U.S. malls are rebounding, report shows

Mall traffic, revenue growth overview: 

• Who: Coresight Research has released a market analysis report on American malls in pre-pandemic times. 
• Why: The report found malls are rebounding from pandemic-related restrictions, with top-tier malls performing particularly well. 
• Where: Nationwide. 

Mall retail sales grew by more than 11% last year with almost $819 billion in total revenue, according to a recent market analysis report from Coresight Research. 

The report found that occupancy rates at top-tier malls — which are defined as featuring luxury retailers and newer brands and being in more affluent areas — were 95.1% last year, nearly matching pre-pandemic levels. 

Non-top-tier malls reportedly are not performing as well as top-tier malls with occupancy rates, however, with rates below pre-pandemic levels more significantly. 

Foot traffic at top-tier malls was up 12% on average last year as compared to 2019 pre-pandemic levels, while traffic at non-top-tier malls was up 10% over the same time period, according to the mall revenue report. 

“Since the lifting of restrictions and consumers’ gradual return to more normal ways of living, physical retail has bounced back, with 2022 seeing Coresight Research track more store openings than closures for the first time since 2016,” the firm states. 

Top-tier malls outperforming ‘average’ malls in terms of revenue, foot traffic, occupancy, report says

Overall, the mall traffic report found top-tier malls are outperforming the “average” mall in terms of revenues, occupancy rates and foot traffic. 

Coresight noted how, going forward, physical retail can combine with e-commerce to produce a “halo effect” for brands that would be able to “drive sales, reduce customer acquisition costs, improve margins and meet evolving consumer demand.” 

“We expect that the rise of both retailers’ and mall operators’ omnichannel strategies and investments will disproportionately benefit the future growth of top-tier malls,” the firm states. 

The easing and lifting of both domestic and international pandemic-related travel restrictions has also played a role in an increase in mall shopping, according to the report, which attributed it to consumers “releasing pent-up desire to travel and shop.” 

Growth at top-tier malls was reportedly driven by long-distance visitors — defined as someone who lives more than 100 miles away from the mall — due to them serving as destinations that attract both domestic and international travelers. 

“As non-top-tier malls are not destinations, Coresight Research expects the format to see growth in long-distance visitors slow in 2023 and beyond,” the firm states.

In other news involving sales, consumers have recently filed a number of class action lawsuits against companies accused of misleading customers into thinking they are getting a larger discount than they actually are on “for sale” items. 

Have you shopped at a mall recently? Let us know in the comments. 

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