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Shopping malls are making a comeback with new experiences beyond retail

Shopping malls are making a comeback with new experiences beyond retail
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SAN DIEGO (KGTV) — Shopping malls across the country are experiencing a resurgence as they adapt to changing consumer preferences by offering more than just traditional retail experiences.

The rise of online shopping initially posed significant challenges for shopping centers, with many struggling to maintain foot traffic as consumers shifted to digital platforms. However, mall operators have responded by completely reimagining their spaces to create destinations that blend shopping, dining, entertainment and even residential and office components.

"I grew up in the malls, and then I noticed as I was getting older Amazon come out and a lot of our favorite stores and our malls shut down," said local shopper Kody Osborn.

Colin Shaughnessy, executive vice president of leasing for Unibail-Rodamco-Westfield, which operates more than 60 shopping malls nationwide including Westfield UTC and Westfield Plaza Bonita, explained the transformation.

"Ten years ago, you had multiple large department stores and everything was enclosed. And as the department stores became irrelevant or less relevant developers had to flip the shopping centers inside out and create custom shopping environment," Shaughnessy said.

The strategy focuses on creating comprehensive experiences that give people reasons to spend extended time at malls beyond traditional shopping.

"So places for people to come to spend their time and actually have an experience besides just shopping. And then within the makeup of the overall retail you've got luxury, you've got fashion, you've got health and wellness," Shaughnessy said.

Fashion Valley Mall has embraced this diversified approach to attract different demographics.

"Well, we don't just have one audience, you know, we have an amazing array of luxury stores with over 200 different shops and retailers here. Everything from H&M to Prada and everything in between," said Leila Ginsburg, director of marketing at Fashion Valley Mall.

Ginsburg noted that Gen Z shoppers particularly seek experiential retail environments where they can socialize while shopping.

"They like to come here not just to buy stuff, but for the whole experience, the touch and try experience, and then buy," Ginsburg said.

The transformation appears to be successful. According to data from Deloitte, a multinational professional services network, 80% of all shopping still occurs inside physical stores. Additionally, shopping center vacancy rates have reached their lowest point in two decades at 5.4%.

Shoppers have noticed these changes firsthand. Elizabeth Hinton, who visited a mall looking for shoes, found herself making additional purchases.

"You forget what you need, you know, because I needed stuff from Vans and so we're walking past and I was like, oh, my work pants. So I ran in and now I got two pairs of work pants and now, you know, we still got the lemonades," Hinton said.

This story was reported on-air by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.

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