Tom Fisher Warns 25% of Malls Face Closure in Next Five Years

Minnesota is recognized for its extensive indoor malls, starting with Southdale Center, the country's first indoor mall opened in 1956 by the Dayton family. This innovation provided a shopping alternative suited to Minnesota's harsh weather conditions, featuring a unique design by architect Victor Gruen. In 1992, the Mall of America was established, marking a shift in how malls functioned, becoming destinations in their own right. However, the advent of online shopping has greatly impacted mall foot traffic. Research indicates that many traditional malls are struggling to survive in today's retail landscape, with projections suggesting that around 25% may close within the next five years. Experts like Tom Fisher from the University of Minnesota highlight the necessity for malls to evolve and provide experiences beyond shopping, targeting specific demographics including families and older populations. In response to these challenges, some malls are beginning to implement strategies to accommodate the increase in online shopping, such as featuring stores where customers can pick up online purchases or try products before buying. This evolution aims to keep malls relevant in a changing market, as traditional retail spaces adapt to meet modern consumer expectations. As shopping behavior shifts, malls that succeed will likely need to differentiate themselves and cater to the unique needs of various communities. The future may see a transformation in the mall experience, aligning with contemporary consumer demands and digital behavior.