find ways to spend less while still enjoying their lives. There also more information on how to be frugal thank to the internet. In the economic crashes of the 1980s and 1990s, people did not have much of a choice. They had to wait for things to get better or be creative in the way they made their money without a job (legally that is).
Online sales dominate
If you go to Amazon.com you will be able to find the same item you can find at a retail store for a much lower price. With online shopping there are countless options and many times, you dont have to go out anywhere to find what you want. Is all at your finger tips.
People’s shopping habits have changed. They go online to buy what they want and they use the mall as a hang out place. Restaurants do really well at the mall. The cafeterias at the mall do really well, however, the retail stores not so good because of online shopping.
There has been a hit on apparel. People now buy clothes online which is something that was not common. However, with all the discounts online, people don’t mind having to send an item back to Amazon once or twice.
So if people are not spending their hard earn money at the mall then retailers don’t have much money to pay the rent, keep the lights on and pay employees. You can say that it is the beginning of the death of the american shopping mall
How to bring back Shopping Malls
Andy Arts TV is located in Connecticut, USA. One of the things that we have noticed about Connecticut malls is that Dave and Busters has two locations in two malls. The Hartford mall and the Milford mall. Connecticut shopping malls are adding more entertainment.
Because most people go to the mall to “hang out” with friends and family (get out of the house and walk around) then why not have more entertainment at the mall and less retail. Lets face it, most people don’t go to the mall to shop anymore. Especially in areas where there are four seasons like in the north east of USA, people spend a lot of time at home in the winter time.
Imagine that. Its winter time or autumn. It gets cold outside so you cant go out much unless you have a car. What do people do? Go to their friends house or invite people over. They go to the bar or club to meet people or hang out with friends. They are looking for something to do, they are looking for entertainment.
So why not have more entertainment at the mall. Here is a list of things that malls can start adding to their halls for attraction.
Arcades (Dave and Busters)
Barcade
Paint Bars
Photo Booths
A small Aquarium
Bowling allies
Bumper Cars
Concerts area
Spas
Mini Golf
Stand up comedy bars
LEGO houses
3D Rides
People will always want more and more entertainment. Now they have more of a reason to get out of the house. People might not have money to buy a pair of $50 jeans but they will have an extra $20 to spend at the arcade. Get it.
Make the mall a place for fun and to mingle with people. It will be more profitable and will keep people coming back. If people think, “oh I am broke I cant go to the mall,” but with these changes they can change their mind and say, “oh wait, there are a lot of other fun things to do at the mall. Maybe I can bring an extra $10 bucks.” Get it.
And that is how we can save the American malls from closing. 50% retail and 50% entertainment.
