Discover how brands like Netflix, Shein, and Skims are revitalizing malls, blending digital and physical experiences. Explore the trends reshaping retail and enhancing the shopping environment
Malls, once struggling, are making a comeback as foot traffic returns to pre-COVID-19 levels. According to Placer.ai’s The Comeback of the Mall in 2024 report, indoor shopping mall visits were only down 5.8% in 2023 compared to 2019, a significant improvement from the 15.3% decline in 2021. This recovery is powered by a mix of innovative brands and attractions that serve to modern consumers.
Breaking the Mold:
Traditionally, retail stores dominated malls, but now, experiences and dining options play an important role in attracting visitors, as highlighted in Placer.ai’s report. Netflix is leading the charge by planning to open two physical locations in 2025, including one at the King of Prussia Mall in Pennsylvania. These spaces will offer more than just shopping, featuring a theater, amusement rooms, dining areas, and retail space.
Retail Reimagined:
Brands are shaking up the traditional mall model by experimenting with short-term leases and pop-up events. Shein, for instance, has hosted successful pop-up shops in US malls, drawing similar crowds to holiday shopping peaks. Similarly, Rent the Runway is testing the waters with pop-up events like the sample sale at the Mall of America.
Appealing to Gen Z:
Skims, Kim Kardashian’s shapewear brand, is expanding its physical presence with new stores in outdoor shopping plazas like Austin’s Domain Northside and potentially Atlanta’s Lenox Square Mall. This move targets Gen Z shoppers, with nearly half of 18- to 24-year-olds having a favorable opinion of the brand, according to CivicScience.
Thinking Big:
Ikea is taking a different approach by acquiring and revitalizing multiple US malls, as reported by Fortune. These malls, featuring smaller Ikea stores, also offer amenities like food courts, coworking spaces, and play areas for children. This strategy aims to enhance the overall mall experience.
Conclusion:
While traditional mall retailers are venturing beyond mall confines, brands like Netflix, Shein, and Skims are injecting new life into these spaces. By focusing on engaging experiences and catering to younger demographics, they are reshaping the mall environment and proving that brick-and-mortar retail still has a place in the digital age.
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