It’s no secret that malls all around the United States are dying. Think of a dying or dead mall in your area; I’m sure you can name at least one. One of the malls I frequented as a kid, Randall Park Mall, is now home to an 855,000-square-foot Amazon distribution center, which seems only fitting as it is represents the retail trend responsible for its death. Right?
Randall Park Mall in North Randall, Ohio. Once the largest mall in the country, it was completely vacant and extremely dilapidated before it was torn down in August 2017.
It’s actually a lot more complicated than that. While many may blame the rise of online shopping on the decline of malls, a recent New York Times report argues that there are other factors with bigger impacts that are shuttering malls. For example, warehouse clubs like Costco and Sam’s Club and supercenters like Walmart have grown more than online shopping—Sam’s Club’s sales increased a similar amount to Amazon’s from 1999 to 2013, while Costco’s increased even more.
A Shrinking Middle Class
Another major factor in the decline of malls is the steady shrinking of the middle class and subsequent increase in income inequality that’s been occurring since 1970. Costco, Sam’s Club, and Walmart are known for their affordability, especially with the option of buying in bulk, which further lowers costs and saves time (and time is money, after all). Retailers catering specifically to low and high-income consumers have grown as the middle class has shrunk, which has caused those catering specifically to the middle class to falter. Another Cleveland-area mall, Beachwood Place, is located in an affluent area that is set to open five new stores and a restaurant while other malls in the region are closing.
The Shops at Crystals in Las Vegas has the world’s largest collection of designer brands like Gucci, Louis Vuitton (the largest in North America), Fendi, and Prada.
Experiences Over Things
Another reason many malls are failing is that Americans don’t spend as much money on “things” as they used to. Now, services such as healthcare, education, and entertainment take up most our income. For example, when we buy clothes today, we may go to discount stores like Mar