Malls, the bastions of merchandising that for decades relied on fashion and food courts to entice shoppers, are losing their lids -- and not just in sunny Southern California.
Drive by some of the nation's newest retail attractions and it's clear that the conventional mall is declining in status.
Developers are tearing down or reconfiguring covered malls from Raleigh, N.C., to Columbus, Ohio, making room for outdoor centers that mix traditional retailers with big-box stores, high-density housing, stadium-style theaters, grocery stores and restaurants.
Malls have made the transition to "alls," open-air centers in Pasadena, Sherman Oaks and Long Beach. The trend continues in Torrance, Whittier and Huntington Beach, where developers hope to mimic the downtown experience that is missing from many suburban communities.
"Many people live in communities where there's not a main street where they can walk, window shop and meet people," said Ellen Greenberg, director of research at the Congress for the New Urbanism, a Chicago-based nonprofit organization that favors pedestrian-friendly neighborhoods with a mix of housing. "What we're learning is people value that and miss it, which is why it's being imitated in these lifestyle centers."
Competition from discount retailers and shopping centers is also contributing to the de-malling trend, according to experts, as is the appeal of the open-air center to exposure-hungry retailers seeking more spacious digs and harried shoppers who don't want to schlep through an entire mall to make a simple purchase.
"These days, you either go for the experience, like the Grove, or you go to Wal-Mart for the discount," said urban planner William Fulton, a senior scholar at the USC School of Policy, Planning and Development. "The regional mall is boring without bargains."
Although enclosed malls are not on the verge of vanishing -- they continue to average higher sales per square foot than their outdoor counterparts -- in recent years, more enclosed malls have been shuttered than have opened, according to a study by the International Council of Shopping Centers. From 2001 to 2003, more than 30 shopping centers, most of them enclosed, ceased functioning as malls, with many replaced by outdoor developments.
The study cited competition from newer centers, loss of anchor stores and changing demographics as reasons for redevelopment. The council does not track the performance of newer, open-air developments compared to the enclosed malls they replaced.
