US Likely to Lose 33% of Its Shopping Malls by 2021

US Likely to Lose 33% of Its Shopping Malls by 2021

The impact of COVID-19 on retail has been two-fold. Not only did social distancing and store closures cause a huge decrease in revenue for brick-and-mortar retailers, but it also drove more customers to embrace e-commerce and online shopping. 

Data from commerce insights shows that e-commerce revenue began surging in April, and as of July, is holding steady at just over 100% YoY increase. It's clear that, not only did retailers feel the pain of losing revenue, but they also lost a share of customers who, having been forced to embrace e-commerce, now prefer it. 

Brick-and-mortar retailers, especially those who rely on their shopping mall store locations as a primary channel for customer engagement, are particularly at risk to these changes in consumer shopping trends. Forecasts in this Forbes article predict a staggering increase in mall closures over the next few years. Some even expect “roughly 33% of America’s malls to go dark” by next year. 

What does this mean for retailers? Well, for omnichannel brands, the end of shopping malls is not a death sentence. E-commerce growth actually has positive implications. It means those brands will have an opportunity to engage more new customers online. 

Deliver the predictable,
profitable outcomes that your business demands

Learn more

Feature locked

Subscribe to unlock all features and insights

Subscribe Login