When it comes to shopping, the influence of the shopping mall can’t be overstated. Through the 1960s, these large, enclosed shopping centers grew in prominence. As suburbia blossomed and more Americans became car owners, the shopping mall became the epicenter of retail life. 

However, shopping malls struggled in recent years due to the rise of online shopping, changing consumer behavior, and a lack of strategic repositioning, as Forbes states. Add in the challenges of the COVID-19 pandemic, and it became even more complicated for malls to survive. Despite those struggles, things appear to be on the up and up for malls. 

According to the International Council of Shopping Centers, younger consumers now prefer in-person as much as online shopping, if not more. Gen Z, who make up 40% of global consumers, are increasingly interested in the instantaneous gratification of trying and buying their products in person. Around the world, shopping malls are introducing new perspectives on the traditional retail formula. Here’s a look at a few that are paving the way.

Immersive Entertainment Shines at One Los Angeles Mall

In Los Angeles, the HHLA Mall has revolutionized their programming with immersive entertainment. After the mall was purchased for $80 million, their president shared “There is still plenty of opportunity for the American mall to become the community’s all-in-one hub again.” Clearly, he was correct. 

The mall brought on Meow Wolf, an immersive art production company with installments across the country, as a tenant this year, and they plan to open a permanent exhibit in the mall in just over a year, taking up a portion of the building’s Cinemark space, Forbes reports. 

HHLA’s addition of 60out Escape Rooms is also exciting, particularly since the mall will serve as the company’s flagship location for escape rooms and virtual reality entertainment, Forbes adds. The escape room genres include everything from Smurfs to the Titanic, demonstrating that there’s something for everyone. 

Around the country, it appears that several shopping malls are following suit. Netflix is actively engaging with shopping malls, establishing Netflix House, a year-round space to engage with Netflix brands. Boasting immersive experiences with exciting retail, food and beverage components, the Netflix House will open soon at the Dallas Galleria and at the King of Prussia Mall in Philadelphia. 

 “Shopping malls across the United States are following in HHLA’s footsteps, incorporating more immersive, interactive and entertainment-based tenants,” the Forbes piece continues. “With the inclusion of arcades, movie theaters, laser tag, go-karts, indoor sports and even roller coasters, malls are attracting a brand-new audience of experience-seeking consumers.” 

Engaging with Gen Z

Shopping malls are particularly big with Gen Z, and business leaders believe that generation is going to be the generation that rediscovers malls. 

“We’re seeing a rejuvenation of the younger consumers wanting to hang out at the mall,” said David Simon, CEO of Simon Property Group, PYMNTS reported. “And I think it’s our obligation, both for us and our investors, and also for the retailers, to really highlight that.”

Viewed as much more than a spot for shopping, malls are considered to be a gathering space. That’s why in September, Simon launched a new marketing campaign aimed at drawing Gen Z back into its malls called “Meet Me @ The Mall.” The campaign is designed to engage younger consumers by showcasing the variety of experiences and activities Simon malls offer, far beyond just shopping.

Expanding the View of What a Mall Can Be

Many former shopping malls are expanding into new territory. At the Southdale Center in Minneapolis, the shopping mall is seen as a vessel for everything from luxury apartments and an extended-stay hotel to a high-end fitness center and co-working space. 

In contrast to the pandemic’s negative influence on many stores, the rise of hybrid work was helpful to local retail because “residents who previously commuted to downtown Minneapolis five days a week have more time to shop and dine out closer to home,” the Wall Street Journal reported. 

“Young people go shopping, they go out for dinner, they want to spend money,” said Bill Neuendorf, Edina’s economic development manager.

Another unique example is The Well, a seven-building mixed-use retail, residential and office development in the heart of Toronto. As Bloomberg writes, every feature of The Well has been carefully considered, including the fact that 7,500 residents of the mostly residential CityPlace neighborhood will likely find themselves passing by the mega-complex on a daily basis. The emphasis on an “outdoor” aesthetic creates the impression of being out in nature, a unique contrast to the typically-enclosed setup of shopping malls. In a post-COVID world when fresh air is emphasized, this is a highly coveted component. 

The future of shopping malls is likely to be incredibly bright. A study from Coresight Research found that consumer traffic in malls is up more than 10% on average compared to pre-pandemic levels.

“The death of the mall is wildly exaggerated,” Coresight Research Founder and CEO Deborah Weinswig said in an interview with USA TODAY. “The other side of that is the opportunity is more significant.”

With this significant opportunity comes incredible potential for growth. Experience-focused renovations can transform a shopping mall, leading to a new frontier of retail that revolutionizes how we shop and live. As shopping malls reposition themselves to become a destination for both shopping and immersive entertainment, now is the time to grab hold of this potential and create an exciting future.