Antonio Santos del Valle
The transformation of shopping centres: evolution, strategies and consumer behaviour
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Antonio Santos del Valle
The transformation of shopping centres: evolution, strategies and consumer behaviour
At last week's virtual and face-to-face meeting with specialists and companies related to shopping tourism, and led by the Global Shopping Tourism Network, managed by the company Global Journey Consulting, an interesting debate was held on the current situation, in general and taking as a premise the variety and differentiation of tourist destinations, of shopping centres, especially in the United States.
The Working Group highlighted that for decades, shopping malls were the epicentre of consumption, leisure and social life in many cities around the world, especially in the United States. These temples of retail marked generations and became icons of 20th century suburban urbanism. However, in recent years, shopping centres have undergone a profound transformation, driven by changes in consumer habits, digitalisation and a growing preference for more personalised and interactive experiences. This meeting explored the recent evolution of shopping centres, the strategies they have adopted to stay relevant and the role that consumer behaviour plays in their renaissance or demise.
From Glory to Decline: Recent Developments in the US
The United States, pioneer of the modern mall model, has experienced an unprecedented contraction in the number of operating malls. In 1986, the country had nearly 25,000 malls spread across the country. Those were golden times, marked by suburban sprawl, the rise of the automobile and the growing purchasing power of the middle class. However, between 2017 and 2022, an average of 1,100 malls closed each year. By 2022, only 1,150 remained in operation.
This dramatic decline was neither sudden nor isolated. Factors such as the emergence of e-commerce, ageing infrastructure, retail oversupply and, more recently, the COVID-19 pandemic, accelerated a trend that was already underway. Anchor shops - large department stores that traditionally attracted consumers - were the first to close, leaving behind huge empty spaces and a decline in foot traffic.
However, this crisis also marked a turning point for the sector, which began to explore new ways of reinventing itself.
Despite the reduction in the number of shopping centres, not all have suffered the same fate. In fact, in a somewhat paradoxical phenomenon, both high-end and low-end malls have experienced an upturn in foot traffic since 2019.
Low-tier malls, even those with empty anchor shops, recorded a 10% increase in visitor flow. This phenomenon can be partly explained by their accessibility, their proximity to residential areas and their adaptation to local needs. Many of these centres have opted for local businesses, basic services and community spaces.
For their part, premium shopping centres, with luxury brands and exclusive offerings, saw their foot traffic grow by 12% in the same period. These centres have capitalised on the desire for in-person experiences, combining fashion, food, art and technology to create environments that go far beyond shopping.
This uneven renaissance has led to a polarisation in the sector: while some centres are evolving and thriving, others are disappearing or being radically transformed.
Keys to success: strategies that work
Shopping centers that have survived and even thrived in this new environment have done so through innovative strategies.
What sets them apart? Their focus on the visitor experience, their careful selection of premium brands and their ability to anticipate trends. Successful centers have understood that it is no longer enough to offer products; it is about offering memorable moments.
Currently, three major types of shopping centers are emerging, each with a different focus:
Urban centers with restaurant and accommodation offerings: Located in central areas, these centers integrate with urban life, offering signature restaurants, boutique hotels and cultural events. They are hybrid spaces that mix leisure, tourism and commerce, attracting both locals and visitors.
Renovated classic shopping centers: These centers have preserved their traditional structure but have updated their commercial proposal. They incorporate pop-up stores, green areas, temporary markets and themed events to maintain constant interest.
Entertainment-oriented centers and digital experiences: Designed for the new generations, these centers prioritize interactivity, immersive spaces, simulators, eSports and sensory experiences. In them, buying is almost secondary; what is important is the environment, shareable digital content and the social component.
This diversification allows centers to adapt to different audience profiles and consumer expectations.
The consumer, the protagonist of the transformation
The change in consumer behavior has been perhaps the most decisive factor in the evolution of shopping centers. New generations value authenticity, sustainability, personalization and, above all, experiences. It is no longer about going to the mall to shop, but about spending time, socializing, discovering and enjoying.
Luxury centers have been able to read this change. They continue to attract not only affluent customers, but also the curious who are looking to experience luxury, even if only for a day. Imposing architecture, carefully designed window displays and Instagrammable spaces have become a magnet for visitors.
In addition, these malls cultivate intergenerational traditions that reinforce their emotional bond with the public. A curious example is the persistence of practices such as tossing coins into decorative fountains, something that attracts entire families, grandparents, parents and children, becoming emotionally charged rituals.
Even in an increasingly digitized world, consumers value physical contact, the possibility of touching products, receiving advice in person and living an integral experience. In this sense, shopping malls have an advantage over online retail that they know how to exploit.
Economic and urban impact
Beyond consumption, shopping centers play a crucial role in the economy and the urban fabric. They generate direct and indirect employment, energize entire areas of cities and can become anchors of urban regeneration when properly managed.
The decline of shopping centers in some cities has led to losses in the millions, both for the owners and for the municipalities that depended on their tax revenues. However, their transformation into multifunctional spaces has opened up new opportunities for economic development.
Some centers have been converted into offices, medical centers, student residences or university campuses. Others have opted for a combination of uses: retail, coworking, housing and public spaces. This “mixed-use” model maximizes land value and better suits the needs of local communities.
Investment in technological infrastructure has also become a key factor. From artificial intelligence systems to optimize the flow of people, to apps that personalize the shopping experience, shopping centers are adopting digital tools to become more efficient and attractive.
A future with multiple paths
Although the golden era of the shopping mall as the sole epicenter of consumption seems to be behind us, its story is far from over. Their current evolution is not a simple attempt at survival, but a profound metamorphosis that is positioning them as more versatile cultural, social and economic nodes.
The key lies in their ability to reinvent themselves, to understand the consumer and to respond to constantly changing urban dynamics. Not all centers will be able to adapt, but those that do will play an important role in the fabric of the cities of the future.
Finally, it was pointed out that shopping malls are no longer just places to shop. They are places where people seek connection, entertainment, community and, above all, memorable experiences.
The authors are responsible for the choice and presentation of the facts contained in this document and for the opinions expressed therein, which are not necessarily those of Tourism and Society Think Tank and do not commit the Organization, and should not be attributed to TSTT or its members.
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