15% of American Malls Projected to Close in Next Decade Amid Shifting Consumer Habits

The decline of traditional American shopping malls, once envisioned as vibrant community hubs, continues to accelerate, with projections indicating that 15% of existing malls could cease operations within the next decade. This trend highlights a significant shift in consumer behavior and retail landscapes, moving away from the "capitalist cathedrals" that dominated American culture for decades. The phenomenon has been tragically underscored by incidents such as a high-school student falling through the roof of an abandoned mall outside Pittsburgh, reportedly while filming a "dead mall" video.

The current state of malls stands in stark contrast to the original vision of their pioneering architect, Victor Gruen. A socialist who fled Vienna after the Nazi invasion, Gruen designed many of America's early malls with a utopian ideal. His blueprint for the first mall included homes, schools, hospitals, and a manmade lake, a concept that even inspired Disney's Experimental Prototype Community of Tomorrow (EPCOT). Gruen believed in balancing freedom with shared reality, stating, "It’s the merchants who will save our urban civilization," aiming to create inclusive public spaces beyond mere commerce.

However, Gruen later expressed profound disillusionment with his creations, famously disavowing them as "bastard developments" that "destroyed our cities" due as they deviated significantly from his integrated community model. The rise of "dead malls" is attributed to various factors, including the proliferation of e-commerce, an oversupply of retail space, the decline of anchor department stores, and changing consumer preferences for open-air lifestyle centers. Many malls now suffer from low consumer traffic and high vacancy rates, with some experts noting that the U.S. has 40% more shopping space per capita than Canada and five times more than the U.K.

The "dead mall" phenomenon, characterized by high vacancy rates and deteriorating conditions, is not unique to the U.S., with similar trends observed in parts of Europe and Asia. Redevelopment efforts are underway for some of these struggling properties, with conversions ranging from office spaces and educational facilities to healthcare centers and even fulfillment centers for e-commerce giants. As Harris Sockel noted in a recent piece, the loss of malls signifies a broader societal shift, prompting reflection on the need for more imaginative and beautiful places for public gathering.