Who said malls are dead? Well, plenty of people. A 2015 New York Times piece explored the economic phenomenon of dying malls. There's even a website devoted to the term "dead malls." The United States has "twice as much per-capita retail space as any other country in the world," said retail analyst Jan Kniffen. At a time when commerce is moving online, traffic in malls is decreasing drastically. But according to the International Council of Shopping Centers (ICSC), that's not the whole story. It reported fourth quarter 2015 shopping center occupancy rates of 93.2 percent - the highest year-end data since 2007 - and rates were up to 93.5 percent in the first quarter of 2016. Consumers are changing, in both their demographics and their expectations for a shopping experience. Some shopping centers aren't keeping up, but the most successful malls are evolving right alongside their shoppers. Here are three ways they're staying relevant.

1. © 2016 CIT Group Inc. CIT and the CIT logo are registered service marks of CIT Group Inc.
No, Actually Malls Aren’t Dead:
3 Reasons Why
For more articles like this, visit:
cit.com/knowledgecenter
Want to know what’s happening on the cutting edge
of San Francisco’s retail-tech scene? Go to the mall.
Seriously.
Inside Westfield San Francisco Centre, neighboring
Bloomingdale’s and Nordstrom, is Bespoke, a retail-
tech co-working, events and demo community that
hosts startups and big brands alike. In addition to the
quintessential tech industry lifestyle amenities like bocce
ball and a bouldering wall, Bespoke offers 24-hour work
spaces, chic sleep nooks, and shared and private offices.
And here’s the retail twist: The conference rooms convert
into mall-facing pop-up shops.
Who said malls are dead? Well, plenty of people. A
2015 New York Times piece explored the economic
phenomenon of dying malls. There’s even a website
devoted to the term “dead malls.” The United States
has “twice as much per-capita retail space as any other
place in the world,” said retail analyst Jan Kniffen. At a
time when commerce is moving online, traffic in malls is
decreasing drastically.
But according to the International Council of Shopping
Centers (ICSC), that’s not the whole story. It reported
fourth quarter 2015 shopping center occupancy rates of
93.2 percent – the highest year-end data since 2007 —
and rates were up to 93.5 percent in the first quarter of
2016.
Consumers are changing, in both their demographics
and their expectations for a shopping experience.
Some shopping centers aren’t keeping up, but the
most successful malls are evolving right alongside their
shoppers. Here are three ways they’re staying relevant.
1. Embracing Omnichannel
Technology is undeniably at the heart of changes in
consumers’ expectations. That’s a good thing, according
to ICSC President and CEO Tom McGee.
That convergence is known as the omnichannel
environment, where a retailer’s digital locations and
physical stores are simply two sides of the same
experience.
“What malls need to do now is to combine the ease of
the digital shopping experience and the interactive wow
factor that can only be experienced in-store to create
a seamless shopper journey that’s exciting and one-
“Despite some of the hyperbole around
‘brick versus click,’ what’s really happening
is a convergence is taking place.”
by Natalie Burg

2. © 2016 CIT Group Inc. CIT and the CIT logo are registered service marks of CIT Group Inc.
No, Actually Malls Aren’t Dead: 3 Reasons Why
2
For more articles like this, visit:
cit.com/knowledgecenter
of-a-kind,” said Marc Heller, president, CIT Commercial
Services, one of the nation’s leading financing solution
providers to consumer product companies.
Bespoke is a product of that mindset. The retail-tech
community was hatched in Westfield Labs, an arm of
Westfield Corp., which operates 34 shopping centers
around the globe.
In addition to Bespoke, Westfield Labs has launched
Dine on Time, a mobile app for ordering takeout or
delivery from restaurants at the San Francisco shopping
center, as well as Express Parking, which uses radio-
frequency identification (RFID) tags in cars and the
Westfield mobile app or website to expedite parking
payments. By leveraging technology, the hassle of
navigating and finding the merchandise shoppers want
is reduced, making the mall shopping experience more
appealing.
And although technology infrastructure isn’t the sexiest
or even the most visible item on a mall’s amenity list,
McGee says sufficient connectivity and interactive
elements like near-field beacon technology are critical
to the omnichannel experience. That includes everything
from allowing shoppers to send Snapchats of outfits
they’re trying on to friends, to sending in-store alerts
about deals to visitors through beacons.
2. Creating Experiential Places
What makes those Snapchat moments and mobile
food delivery options valuable are the experiences
they provide. And live, engaging experiences are what
differentiates successful shopping centers today, said
McGee.
It’s also why so many malls now offer amenities never
imagined decades ago. The Galleria in Houston
includes a full-sized ice rink and two swimming pools.
Ala Moana Center in Hawaii features an amphitheater
with more than 800 performances a year. The
forthcoming, 38-acre Shanghai DreamCenter will include
a performance theater, music venues and a 500-seat
IMAX Cineplex. Alberta, Canada’s West Edmonton Mall
includes roller coasters, a water park and an aquarium
with more than 100 species of marine life. None of which
can be replicated online. And that’s the point.
3. Tailoring To Their Communities
Shoppers inside a mall 20 years ago might not have
been able to tell if they were in Pennsylvania, California
or Wisconsin. Not anymore. Shopping centers today are
tailoring their experiences and amenities to their local
communities, a trend that extends to the shops, restaurants
and other amenities within the mall.
“It’s reflective of our times,” McGee said. “We’ve become
accustomed to having tailored experiences in most aspects
of our life.”
Could there be a more San Francisco-esque mall tenant
than the Bespoke co-working community? Or consider
The Grove of Los Angeles, which offers luxury concierge
services and lithium battery trolley to shuttle shoppers
from the nearby farmers market, all befitting the famed
L.A. lifestyle. Among Ala Moana Center’s performances
is a daily hula show. That wouldn’t quite fit in a place like
Maine.
Although the personalized mall experience may be
accelerating, McGee considers the trend a realization of a
longtime goal of shopping centers.
“It really is what it was always meant to be,” he said, “which
is a microcosm of the needs of an individual community.”
It’s no wonder those communities are returning to the
malls, where they’re finding customized, omnichannel retail
experiences that don’t exist anywhere else.
A former downtown development professional, Natalie Burg is
a freelancer who writes about growth, entrepreneurialism and
innovation.
“We all live in a technological age,” said
McGee, “and coming to a shopping center
represents an opportunity to engage with
other people in a social setting in a very
experiential manner.”