Any idea what it means to be an architect of the American dream? Well – that’s how a man named Victor Gruen was described after he designed the world’s first ever indoor shopping mall in 1956.
Minnesota’s Southdale Center was the first completely enclosed and climate-controlled shopping hub – a concept which quickly spread throughout the world, providing millions of shoppers with a place to escape the elements and lacklustre local high streets. And it’s no surprise they took off in such a big way – these new shopping malls were a breeding ground for growing numbers of chain stores, department stores, and restaurants which gave local communities access to more shopping and dining options than ever before. It was modern, exciting, and a great place to hang out – it was progress!
Struggling for relevance
But 62 years later, it seems the tables are turning and Victor Gruen’s shopping mall is now struggling for relevance. Consumer excitement is turning to boredom and the once revolutionary “chain store” is taking a huge hit, thanks to exploding ecommerce. And it’s a pretty dismal picture in the US – the country where it all began. It’s reported that US department stores have diminished by as much as 25% since 2002. What’s more, with as many as 5,300 retail store closings in the first half of 2017 alone, it’s estimated that 1 in every 4 malls in the US will go out of business by 2022.
The demise of the mega-mall has everything to do with changing consumer habits and attitudes. Yes, the novelty has worn off and people are less likely to think of malls as vibrant, exciting, contemporary spaces and more likely to describe them as culture-starved retail behemoths, sapping the life out of local businesses and high streets. Indeed, tree-lined and sun-drenched highstreets all over the world have seen amenity and community spirit disappear in favour of boarded up windows and discount stores. Unsurprisingly, people want them back!
More wholesome and diverse shopping experiences
While mega-malls in 2018 stoke fears of parking woes, crowds, and a mission-like shopping trips the rise of online shopping means consumers no longer need to target the mall to strike off their shopping list. This is because they have the freedom to shop sporadically at any time and from anywhere. As a result, shoppers are now turning their attentions to more wholesome, diverse, and enjoyable experiences while they shop in the physical domain.
There’s no doubt, communities are returning to traditional local scenes and high streets in droves. Here, consumers who value the overall experience can drink, dine, socialise, handle fresh fruit and vegetables, or even go to the gym while they casually shop for one or two items. And it’s a much more ethically rewarding experience too. After all, six decades of shopping malls has taught communities the value of supporting local businesses, startups, and those increasingly popular pop-up stores.
Unsurprisingly, as consumers vote with wallets, councils and developers are starting to follow suit. In future, it seems more and more of those glass-cladded, multi-storey malls will see the wrecking ball as councillors and developers work together to create sustainable communities with vibrant shopping, living, and entertainment precincts.