Thanks for Visiting!

Register for free to get the full story.

Sign Up
Already have a Placer.ai account? Log In

Indoor / Outdoor Malls - September Update

By 
Ethan Chernofsky
September 24, 2020
Indoor / Outdoor Malls - September Update
SHARE
Explore our free tools to get timely insights into key industries
Check out the latest trends for
No items found.
Key Takeaways

In July, we broke down the relative recoveries of outdoor and indoor shopping centers and found that, perhaps unsurprisingly, the former were recovering faster. The combination of shoppers’ concerns about COVID, limitations on which retailers were reopening, and other factors gave outdoor centers an advantage during the early stages of the recovery.

Yet, indoor malls were still showing signs of their unique strengths: the ability to drive visits from farther distances, and to keep those visitors in their locations longer. And this is a critical advantage because it unlocks the full power of indoor shopping centers to provide more than just revenue, but also uniquely-effective marketing and cross-shopping opportunities.

So, how are things looking now? We dove back into the same index of shopping centers to see if there has been a shift in the numbers.

Recovery Period Still Privileging Outdoor Shopping Centers

In terms of overall customer visits compared to 2019 levels, outdoor shopping centers have remained far closer to “normal.” The week beginning August 31st saw visits down 24.6% for outdoor centers, while indoor malls were down 37.2%. Yet, this marked an improvement, for both, from early June. Outdoor centers improved from 34.2% down the week beginning June 8th, while indoor centers improved to 42.1% down that same week, a near 5.0% improvement.

Critically, the latest week did not mark the high point for either. Both segments saw their best period for visits coming the week beginning August 17th, with indoor malls down just 17% year-over-year. And this was actually the strongest year-over-year decline number for either type of shopping center since the pandemic struck in early March. That same week, foot traffic at outdoor centers was down just 18%. 

Caliber of Visits Still Favor Indoor

This seasonal push for indoor shopping centers during the summer’s back-to-school shopping season is something we saw play out in other metrics as well.

While outdoor centers again proved to be better at driving overall visitor numbers, the “type” of visit still differed greatly. Looking at the week beginning August 31st, visits to indoor centers were 11.1% longer than those to outdoor centers. And while this was down from being 25.5% longer the week beginning June 8th, durations shortened after indoor centers saw strength in early to mid-August. During this period, visits were 25.4% longer — almost the exact same level above they had been in early June.

Additionally, shoppers traveled from longer distances to visit indoor shopping centers. The True Trade Area of indoor malls was 78.6% larger than that of outdoor centers during the week of August 31st. This was slightly narrower than the 87.8% gap in early June. But during the weeks in early and mid-August, there were gaps that were almost identical to those seen in June, with the week of August 3rd showing a difference of 25.4% in True Trade Area size.

Why Does this Matter?

These numbers go a long way in explaining a critical trend that could define the next few years of offline retail. Classic mall retailers, like Macy’s, have already announced that they’ll be trying out new outdoor shopping center formats. That makes sense, as the company looks to diversify its reach and approach in order to drive more visits and revenue.

But the opposite could happen, too. Outdoor-oriented retailers could come indoors because there are features that the traditional mall can provide that other centers simply can’t. From marketing reach, to cross-shopping potential, to access to different types of customers, malls have a clear value that they bring to the retail sector. And this will be compounded by the entry to new DTC and product-oriented brands that will likely try to establish retail space in shopping malls first due to their customer reach.

The Future State

Some shopping malls will likely close in the near future. But it doesn’t mean that the shopping mall itself is a dead retail concept. 

Malls will evolve, adding new tenants and different types of space. They will, however, need to develop a mix that includes more complementary mall experiences and less direct competition. That is becoming increasingly likely. The exit of older, established retailers is going to force mall management to think differently, and those that adapt could lead the way in driving a new, improved, and certainly more exciting future for a dated retail format.

Learn how downtown regions across US cities are measuring up with our free tools.
Check out the latest trends for
No items found.

Related Topics

Explore our free tools to get timely insights into key industries
Check out the latest trends for
No items found.
SHARE
Get 3 brand & industry
breakdowns every week
Subscribe to the newsletter
Oops! Something went wrong while submitting the form.

Get a Demo

Please enter your first name
Please enter your last name
Please provide a valid email
Please enter your email
Please enter company name

Thanks for reaching out!

One of our experts will be in touch soon

Try Placer.ai Free
Oops! Something went wrong while submitting the form.

