A resurgence of shopping malls is on the horizon. According to Placer.ai’s 2021 predictions, shoppers will be looking to venture out and spend money, which will benefit malls tremendously. With malls evolving to incorporate mixed-use adaptations, such as gyms, residential areas, dining and entertainment facilities, there will be an opportunity to create a significant comeback with a focus on community gathering places. “There are lots of factors working in the favor of malls in 2021. Firstly, people miss them. When shopping was open, visitors came back and if COVID comes under control in early 2021, the impact on malls could be massive,” wrote Ethan Chernofsky, Vice President of Marketing at Placer.ai in the report.
The retail mix is changing as we know it. There’s more diversity in malls and this will only continue to grow and expand throughout 2021. Mall owners are becoming more aggressive and creative to incorporate new tenants and major renovations.
“By forcing adaptation and evolution, malls could end up stronger in the coming years than they were before. And while top tier malls were actually up year-over-year in January and February of 2020, even struggling malls could benefit strongly from a ‘redefinition’. If this trend starts to show signs of taking place, expect a powerful surge for the wider space,” Chernosky noted.
Along with malls, Placer.ai’s report featured Kohl’s, HomeGoods and At Home as winning retailers. Kohl’s is predicted to dominate the department store sector. The retailer has made influential moves this past year in the industry, serving as a return location for Amazon and a newly announced in-store partnership with Sephora to expand their beauty offerings.
HomeGoods saw an average 6.7% year-over-year increase in traffic from July to November. The retailer presents a unique combination of strong performance and value orientation that is predicted to position them well in the next year. At Home spent the past year focused on brick-and-mortar growth, and even noted a possibility of adding 400 new stores. From June through November, the retailer saw monthly visits that were 25.9% higher on average than the same months in 2019. Expanding their physical footprint has paid off in their favor.
Although the past year was challenging, it showed the true resilience of consumer demand and it put many retailers to the test to reinvent themselves. Both serve as a true testament to the diligence of this industry. At SREG, we believe in the strength of malls and their power to remain a driving force in retail. The past year tested our creative abilities; however, we managed to thrive and expand as a company. In 2021, we will continue to focus on growth while remaining one step ahead.
Source: 2021 Winners – Placer.ai
Photo Credit: Unsplash
