NORTH OLMSTED, Ohio — Are shopping malls finally making a comeback?
It's a question that continues to raise eyebrows as in-person retail has finally started inching closer to pre-pandemic levels.
However, Business Insider reports malls are still nearing extinction—claiming just 700 are still standing in the U.S., and ten years from now, just 150 will be in operation.
In our commitment to follow through on stories that matter to you, we're once again diving deeper into the future of malls, following a story he first brought you in the Fall.
We don’t just report the initial story—we follow through to its conclusion. Read and watch our previous reporting on this story below and see more stories that we've followed through on here.
Between inflation and major retailers and anchor stores like Bed, Bath and Beyond and David's Bridal shuttering operations, it has many wondering about the overall future retail landscape.
However, experts say some malls and stores have regained their footing.
They've shifted the concept in a new direction and are catering to a new generation of shoppers that want a full-scale, local, affordable, and entertainment-based experience.
At North Olmsted community centerpiece Great Northern Mall, Dan Crandall says it's about re-purposing old spaces and constantly pivoting to meet shopper trends.
"From an Express Clothing store to a furniture store — what does this say about the market and future of malls? It shows they want to be in malls. The tenants want to be in the space," said Crandall, Marketing and Business Development Manager at the Great Northern Mall.
When Express Clothing decided to close its doors and sell more items online, the mall looked toward the next best thing and something everyone could use — 4in this case, affordable furniture for home buyers was the answer.
"AVRS new concept is mid-century modern; they've got a lot of kitchen tables, soft sitting couches," Crandall said.
AVRS is owned by neighboring high-end furniture store Zebrano, which opened in the Fall.
It's critical at a time when millennials are buying their first homes and trying to save amidst surging rent prices.
But it's not the only new store coming to the nearly 50-year-old space. Carter's Clearance is among nearly a dozen new leases secured in 2023.
Fifteen new stores came to Great Northern in 2022.
Crandall says the retail experience has evolved, and they are too, now intentionally offering up more affordable and cost-effective options for the average shopper.
He says the secret to success is hosting community events and catering to hyper-local, homegrown businesses.
"There happened to be a little space coming available, and the price was similar, and I was like this is a no-brainer," said Beverly Bolton, owner of Fortune's Cookies.
After selling at farmer's markets for years, Bolton is opening her first-ever store at the mall.
She's now offering up dozens of flavors and varieties in a mall setting, as the old Mrs. Fields store left a while back.
She's taking a gamble, and she says the runoff from foot traffic is a stable way to enter the game.
"I really do feel like they could be making a comeback. I mean, for me, I think that's great to shop so many places," Bolton said.
News 5 told you back in the fall, real estate brokerage firm CBRE forecasted shopping malls experienced a ten-year high for leasing and investment in 2022. In fact, Simon Property Group, which is the nation’s biggest mall owner, reported an increase in its occupancy and rents from 92.8% to 95%.
Those numbers appear to be on track, as experts say the market has evolved again.
"We have actually seen, as the pandemic has faded away, a resurgence to some extent in in-person shopping. And I think some people realize they missed it," said Ted Rossman, Senior Industry analyst at Bankrate.com.
Rossman said the mall landscape has experienced a significant shift in operation, and what's working is multi-use concepts.
"The malls that seem to be doing the best are the ones that have other things to do. So like, dining options would be a really good example, or movies or a Ferris wheel or an ice skating rink or laser tag or, you know, whatever it is," Rossman said.
Rossman says with economic uncertainty at a constant, people are seemingly still willing to shell out cash on experiences and necessities.
The future of malls lies in hybrid-style options with residential living and activities.
He says 80% of retail is still happening in person, so don't believe all the negatives in headlines and stories you read online.
Mall officials say the secret to their success is evolving with a new generation of shoppers and also looking to fill vacancies as soon as they can.
Crandall says the pandemic helped people re-discover their want for in-person retail.
"They need to see, touch, feel and be out with other people, so they want to be inside the space," Crandall said.
Bolton is hoping for good fortune in her business.
Great Northern said they intentionally tailor their mall programming events and social media to different generations.
They say while mall traffic is around 1.2 million visits in the first quarter, and flat, weekly programming and event traffic is up.
Fortune's Cookies is set to open sometime in June. AVRS is open now.
Great Northern is working to secure more leases in the near future.
We also reached out to SouthPark Mall in Strongsville for an update on their leases and the status of vacancies. They have not responded to our request at this time.
As for the future of Bed Bath and Beyond vacant storefronts, CNN reports some are being turned into Pickleball courts. Pickleball play and interest has surged by nearly 160%.
At last check, no vacant locations in Cleveland are going in that direction.
