Thursday, December 19, 2024

Are malls making a comeback? 2024 shows positive signs for shopping centers

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LEXINGTON, Ky. (LEX 18) — Hundreds of malls have been forced to close over last two decades as online shopping and a pandemic took a toll on brick-and-mortar retailers. This year, malls including Fayette Mall in Lexington, are seeing signs of improvement.

Crowded commons, busy stores and full parking lots are usual sights this month at Fayette Mall.

Shoppers, like Laura Howard, are busy getting their holiday shopping out of the way at the shopping center off Nicholasville Road.

“It’s been a few years since I’ve been here,” Howard said, explaining that during the pandemic, she turned ton online shopping instead.

This year, she decided to make a day of shopping in person.

“Online shopping is good, but there’s no personal touch to see the stuff, see exactly what you’re buying,” she said.

She isn’t the only one making their way back to in-person shopping after a few difficult years for malls around the country.

According to a report from the Federal Reserve of Richmond, the number of malls in the United States dropped from 1,500 in 2005 to 1,150 by 2022.

Many other reports projected the number would be even lower within the next decade.

Malls, however, may have found their stride again.

According to CBL Properties, the company that owns Fayette Mall, its roughly 80 shopping centers across the country are going strong.

Fayette Mall is one of the top performers. Currently, officials report full capacity of the mall’s retail space.

CBL reports an 89.3% occupancy rate across its portfolio, as of the third quarter of 2024, which is an increase over last year.

Fayette mall also saw an increase in sales of 3% over the first three quarters of 2024 over the first three quarters of 2023.

“Since COVID, things have gotten progressively better. This year is probably the year that we got back to before COVID times,” said Joey Maldonado, store team leader at Amercian Eagle.

Maldonado’s store reported a 13% increase in sales last week compared to the year before.

Victoria Dever, store manager at H&M, said traffic in the store this Black Friday was up from last year as well.

“It restores a little bit of faith. Things got a little dismal there for a while,” she said.

A CBL spokesperson said Fayette Mall’s prime location, it new experiential retail spaces, and the demand for the in-person experience is driving people back to mall shopping.

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