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THEMALLIS
DEADWho Killed It, Why It’s Not Coming 

Back and What’s Next for Retail
Lookslikesomethingfrom

TheWalkingDead,right?
Themaindifference

betweenthismalland

TheWalkingDead...
The mall

isn’t coming 

back to life.
Let’s see what we learn 

from examining the body.
Let’s see what we learn 

from examining the body.
First, we’ll check the 

vital signs, just to be sure 

the mall is really dead.
400+
MALLS
Source: Yahoo! Finance
were repurposed or closed 

outright in last decade
Source: Yahoo! Finance
No new enclosed malls
have opened since
2006
Green Street Advisors, June 2012
10%of the 1,000 malls
in the U.S. will
FAILin next 10 years
ARE MALLS OVER?
AMERICA’S ABANDONED
MALLS ARE PLACES OF
NIGHTMARES
-BEAUTIFUL DECAY
NORTHTOWNE SQUARE MALL FIRST TOLEDO
MALL TO JOIN “DEAD MALLS OF AMERICA”
-EXAMINER.COM
Yep, things are
NOTLOOKINGGOOD
for shopping malls.
(But it wasn’t always this way...)
Yep, things are
NOTLOOKINGGOOD
for shopping malls.
Sales / occupancy rates at 

malls are stagnant; only fortress 

malls continue to thrive
2009
More than 60 new malls
larger than 400,000
square feet open in U.S.
80s–90s
First enclosed regional
mall, Southdale Center,
opens in Edina, MN
1956
First megamall opens 

in Alberta, Canada with 

over 800 stores
1981
Mall of America opens 

with more than 35 million
visitors in the first year
1992
FORTRESSMALLS
are still succeeding due to population
growth, a desirable tenant mix,
sophistication of nearby residents, 

and high-end amenities offered.
Some
In 2012, these two fortress malls
surpassed $1 billion in sales!
South Coast Plaza
Costa Mesa, CA
2.8 million sq. ft.
Northpark Center
Dallas, TX
2 million sq. ft.
So, who is to blame 

for killing the traditional
shopping mall?
GEN Y
Approximately
80MILLION18-to35-year-oldsliving
intheUnitedStates
That’s more than
25%of U.S. population
In 2013,
millennials
spent about
$600
BILLION
In 2013,
millennials
spent about
By 2020, 

millennial 

retail spending 

could hit
$1.4
TRILLION
$600
BILLION
What was Gen Y’s

MOTIVE?
Malls weren’t meeting their 

LISTOFDEMANDS
Walkability
UrbanFeelWalkability
UrbanFeel
Local

Restaurants
Walkability
Unique

Experiences
UrbanFeelWalkability
Local

Restaurants
Source: ArchPoint Consulting
of millennials say

customer service is

very important
48%
of millennials demand 

an integrated, seamless
shopping experience,
regardless of channel.68%
Source: Accenture
Online shopping offers a wider
selection, better prices and 

access to more information.
Naturally, malls are 

struggling to keep up.
Amazon’s five-year 

average ROI is
17%whereas traditional 

retailers average 6.5%
During the 2013 holiday shopping 

season, U.S. retailers received roughly
HALFof the holiday foot traffic they 

experienced three years prior.
In 2014, it is forecasted that 

online sales will account for
9%of total U.S. retail sales.
This will likely increase to
11%of total U.S. retail sales by 2018.
Source: ArchPoint Consulting
80%of millennials want 

brands to entertain and 

delight them during their 

shopping experience
Don’t write off these new, 

higher expectations as
MILLENNIALS
BEING
MILLENNIALS*
* Millennials are stereotypically assumed to be spoiled, demanding, etc.
MILLENNIALS
BEING
MILLENNIALS*
Don’t write off these new, 

higher expectations as
This evolution within the retail
industry extends beyond adults
ages 18 to 35. There is a
NEWCLASSOF
CONSUMERS
They expect 

a new kind 

of shopping
experience 

that has…
Walkability
Experiences Connectivity
and they are going to get it.
The new-class consumer 

provides instant feedback. 

She posts pictures of what 

she likes on Instagram and 

complains on Twitter about 

bad customer service. She 

spends money in places 

where she enjoys being. 

