Shopping Malls: Unexpected Recovery in America

by Marcus Liu - Business Editor
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From Retail to Revival: How a Church is Breathing new Life into teh Dayton Mall

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The Dayton Mall, a shopping fixture in Dayton, Ohio since 1970, has faced the struggles common to many malls – increased vacancies, particularly after the 2018 closures of anchor stores Sears and Bon Ton. Currently in receivership, the mall found an unexpected path toward revitalization with the sale of its 162,000-square-foot former Sears space to local church Crossroads.

Crossroads has transformed 90,000 square feet of the space into a house of worship and community hub, maintaining a traditional indoor entrance to the rest of the mall. “Nothing says dying mall like having a church move in,” admits Dayton Mall marketing manager Rebecca Maguire, “But Crossroads has a huge following, and they are so community driven that I think any mall in the world would be lucky to have a partner like that.”

The decision wasn’t without internal debate for Crossroads. “People were asking, is chaining yourself to a mall wise?” said Pastor Matt Castleman. However, since celebrating its first services this easter, the church has drawn thousands to the once-struggling mall. Notably, the church keeps the complex open seven days a week during mall hours, attracting a diverse crowd.

“we have 400 to 500 people a week pop in who have no affiliation to the church,” Castleman noted, adding that teenagers frequently enough visit the food court and stores like Claire’s and Dick’s Sporting goods before or after services.

While Claire’s recent bankruptcy filing underscores the ongoing challenges for traditional mall tenants, the Dayton Mall’s experience highlights a growing trend: filling vacant anchor spaces with unique destinations to encourage “cross-shopping.”

The decline of the American mall – once a cornerstone of post-WWII suburbia – is well-documented, driven by changing demographics, shopping habits, and the rise of e-commerce. Though, recent data suggests a potential for rebirth.

stephen Lebovitz, CEO of CBL Properties, a major mall landlord, explains that repurposing empty anchors, a strategy gaining traction over the last decade, is finally yielding positive results. “We have had a rebound and built a lot of positive momentum. These projects to backfill anchors don’t happen overnight,” he said. Even as challenges remain, the Dayton mall’s story offers a glimpse into the innovative strategies reshaping the future of the American mall.

Malls Make a Comeback: How Bookstores, Experiences, and Nostalgia are Revitalizing Retail Spaces

For years, the narrative surrounding shopping malls has been one of decline, marked by store closures and changing consumer habits. However, a surprising resurgence is underway.Malls are adapting by embracing a new mix of tenants – including restaurants, movie theaters, and, notably, bookstores like Barnes & Noble – and tapping into a powerful sense of nostalgia to draw shoppers back. This shift is proving triumphant, with some malls experiencing increased foot traffic and a renewed sense of community.

The Evolving Mall Landscape

The traditional anchor store model – relying on large department stores like Macy’s and JCPenney – has faltered as those retailers have downsized or closed locations. Malls are now actively seeking diverse tenants to fill the void and create destinations that offer more than just shopping.According to a December 2024 report by CNBC, restaurants and entertainment options are playing a crucial role in attracting visitors. These experiential offerings provide reasons for people to spend time at the mall, even if they aren’t specifically seeking to purchase goods.

The “Barnes & Noble Effect”

Interestingly,Barnes & Noble is emerging as a particularly potent anchor tenant,even in malls where it isn’t formally designated as one. At the Coronado Centre mall in Albuquerque, New Mexico, Barnes & Noble accounted for 7.9% of all mall visits in 2024, surpassing both Macy’s and JCPenney in driving foot traffic. https://www.cnbc.com/2024/12/19/mall-restaurants-like-cheesecake-factory-eataly-help-to-draw-shoppers.html

Barnes & Noble currently operates approximately 660 stores across the United States, with 107 located within traditional enclosed malls. the company, which has experienced a successful turnaround, is actively pursuing further mall locations. Jason Stryker, head of real estate and development for Barnes & Noble, stated the company is considering adding 10 more enclosed mall locations this year and is exploring approximately a dozen vacant Forever 21 spaces. https://www.cnbc.com/2024/12/19/mall-restaurants-like-cheesecake-factory-eataly-help-to-draw-shoppers.html

The bookstore’s appeal lies in its size – typically ranging from 18,000 to 22,000 square feet – which allows it to occupy former anchor spaces while leaving room for a variety of smaller retailers. Stryker also emphasizes that Barnes & Noble doesn’t directly compete with other mall tenants, making it an attractive addition.

Beyond Retail: Community and Nostalgia

The revitalization of malls isn’t solely about attracting new stores. Developers are also recognizing the importance of creating community spaces. Some malls are hosting events,offering free Wi-Fi,and even welcoming unconventional tenants like churches. Such as, Crossroads Church operates within the Dayton Mall, providing a community hub alongside retail offerings.A significant factor driving the mall comeback is nostalgia. Dr. Vassilia Binensztok, a Florida-based mental health counselor, explains that for many Gen X and millennials, malls hold cherished memories from their youth.”Most Gen X and millennials spent their adolescent years making memories in malls – going to the food court with their friends, smelling all the lotions or perfumes at a store, or just generally hanging out chatting,” she said. “For many people, going to the mall can make them feel more like themselves as it evokes memories of those younger days.”

This emotional connection is proving to be a powerful draw, encouraging people to revisit malls not just for shopping, but for the experience and the feeling of connection to the past.

The Future of Malls

The transformation of malls is ongoing. Developers like Castleman are focused on bringing “life,business,money,and energy” back into these spaces. While the future of retail is undoubtedly evolving, the mall’s ability to adapt and offer a unique blend of shopping, entertainment, and community experiences suggests it will remain a relevant part of the american landscape. The key will be continuing to innovate and cater to the evolving needs and desires of consumers, leveraging both practical amenities and the powerful pull of nostalgia.

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