Re:Malls Aren't Dying, They're Thriving
by Retric on Monday June 08, 2015 @11:19PM
(#9683901)
"Does that sound like something that's dying?"
Yes, plenty of malls try the entertainment idea before failing, the issue is entertainment takes far longer than a store. So you end up far lower foot traffic levels which kills off the nitch stores that pay the most rent per squre foot. Without those high rent store the mall can't afford enough matence to keep the place pristeen which ends up driving away the big spenders starting the final death spiral.
In the end it's simple math, middle class incomes have been stagnate for more than a generation and people are doing far more online retail which means less leftover for malls.
Yes, plenty of malls try the entertainment idea before failing, the issue is entertainment takes far longer than a store. So you end up far lower foot traffic levels which kills off the nitch stores that pay the most rent per squre foot. Without those high rent store the mall can't afford enough matence to keep the place pristeen which ends up driving away the big spenders starting the final death spiral.
In the end it's simple math, middle class incomes have been stagnate for more than a generation and people are doing far more online retail which means less leftover for malls.