The smart retailers are 

taking this feedback and 

evolving their visions and 

merchandising strategies.
!
Liz Gillespie
VP Marketing
North American Properties
Top retailers
GETIT
We've had a real 

estate strategy of not 

bundling or taking 

weaker malls, and 

we go to [lifestyle] 

centers… which allow 

us to really drive our

business through 

community.
Christine M. Day
Lululemon Athletica
Former President and CEO
We rarely do malls. Our preference is to be on the
street. In a suburban market, we want to be in a
village atmosphere that has pedestrian as well as
vehicular traffic.
!
Wade McDevitt
Representative for Anthropologie
And they aren’t alone. 

Countless restaurants and 

retailers are choosing this…
Alpharetta, GA
Instead of this…
Image of
rundown mall
Some brands 

are leaving 

their current 

Alpharetta 

locations and
relocating 

to Avalon.
Others are
completely 

new to the 

market and 

chose Avalon 

for their 

first location.
L O U G R E Y
And they aren’t alone. 

Research shows that top brands and 

up-and-comers, alike, are moving
AWAYFROMMALLS
2 STORES OPENED THIS YEAR 

4 MORE OPENING
The Woodlands in The Woodlands, Texas 

(Lifestyle Center / March 2014)
Shops Around Lenox in Atlanta, Georgia

(Open-Air Center / May 2014)
University Park Village in Fort Worth, Texas 

(Lifestyle Center / Summer 2014)
The Summit in Birmingham, Alabama 

(Lifestyle Center / Fall 2014)
Avalon in Alpharetta, Georgia 

(Mixed-Use / Fall 2014)
Classen Curve in Oklahoma City, Oklahoma

(Mixed-Use / Fall 2014)
3 STORES ANNOUNCED 

TO OPEN THIS YEAR
Belvedere Street in Tiburon, California

(Standalone / June 2014)
North Hills in Raleigh, North Carolina

(Lifestyle Center / June 2014)
Avalon in Alpharetta, Georgia 

(Mixed-Use / Fall 2014)
Planning to open another 5-10 before
the year’s end; haven’t announced
where or when
78 FREESTANDING STORES
The McLaughlins seek buildings with 

character on street locations, occasionally 

open in lifestyle centers, and shun malls.
“Frankly, the mall atmosphere diminishes
the brand.” – Kevin McLaughlin
Top developers and operators
GETIT
THE GROVE’S 

AWARD-WINNING
CONCIERGE
SERVICES
Personal shopping
Dining reservations
Package check
Store, area and 

tourism information
Foreign language 

assistance
Events and activity 

assistance
The Grove Gift Cards 

by American Express
ONE OF THE BIGGEST
TOURIST ATTRACTIONS 

IN CALIFORNIA WITH
18+ MILLION
VISITORS PER YEAR
THAT’S MORE THAN
DISNEYLAND!
THE AMERICANA 

AT BRAND’S
CONCIERGE
SERVICES
Bellman service, 

package assistance,
package check
Restaurant and travel
reservations
Assistance with 

concert/event tickets
Postage, mail, shipping
and delivery assistance
Gift giving and 

shopping assistance
Gift cards by 

American Express
THE AMERICANA 

AT BRAND HAS
16+ MILLION
VISITORS PER YEAR
GENERATES ANNUAL
SALES OF $1,100 PER 

SQUARE FOOT OUT 

OF ITS 70 STORES
And…
The Southeast’s preeminent 

experiential development – a place
where resort-inspired hospitality, specialty
retail, entertainment, restaurants,
residences, offices, hotels and public
spaces come together to create a
truly unique experience. 
60+leases signed with
Avalon in the past year
97%leased when Avalon was
still 6 months away from
grand opening
Consumers are
ENGAGED
Their feedback is not only
plentiful, but positive as well.
RETWEETS 624
MENTIONS 3,375
REACH 17.8M
PAGEIMPRESSIONS 1.2M
POSTIMPRESSIONS 678K
ENGAGEMENT 40K
MEDIABUZZ
$600M MIXED-USE DEVELOPMENT IN ATLANTA
SUBURB GETS GREEN LIGHT
—COMMERCIAL PROPERTY EXECUTIVE
ALPHARETTA’S AVALON
PROJECT SNAGS 1ST TENANT
—ATLANTA BUSINESS CHRONICLE
One of Atlanta’s
Hottest
Restaurant
Groups Signs 

at Avalon

— North American Properties
“ALPHARETTA’S AVALON IS
DRAWING IN-TOWN RESTAURANT,
RETAILERS” —11ALIVE
“ALPHARETTA LIVE-WORK-PLAY DEVELOPMENT
TAKES NEXT STEP” —WSB–TV
“AVALON GROWTH APPROACHING 

