After the Mall
By Chadwick Matlin Posted Friday, December 26, 2008
Malls are a testament to the kind of consumer thinking that got us into this recessionary mess. And that’s why we need to close every single one of them.
Already, malls are in a considerable amount of trouble. Shopping centers on the block are selling for 25 percent to 35 percent less than they did just a year ago. Retail vacancies are on the rise; nationally, 6.6 percent of stores were empty in the third quarter of 2008, a 20 percent increase from the same quarter last year and the highest mark since 2002. Much of the pain is interwoven with the retail sector, where analysts estimate 148,000 stores will have been closed in 2008.
And it will only get worse. Mall stalwarts like KB Toys, Steve & Barry’s, and Linens ‘n Things are all closing shop. The recession is expected to rage on through 2009, and retail chains will probably be looking at dismal holiday numbers. A mall’s chief purpose these days is to be there come the holidays. Now that we’re beyond that season, many stores will need to shutter in the new year.
At the risk of getting Gladwellian, every store that closes has an impact on the shops left behind. Walking through a half-empty mall is an unsettling experience; it feels as dreadful as Dawn of the Dead, just without the zombies. Remember, malls are about escaping from the world and reveling in consumer fun. Spending money during the recession already requires a suspension of disbelief. Confronting an empty storefront is like walking right into a slap of harsh reality. Being reminded of that recessionary reality means you’re less likely to spend money at the surviving stores.
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