Gone are the days when the mall was a place to gather.
That’s the conventional wisdom, as malls around the country fell into decline over the past 30 years.
But are malls truly the dinosaurs of retailing? Some experts think not, and several vibrant Oakland County malls are examples of how they can remain a relevant shopping option.
Locally, Lakeside Mall in Sterling Heights closed for good on Sunday, June 30. In recent years, foot traffic dropped and tenants departed from the nearly 50-year-old mall. Most of it will be demolished to make way for a new development containing residential, retail, office and recreational components.
At least half a dozen Oakland County malls have closed since 2000: Winchester, Great Oaks and MeadowBrook Village Mall in Rochester Hills; Summit Place in Waterford Township; and Northland Center and Tel-Twelve in Southfield. MeadowBrook was turned into the Village of Rochester Hills, an outdoor shopping center, in the early 2000s.
BUCKING THE TREND
Several malls in Oakland County have their own distinct personalities, and that’s a big part of their success, said Janell Townsend, professor of marketing and international business at Oakland University.
Stepping inside Twelve Oaks Mall in Novi, you see brisk foot traffic and even busier vehicular traffic around the mall.
General Manager Dan Jones said a number of factors keep the mall desirable, including an “ever-evolving tenant mix.“
Destinations like Apple, The Cheesecake Factory, Crate & Barrel, lululemon and the recently-opened Anthropologie clothing store create an environment where shoppers and tenants thrive, he said.
“Shoppers want to be at Twelve Oaks, so tenants want to be at Twelve Oaks and vice versa, Jones said.
The Somerset Collection in Troy has branded itself as an upscale destination shopping center, attracting visitors from outside the Detroit area, Townsend said.
Somerset is the only Michigan location for two department store chains: Saks Fifth Avenue and Neiman Marcus. Other niche store chains maintain their only Michigan store at Somerset as well.
“Somerset is often the first, and exclusive location in the state for these global brands,” said General Manager Kathryn Millea, in an email.
“This approach to retail, along with offering exceptional dining options and one-of-a-kind experiences, has allowed Somerset Collection to continue to attract and engage guests,” she said.
Great Lakes Crossing Outlets in Auburn Hills offers name-brand items at discounted prices. It has also become a destination for family fun, adding attractions like Sea Life Michigan Aquarium and Peppa Pig World of Play, Townsend said.
A young entrepreneur, Mario Kiezi, bought Oakland Mall in Troy two years ago and pledged to increase foot traffic and transform it into a family destination. Neither Kiezi nor mall management could be reached for comment.
The mall’s Facebook page recently announced several new tenants, including attractions for children.
Area malls declined to release occupancy rates, but data from the International Council of Shopping Centers shows average occupancy nationwide at 89.5%.
Occupancy rates have been consistent since at least 2020, according to the ICSC.
“Three in five Gen Zers, a large generation growing into their spending power, say that they visit malls just to socialize or meet friends, even if they don’t need to purchase something specific,” said Stephanie Cegielski, ICSC vice president, research and public relations.
“As consumers continue to view malls as opportunities to socialize and spend time together outside of their homes and workplaces, malls are increasingly expanding their service and entertainment offerings to meet these consumer needs,” Cegielski said in an email.
IN-PERSON V. ONLINE SHOPPING
In-person shopping will always have a place in retailing, Townsend said. Every online shopper has experienced the dismay of receiving an order and finding an item doesn’t fit or didn’t fulfill expectations. Suppose the shopper has a quickly-approaching event to attend, nothing appropriate to wear and no time to reorder.
A mall is going to offer that shopper a lot of choices and the ability to obtain merchandise immediately, she said.
Online shopping grew in popularity during the pandemic, said Townsend from OU. But when stay-at-home requirements were lifted, people wanted to congregate in places like malls, she said. In-person shopping made a comeback.
The future of shopping is “going to be a mix of bricks and clicks,” she said.
Most estimates put ecommerce at 15-20% of all retail sales, said Jones, of Twelve Oaks Mall. And the percentage of items returned from online purchases is highest among apparel retailers, which brings shoppers back into stores, he said.
THE FUTURE OF MALLS
Two factors will keep malls relevant, Townsend said.
– Malls should be places where shoppers can “run in quickly and get what they want,” she said. That may explain the popularity of smaller shopping centers like the Village or Rochester Hills, she said. The “behemoths” of the past may struggle, she said.
– Malls need to make shopping an experience, with family attractions, lots of dining options or unique stores.
The future of malls may look more like the development planned for the former Lakeside, with everything people need within a few minutes, she said.
A mixed-use development is also underway at the former Northland mall.