TO BOOST ALPHARETTA” —GEORGIA NEWS
The mall may be dead…
but retail is alive and well.
Experience it at
Opening October 2014
This SlideShare brought to you by
Feel free to share it with your 

friends or leave a comment, and let 

us know what you think!
DIDYOUENJOYTHIS
PRESENTATION?
Shutterstock / 35694751
AMC, The Walking Dead (Fair Use Doctrine)
Shutterstock / 148370285
Wikimedia Commons
Wikimedia Commons
Flickr / “South Coast Plaza, Costa Mesa, 1980s" 

by Orange County Archives
Flickr / "(Formerly) My Drive Home" by SteevzStuff

Flickr / "Northpark Center" by Terrance Gilbert
Shutterstock / 160438778
Atlantic Station / North American Properties

Flickr / “The Grove in Los Angeles” by Eric E. Johnson

Angie Mosier
Shutterstock / 3666347
Atlantic Station / North American Properties

Shutterstock / 119152066
Lululemon / Media Assets
Flickr / “Anthropologie" by Dave Pinter
Wikimedia Commons
Kendra Scott Blog
Flickr / “Vineyard Vines Hingham in-Store" by Jeff Cutler
Flickr / "The Grove (Los Angeles)" by Prayitno Photography

Flickr / "LA Farmers Market" by Prayitno Photography
Flickr / "The Americana at Brand" by Chris Yarzab
Shutterstock / 94124290
CREDITSSlide 2, 3, 4
Slide 5, 6
Slide 8
Slide 10
Slide 11
Slide 16 

Slide 19

Slide 22, 23
Slide 26-29



Slide 30, 31
Slide 36

Slide 38
Slide 40
Slide 41
Slide 45
Slide 48
Slide 49
Slide 52, 53

Slide 54, 55
Slide 65

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The Mall is Dead: Who Killed It, Why It's Not Coming Back and What's Next for Retail

