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How fmcg trends change,why people dont shop in malls anymore

What killed the Shopping Mall world wide?


The mall was killed by people who choose to order online, like from Amazon, and get things delivered, rather than driving to the mall and looking at it in stores.

The worst retail vampires are people who look at a product in a store, ask the salesman lots of questions, then order it online from a different supplier.


Why have malls gone out of style in world over?

Why have malls gone out of style in Indian Metros?



High rents – The rents forced many of the stores and smaller restaurants to close or move elsewhere. They weren’t replaced and the mall’s offerings grew more sparse. Fewer offerings = Fewer people.

The cities grew away from them – Both of the shopping malls in the mid-sized city close to my home are in areas where the growth no longer occurs. The city has grown away from them and adding better shopping elsewhere.

The big box stores beat them up – The two largest box store chain (which I don’t need to name) basically ate the malls proverbial “lunches.” Why go to the mall when you could go to them? Especially if you needed groceries, as well.


The anchor stores are failing – Sears anchored a staggering number of malls and it’s almost out of business. Macy’s , JCPenney’s and a host of regional chains have failed or are failing. Without those anchor stores, the malls are finished.

Gen X’ers and Millennials don’t have their parents money – If you are $60–100k in the hole with student loan, then the LAST thing that you are thinking of is going to the mall and dropping a few hundred over the weekend. You can’t afford it, and so you don’t do it. Malls need free-spending consumers and there aren’t many of them left,


Malls worked at a time when the economy was different and the country was different.

Things changed and the malls didn’t.

This is a big and complex question with lots of factors:


The internet. Yes. It’s a thing. It’s hurt a lot of retailers. It’s really hurt s few classes of “mall favorites”. The record stores, for example have been murdered by the internet.

Many of these malls are leveraged to the hilt. They have a second mortgage, and a seventy seventh mortgage. They could not cut their leasing prices and pay the bills.

Fewer teens are driving. The mall was once a popular hangout. Now they have snapchat, but no drivers license.


Some malls became increasingly strict about teens “hanging out” and kicked them out… Which is a great way to alienate future customers.

Some malls didn’t kick out unruly teens… And scared off paying customers. (You may note that these two are a contradiction. This is also a problem.)


Many of the customers of malls have split into two socio-economic groups. One of them went to wal-mart, and one went upscale. The “middle class” that shopped at malls has never fully recovered from the great recession.

Some malls became somewhat overrun with crime, though this issue was not universal.


(It’s often blamed, but this doesn’t really hold water).

Strip malls and various other retail destinations were cheaper and easier to build, and stripped away customers from larger malls, especially as they were often more convenient. (Literally everything I used to go to the mall for is both closer and more convenient for me today at another destination).


Will shopping malls ever have their glory days back?

No, they won’t.


Online shopping – This is big business, and it’s only going to get bigger. There’s no way that most shopping malls can compete with online retailers who don’t have the brick and mortar and employee costs that traditional stores did.

Fmcg products make youYoung-at-heart.

An aging population – Malls need families and children to patronize to remain open. An older population on a fixed income makes fewer purchases and definitely would only rarely go to the mall.

The movie industry is changing – A movie theater was often an anchor for many malls. It lured in people who then might have gone browsing or shopping. As the number of movie theaters decreases due to online streaming, the malls that they anchored will first suffer, and then close.


The giants are falling, or have fallen – The huge chain stores that anchored malls are going away, or are already gone. Sears, Carsons, and dozens of other stores have shuttered, while JCPenney’s is going to be de-listed by the New York Stock Exchange and Macy’s is nearly on life support. While some of these could be replaced by smaller or regional chains, even those retailers are hurting. The malls depended upon big stores anchoring a collection of smaller retailers, and that’s no longer the way the retail business is going.


Infrastructure costs are going to kill many of them – Most malls were built from the late 1960s until the mid 1990s. They require huge investments in their infrastructure and the money to do that just isn’t there. A mall near me tore down its Sears, and apparently someone “forgot” that asbestos was used during its construction. It’s demolition costs almost tripled as a result. Malls are old and they are in need of major interior and exterior maintenance.


Malls were always a short term prospect as when the Baby Boomers reached their dotage, they were unlikely to travel to them for shopping even if online sales hadn’t taken a huge chunk of their business. We are likely seeing the “middle of the end” of the shopping mall


Is it true that a lot of  shopping malls are dying? If so, why?

Malls were a phenomenon that ruled the 70s-80s-and into the 90s. It has run its course due to the internet. Brick and mortar stores are expensive to operate. Rental prices are ridiculously high. Then there employees to contend with, high utility costs and stock and public liability insurance, revenue sharing with the mall owners.


Not to mention that manufacturers have taken to selling direct via the web thus eliminating the need of the middleman. People started using mall stores and stores that are not in malls, to go to to try things on or handle products to check how the look and feel and then going home and ordering what they wanted from Amazon…usually for a lesser price. Malls can’t compete with that.

I’ll add a little to what everyone else is saying. They’re all right, but here are some other minor reasons:


No video game arcades. Back in the 70s and 80s, each mall had a video game arcade that pulled in the kids. And who had to come along? The parents with the money. Dropping your kid off at the arcade while you shopped was common. Then came home video games, and there was no need for a shop full of video games.

No music stores. Every mall used to have a place to buy music. These were popular with the teen crowd in particular. Then came high-speed internet and digital downloads. Now most of those music places are out of business.


Increased security. A lot of people quit going to malls because there were too many teens just hanging out at malls, killing time and causing trouble. So malls increased their security to deal with that problem. They drove out a lot of the teens, but the older shoppers didn’t return.


Demographic changes and preferences in teenagers has caused the shift.

There are two malls that I go to frequently. But I don’t go there to shop. I go there because they have nice indoor playgrounds for my little kids, and some days I can’t take them to outdoor playgrounds. The only thing I ever buy is a Starbucks coffee to sip while my kids enjoy the indoor playgrounds.


Will shopping malls ever have their glory days back?

Not like they will do.

There are still successful, thriving malls, but the glory days are done:


They overbuilt. Many urban areas had way too many malls.

Many of them were leveraged to the hilt, and as such weren’t able to lower rental costs to retain tenants during tough times.

Most of the traditional anchors are dead, and the replacements aren’t willing to pay premium rates for mall real-estate.


They failed to keep their current customer base and failed to get new ones. Malls were mostly attractive to young people, and as graduated drivers licenses made access more difficult, and social media replaced the mall as a gathering place, many young people (especially those with money to spend) stopped showing up. (Note: Successful malls are mostly high class places that cater to older customers).


Malls live and die by occupancy, and once you lose a few stores, it’s likely to cause a death spiral. You have to maintain a full store, and that’s hard to do in the current internet dominated retail market.

Shopping at Malls  is cheaper than a psychiatrist.

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