CNBC Marathon explores how malls across the United States are evolving with the times.
While many U.S. malls face anchor store closures and empty parking lots, some are finding new life by becoming housing. Real estate developers are building housing inside of or next to shopping malls as department stores like Macy’s, JCPenney and Sears shrink or cease to exist. At least 192 U.S. malls planned to add housing to their footprint as of January 2022. CNBC visited a Macerich housing project at Flatiron Crossing Mall in Broomfield, Colorado as well as the Arcade Mall in Providence, Rhode Island to find out what it is like to live inside a mall.
U.S. adults make about 1.3 billion visits to shopping centers each month or about 62 trips per person annually, according to the International Council of Shopping Centers. While some outlets, like malls, have struggled to retain shoppers, foot traffic to strip malls is booming. The U.S. has more than 68,000 strip malls from coast to coast, according to the International Council of Shopping Centers. So how did the U.S. become covered in strip centers, and could the format be the future of brick-and-mortar retail?
Despite a number of closures, U.S. malls are making a comeback, due in part to a surge in younger shoppers. Members of Generation Z, born between 1997-2012, are spending money in physical stores at a similar rate to their grandparents. Some of the top shopping destinations for Gen Zers include department stores like Macy’s, and JC Penney’s, and specialty retailers like Express, Abercrombie and Apple. So can younger shoppers help save the traditional brick and mortar mall? CNBC went to Freehold Raceway Mall in New Jersey to find out.
Foot traffic to suburban shopping malls has returned to pre-pandemic levels and high-end malls are thriving. Yelp found that 17 out of the top 25 brands driving consumers to malls are restaurants, and the dining options for visitors have moved well beyond the traditional food court that would include chains like McDonald’s, Chipotle and Panda Express. CNBC visited the American Dream Mall in New Jersey to see how dining has evolved at the mall.
Chapters:
00:00 Introduction
01:14 How Shopping Malls Are Being Transformed Into Apartments In The U.S. (Published December 2024)
10:25 Why Macy’s And Other Brands Are Moving Into Strip Malls (Published October 2024)
20:28 How Gen Z Is Reviving U.S. Shopping Malls (Published December 2024)
29:36 Why Restaurants Have Become So Important To Shopping Malls (Published December 2024
Produced by: DeLon Thornton, Shawn Baldwin, Ryan Baker
Edited by: Evan Lee Miller, Nora Rappaport, Marc Ganley
Reporter: Gabrielle Fonrouge, Melissa Repko
Graphics: Jason Regniato, Christina Locopo
Supervising Producer: Jeniece Pettitt
Senior Managing Producer: Tala Hadavi
Additional Camera: Juliana Broste, Natalie Rice
Additional Footage: Getty Images, Macy’s, American Dream Mall
Post Production Support: Erin Black
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How Malls Are Evolving In The U.S. | CNBC Marathon
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