  • 1. THEMALLIS DEADWho Killed It, Why It’s Not Coming 
 Back and What’s Next for Retail
  • 2.
  • 5.
  • 6. The mall
 isn’t coming 
 back to life.
  • 7. Let’s see what we learn 
 from examining the body.
  • 8. Let’s see what we learn 
 from examining the body.
  • 9. First, we’ll check the 
 vital signs, just to be sure 
 the mall is really dead.
  • 10. 400+ MALLS Source: Yahoo! Finance were repurposed or closed 
 outright in last decade
  • 11. Source: Yahoo! Finance No new enclosed malls have opened since 2006
  • 12. Green Street Advisors, June 2012 10%of the 1,000 malls in the U.S. will FAILin next 10 years
  • 13. ARE MALLS OVER? AMERICA’S ABANDONED MALLS ARE PLACES OF NIGHTMARES -BEAUTIFUL DECAY NORTHTOWNE SQUARE MALL FIRST TOLEDO MALL TO JOIN “DEAD MALLS OF AMERICA” -EXAMINER.COM
  • 15. (But it wasn’t always this way...) Yep, things are NOTLOOKINGGOOD for shopping malls.
  • 16.
  • 17. Sales / occupancy rates at 
 malls are stagnant; only fortress 
 malls continue to thrive 2009 More than 60 new malls larger than 400,000 square feet open in U.S. 80s–90s First enclosed regional mall, Southdale Center, opens in Edina, MN 1956 First megamall opens 
 in Alberta, Canada with 
 over 800 stores 1981 Mall of America opens 
 with more than 35 million visitors in the first year 1992
  • 18. FORTRESSMALLS are still succeeding due to population growth, a desirable tenant mix, sophistication of nearby residents, 
 and high-end amenities offered. Some
  • 19. In 2012, these two fortress malls surpassed $1 billion in sales! South Coast Plaza Costa Mesa, CA 2.8 million sq. ft. Northpark Center Dallas, TX 2 million sq. ft.
  • 20. So, who is to blame 
 for killing the traditional shopping mall?
  • 21. GEN Y
  • 23. That’s more than 25%of U.S. population
  • 25. In 2013, millennials spent about By 2020, 
 millennial 
 retail spending 
 could hit $1.4 TRILLION $600 BILLION
  • 26. What was Gen Y’s
 MOTIVE?
  • 27. Malls weren’t meeting their 
 LISTOFDEMANDS
  • 32. Source: ArchPoint Consulting of millennials say
 customer service is
 very important 48%
  • 33. of millennials demand 
 an integrated, seamless shopping experience, regardless of channel.68% Source: Accenture
  • 34. Online shopping offers a wider selection, better prices and 
 access to more information.
  • 35. Naturally, malls are 
 struggling to keep up.
  • 36. Amazon’s five-year 
 average ROI is 17%whereas traditional 
 retailers average 6.5%
  • 37. During the 2013 holiday shopping 
 season, U.S. retailers received roughly HALFof the holiday foot traffic they 
 experienced three years prior.
  • 38. In 2014, it is forecasted that 
 online sales will account for 9%of total U.S. retail sales.
  • 39. This will likely increase to 11%of total U.S. retail sales by 2018.
  • 40. Source: ArchPoint Consulting 80%of millennials want 
 brands to entertain and 
 delight them during their 
 shopping experience
  • 41. Don’t write off these new, 
 higher expectations as MILLENNIALS BEING MILLENNIALS*
  • 42. * Millennials are stereotypically assumed to be spoiled, demanding, etc. MILLENNIALS BEING MILLENNIALS* Don’t write off these new, 
 higher expectations as
  • 43. This evolution within the retail industry extends beyond adults ages 18 to 35. There is a NEWCLASSOF CONSUMERS
  • 44. They expect 
 a new kind 
 of shopping experience 
 that has… Walkability Experiences Connectivity
  • 45. and they are going to get it.
  • 46. The new-class consumer 
 provides instant feedback. 
 She posts pictures of what 
 she likes on Instagram and 
 complains on Twitter about 
 bad customer service. She 
 spends money in places 
 where she enjoys being. 
 The smart retailers are 
 taking this feedback and 
 evolving their visions and 
 merchandising strategies. ! Liz Gillespie VP Marketing North American Properties
  • 48. We've had a real 
 estate strategy of not 
 bundling or taking 
 weaker malls, and 
 we go to [lifestyle] 
 centers… which allow 
 us to really drive our
 business through 
 community. Christine M. Day Lululemon Athletica Former President and CEO
  • 49. We rarely do malls. Our preference is to be on the street. In a suburban market, we want to be in a village atmosphere that has pedestrian as well as vehicular traffic. ! Wade McDevitt Representative for Anthropologie
  • 50. And they aren’t alone. 
 Countless restaurants and 
 retailers are choosing this…
