Malls throughout the United States are falling prey to the same fast-changing dynamics brought on by the rise in online shopping and the unprecedented financial strains of a global pandemic.

The multistory department stores that have anchored malls for decades were in trouble before the coronavirus pandemic — and the pandemic has only exacerbated those retailers’ problems.

Restaurants — especially big, experiential concepts — were mall owners’ go-to tenants to drive foot traffic and fill space. Restaurant rows are the norm at most malls, and chains with massive footprints like Cheesecake Factory began eating up retail space.

Apparel stores take up more space than nearly any other type of mall tenant — and they are the most troubled category of retail. Like their big-box counterparts that anchor the mall, the small shops on the interior of the mall have been challenged for yearsy.

Theater chains have been decimated by the pandemic. Pre-pandemic, many mall owners were turning to entertainment concepts as new anchors — movie theaters, bowling alleys and adult arcades that can’t be replicated online and draw regular foot traffic to the properties.

Source: bizjournals.com (July 23, 2020)