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.
Data compiled by analytics company RetailStat shows annual visits to strip malls surged 18% last year compared with prior to the pandemic.
Convenient shopping options, hybrid work and millennials moving to fast-growing suburbs are driving that trend.
"Lines are shorter because of smaller stores, parking is easier, they’re usually on your way home from dropping your kid off at school or on your way home from work," said real estate attorney Jessica Vara of Hunton Andrews Kurth.
And retailers are trying to get a slice of the action. Macy’s announced last year it was opening 30 new small format stores in off-mall locations. The new stores, about a fifth the size of traditional stores, offer a slimmed-down selection, according to the retailer.
But strip malls face criticism for being an eyesore to their communities, adding to environmental problems and contributing to the demise of traditional business districts.
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?
Chapters:
0:00 – 1:46 Introduction
1:47 – 4:39 Chapter 1. Macy’s exits the mall
4:40 – 7:33 Chapter 2. The king of retail real estate
7:34 – 10:04 Chapter 3. Investing in strip malls
Produced by: Shawn Baldwin
Edited by: Nora Rappaport
Supervising Producer: Jeniece Pettitt
Animation: Christina Locopo, Jason Reginato
Additional Footage: Getty Images, Macy’s
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Why Macy’s And Other Brands Are Moving Into Strip Malls
Author: CNBC
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News post in October 6, 2024, 6:03 pm.
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