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Resilience Under Pressure
August put mall traffic to the test, with record-high August gas prices and softer consumer sentiment coming just as back-to-school shopping was in full swing. Against that backdrop, strength at open-air and indoor malls pointed to a resilient consumer – though the month opened a wider gap between shopping destinations close to home and outlet centers that depend on a longer drive.
Open-Air Leads as Indoor Malls Gain Ground
Open-air shopping centers sustained their lead in August 2026, with visits up 6.6% year over year (YoY). The format has posted positive YoY growth every month this year, reflecting the broad appeal of a category that spans grocery-anchored neighborhood centers, mixed-use destinations, and experience-oriented lifestyle centers.
Indoor malls came in close behind at 5.0% – the format's largest YoY gain of 2026 – likely driven in part by back-to-school shopping. The National Retail Federation forecast a record $43.3 billion in K-12 spending this year, and with department and clothing stores ranking among the top planned shopping destinations, indoor malls were well positioned to capture that demand.
Outlet malls, meanwhile, saw visits fall 2.7% YoY, their weakest performance since March. As more distant destinations, outlet malls were likely more susceptible to higher gas prices, which ticked up on average in August after easing in June and July. And outlets may have been particularly affected by the Labor Day calendar shift: In 2025, part of the holiday weekend fell in August, while this year the entire weekend moved into September, removing a key travel and promotional period from the month’s traffic comparison.
Engagement Up Across Formats
Shopper engagement, however, was more consistent across the three formats, with average visit duration increasing YoY across the board. Indoor malls and open-air centers paired longer visits with traffic growth, while outlet malls saw the more notable combination of fewer visits and longer dwell times.
That pattern could suggest shoppers are consolidating trips as fuel costs rise, spending more time browsing, dining, and making a fuller outing of each visit. Longer dwell times may also reflect the growing share of space devoted to events, attractions, dining, and placemaking, giving visitors more reasons to linger beyond shopping alone. And at outlets, those longer stays may give tenants more opportunities to convert a smaller pool of visitors, helping cushion the impact of traffic headwinds.
Watching the Pump Into the Holidays
August data points to a resilient mall shopper, with visits rising at open-air and indoor centers and dwell times increasing across all three formats. Whether that resilience carries into the holidays may depend in part on what happens at the pump – though malls are entering the fall with plenty of reasons for optimism.
For more data-driven retail insights, visit placer.ai/anchor.
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