Recent Publications

Get 3 brand & industry breakdowns every week

Subscribe to the newsletter
Placer.ai Office Index: October 2024 Recap
Placer.ai Mall Index: October 2024 Recap 
Halloween’s 2024 Retail & Dining Impact – Party City Carries the Season
Checking in With Department Stores: Nordstrom and Macy’s
Superstores and Wholesale Clubs Ahead of the Holidays
Home Depot and Lowe’s Heading Into the Holidays
Starbucks and Dutch Bros: Short Visits Lead the Way
Planet Fitness: Raising the Bar(bell)
Checking in With Full-Service Restaurants: First Watch, Chili’s, and Outback Steakhouse
RBI and Yum!: QSR Resilience in 2024
Boot Barn and DSW: Stepping Up Their Game
Target’s October Circle Week: A Data-Driven Snapshot
Chipotle, Shake Shack & Wingstop: Dining Success in Q3 2024
Playa Bowls and Tropical Smoothie Cafe: Berry Big Business
Cheesecake Factory & BJ’s Restaurants: Full-Service Success
Checking in on McDonald's and Wendy's 
Sprouts Farmers Market: A Specialty Grocer With a Traditional Twist
CAVA: The Craze Continues
Placer.ai Reaches $100M Annual Recurring Revenue
Catching Up With Carter's 
A Texas Roadhouse and LongHorn Steakhouse Showdown
Placer.ai Mall Index: September 2024 Recap – Labor Day Peaks and Holiday Season Predictions
Albertsons Q3 Check-In
Looking Ahead to the 2024 Holiday Season
Trader Joe's: Continuing to Thrive in 2024
Bowlero and AMF: A Ten-Pin Knockout
Recreational Retail: Store Performance in 2024
Placer.ai White Paper Recap – September 2024
A QSR and Fast-Casual Face-Off
Sam’s Club’s In-Store Retail Media Network Opportunity
The Rising Stars: Six Metro Areas Welcoming Young Professionals
Costco in 2024: A Deep Dive
Sherwin-Williams in 2024: Brighter Than a New Lick of Paint
Life Time and Orangetheory: Premium Fitness Flourishing
C-Stores: More Than A Pit Stop
Darden: Dining Dominance Undeterred 
Placer 100 Index for Retail and Dining: August 2024 Recap
Placer.ai Office Index: August 2024 Recap
Placer.ai Mall Index: August 2024 Recap – Back-To-School In Full Swing
Auto Parts Retailers: The Traffic Continues
Pumpkin Spice Works its Magic Once Again
School Season Sparks Retail Growth
Placer.ai White Paper Recap – July & August 2024
Big Lots’ Big Rightsizing Move in Four Data Points
Fun Away From The Sun: Checking in With Eatertainment
Domestic Migration and Population Growth: Strong Currents Off The Carolina Coast
The Civic Impact of Summer Events
Retail Trends in College Towns: A Back-to-School Snapshot
Five Below and Ollie’s Bargain Outlet: Consumers Still on the Hunt for Discounts
Macy’s & Bloomingdale’s: Into 2024 and Beyond
Limited Time Only: The Trend Continues
Beauty in 2024: Many Ways to Win
Dollar General & Dollar Tree: Powering Ahead in Q2 2024
The Home Depot and Lowe's Foot Traffic Remodel in Q2 2024
Superstore Update: Summer Savings Spree
Placer.ai Mall Index: July 2024 Recap – From Fourth of July to Back-to-School
Placer.ai Office Index: July 2024 Recap
Summer Movie Madness: Blockbuster Films Boost Foot Traffic
Driving Success: Toyota in 2024
Denny’s and IHOP: An All-Day Breakfast Matchup
Warby Parker: Seeing Clearly Now
Planet Fitness at the 2024 Halfway Point
Serving Summer 2024: RBI and Yum! Brands Q2 Foot Traffic
Starbucks, Dutch Bros., Dunkin’: Finding Summer Success
Fast Food and Fast Casual Favorites, Plus CosMc’s Takeoff
Chipotle and Sweetgreen: Fast-Casual in Q2 2024
First Watch, Texas Roadhouse, and Applebee’s: An FSR Roundup
Albertsons Companies: H1 2024 Recap
Teaming Up For Success: Sports Stadium Sponsorships
Limited Time Offers: Price Wars Boost Visits
Placer 100 Index for Retail & Dining: June 2024 Recap
Placer.ai Mall Index: June 2024 Recap
Placer.ai Office Index: June 2024 Recap
Inside Out 2: The New Blockbuster Bringing Crowds Back to Theaters
Petco and PetSmart: A Head to Head
Frozen Delights: Exploring Ice Cream Chains Across America
Placer.ai White Paper Recap – June 2024
Barnes & Noble: Writing a New Story
Small Format Stores - Sprouting, Blooming, and Expanding
Retail and Dining on Father’s Day
Thrift Store Visit Scores
Charting Value Grocery’s Visit Growth
Placer 100 Index for Retail & Dining: Introduction and May 2024 Recap
Digging Into Darden: Q2 2024 Update
2024 Retail and Dining Trends Update
TRU and avid: Midscale Hotels on the Rise 
Diving Into Kroger: A Strong Start to 2024
Placer.ai Mall Index: May 2024 Recap – Mall Visits on the Rebound
Placer.ai Office Index: May 2024 Recap
2024 Memorial Day Recap
Las Vegas: A Tourism and Migration Deep Dive
Eatertainment Chains: Full on Food, Fun, and Foot Traffic
The Promise of Luxury Apparel
Catching Up With Ulta Beauty & Gap Brands
Ollie’s Bargain Outlet and Five Below: Q1 2024 Treasure Troves
CAVA Still Going Strong
Driving Success: Auto Parts Chains in 2024
Checking in With DICK’S Sporting Goods
Mother’s Day Shopping and Dining Trends
Placer.ai Mall Index: April 2024 Recap – Retail Resilience Heading into Spring