How to save malls? Kill the apparel store

Here's what needs to replace them

New York Weekend Edition /
Sep.September 16, 2017 01:15 PM

Bring back the movie theatres and bowling alleys! That’s the rallying cry from a new CBRE report that found “experiential” tenants, not clothing stores, were the way a struggling mall could turn a profit.

“The one thing that the Internet can’t compete with is in-person experiences,” said Melina Cordero, CBRE America’s head of retail research, to Commercial Observer.

In the last five years, restaurants saw sales rise by 35 percent while stores focused on home improvement grew by 25 percent, and health and wellness stores saw sales grow by 20 percent. In comparison, department store sales decreased by 15 percent despite accounting for almost 50 percent of the tenants in an average American mall. In August, The Real Deal looked at flagship stores, which experts said are likely to fare better than traditional bricks-and-mortar.

[Commercial Observer] — E.K. Hudson


Related Articles

arrow_forward_ios
North American Properties' Tim Perry; Nuveen's Nadir Settles; Taconic Partners' Chris Balestra and Ridge Hill at Yonkers (Flickr, iStock, NAP, Nuveen, Taconic Partners)
Developers snatch up Yonkers shopping center for $220M
Developers snatch up Yonkers shopping center for $220M
Jersey Mike's CEO Peter Cancro in front of 1500 Smithtown Avenue in Bohemia, Long Island (Jersey Mike's, Google Maps, iStock/Photo Illustration by Steven Dilakian for The Real Deal)
Sandwich chain Jersey Mike’s expanding in NY
Sandwich chain Jersey Mike’s expanding in NY
A photo illustration of Market by Macy's located at 321 State Street in Southlake, Texas (Google Maps, iStock)
Macy’s embracing smaller stores in department store shuffle
Macy’s embracing smaller stores in department store shuffle
Photo illustration of SL Green's Marc Holliday (iStock, Getty)
The sin I live in: Times Square looks to Las Vegas for inspiration
The sin I live in: Times Square looks to Las Vegas for inspiration
Retail landlord Jack Terzi and 240 East 54th Street (Jack Terzi)
Terzi owes $58M and counting on Midtown SoulCycle building: suit
Terzi owes $58M and counting on Midtown SoulCycle building: suit
Thor Equities' Joe Sitt and the retail condo at the base of 700 8th Avenue (Thor Equities, Google Maps)
Joe Sitt loses West Side retail space to foreclosure
Joe Sitt loses West Side retail space to foreclosure
ASG Equities' Raymond Gindo and George Karnoupakis with 472 86th Street in Bay Ridge (ASG, Getty)
Gindis finish assemblage to redevelop ex-Century 21 site
Gindis finish assemblage to redevelop ex-Century 21 site
UBS retail analyst Michael Lasser (LinkedIn, iStock, Illustration by Kevin Cifuentes for The Real Deal)
UBS predicts 50k store closures over 5 years in tick toward optimism
UBS predicts 50k store closures over 5 years in tick toward optimism
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...