  • 54. Some brands 
 are leaving 
 their current 
 Alpharetta 
 locations and relocating 
 to Avalon.
  • 55. Others are completely 
 new to the 
 market and 
 chose Avalon 
 for their 
 first location. L O U G R E Y
  • 56. And they aren’t alone. 
 Research shows that top brands and 
 up-and-comers, alike, are moving AWAYFROMMALLS
  • 57. 2 STORES OPENED THIS YEAR 
 4 MORE OPENING The Woodlands in The Woodlands, Texas 
 (Lifestyle Center / March 2014) Shops Around Lenox in Atlanta, Georgia
 (Open-Air Center / May 2014) University Park Village in Fort Worth, Texas 
 (Lifestyle Center / Summer 2014) The Summit in Birmingham, Alabama 
 (Lifestyle Center / Fall 2014) Avalon in Alpharetta, Georgia 
 (Mixed-Use / Fall 2014) Classen Curve in Oklahoma City, Oklahoma
 (Mixed-Use / Fall 2014)
  • 58. 3 STORES ANNOUNCED 
 TO OPEN THIS YEAR Belvedere Street in Tiburon, California
 (Standalone / June 2014) North Hills in Raleigh, North Carolina
 (Lifestyle Center / June 2014) Avalon in Alpharetta, Georgia 
 (Mixed-Use / Fall 2014) Planning to open another 5-10 before the year’s end; haven’t announced where or when
  • 59. 78 FREESTANDING STORES The McLaughlins seek buildings with 
 character on street locations, occasionally 
 open in lifestyle centers, and shun malls. “Frankly, the mall atmosphere diminishes the brand.” – Kevin McLaughlin
  • 60. Top developers and operators GETIT
  • 61. THE GROVE’S 
 AWARD-WINNING CONCIERGE SERVICES Personal shopping Dining reservations Package check Store, area and 
 tourism information Foreign language 
 assistance Events and activity 
 assistance The Grove Gift Cards 
 by American Express
  • 62. ONE OF THE BIGGEST TOURIST ATTRACTIONS 
 IN CALIFORNIA WITH 18+ MILLION VISITORS PER YEAR THAT’S MORE THAN DISNEYLAND!
  • 63. THE AMERICANA 
 AT BRAND’S CONCIERGE SERVICES Bellman service, 
 package assistance, package check Restaurant and travel reservations Assistance with 
 concert/event tickets Postage, mail, shipping and delivery assistance Gift giving and 
 shopping assistance Gift cards by 
 American Express
  • 64. THE AMERICANA 
 AT BRAND HAS 16+ MILLION VISITORS PER YEAR GENERATES ANNUAL SALES OF $1,100 PER 
 SQUARE FOOT OUT 
 OF ITS 70 STORES
  • 66. The Southeast’s preeminent 
 experiential development – a place where resort-inspired hospitality, specialty retail, entertainment, restaurants, residences, offices, hotels and public spaces come together to create a truly unique experience. 
  • 67.
  • 68. 60+leases signed with Avalon in the past year
  • 69. 97%leased when Avalon was still 6 months away from grand opening
  • 71. Their feedback is not only plentiful, but positive as well.
  • 75. $600M MIXED-USE DEVELOPMENT IN ATLANTA SUBURB GETS GREEN LIGHT —COMMERCIAL PROPERTY EXECUTIVE ALPHARETTA’S AVALON PROJECT SNAGS 1ST TENANT —ATLANTA BUSINESS CHRONICLE One of Atlanta’s Hottest Restaurant Groups Signs 
 at Avalon
 — North American Properties “ALPHARETTA’S AVALON IS DRAWING IN-TOWN RESTAURANT, RETAILERS” —11ALIVE “ALPHARETTA LIVE-WORK-PLAY DEVELOPMENT TAKES NEXT STEP” —WSB–TV “AVALON GROWTH APPROACHING 
 TO BOOST ALPHARETTA” —GEORGIA NEWS
  • 76. The mall may be dead…
  • 77. but retail is alive and well.
  • 81.
  • 82. Feel free to share it with your 
 friends or leave a comment, and let 
 us know what you think! DIDYOUENJOYTHIS PRESENTATION?
  • 83. Shutterstock / 35694751 AMC, The Walking Dead (Fair Use Doctrine) Shutterstock / 148370285 Wikimedia Commons Wikimedia Commons Flickr / “South Coast Plaza, Costa Mesa, 1980s" 
 by Orange County Archives Flickr / "(Formerly) My Drive Home" by SteevzStuff
 Flickr / "Northpark Center" by Terrance Gilbert Shutterstock / 160438778 Atlantic Station / North American Properties
 Flickr / “The Grove in Los Angeles” by Eric E. Johnson
 Angie Mosier Shutterstock / 3666347 Atlantic Station / North American Properties
 Shutterstock / 119152066 Lululemon / Media Assets Flickr / “Anthropologie" by Dave Pinter Wikimedia Commons Kendra Scott Blog Flickr / “Vineyard Vines Hingham in-Store" by Jeff Cutler Flickr / "The Grove (Los Angeles)" by Prayitno Photography
 Flickr / "LA Farmers Market" by Prayitno Photography Flickr / "The Americana at Brand" by Chris Yarzab Shutterstock / 94124290 CREDITSSlide 2, 3, 4 Slide 5, 6 Slide 8 Slide 10 Slide 11 Slide 16 
 Slide 19
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 Slide 54, 55 Slide 65