As the mall's place in consumers' lives changes, brands are left to focus on bringing people in through experiences and attractions, or on forging their identities outside of those retail spaces.

"A lot of people are going to malls, but they're not necessarily going there to shop," said our analyst Rachel Wolff on a recent episode of "Behind the Numbers: Reimagining Retail." Instead, people are visiting malls for restaurants, to socialize, or for experiential attractions.

Mall traffic shows signs of resilience

Mall traffic data shows surprising strength. Indoor mall visits increased 5.5% in January 2025, according to Placer.ai data—notable for what's typically a slower post-holiday month.

Consumers are using malls as social and experiential destinations rather than purely shopping venues, with 60% of Gen Zers visiting malls to socialize, per 2023 data from the International Council of Shopping Centers.

Some mall retailers thrive while others struggle

Forever 21 is filing for bankruptcy for the second time in six years. At the same time, Gap posted decent earnings.

Forever 21 is in a difficult position. "It's not cheap enough to compete with Shein and it's not high quality or fashionable enough…to compete with the likes of Zara," said Wolff.

Brands that are doing better are not relying on malls, according to Wolff. "Abercrombie and Gap have leaned off malls and opened smaller stores, getting closer to where their customers are."

Food and experiences become the new mall anchors

Perhaps the most significant shift in mall dynamics is what draws visitors. Seventeen of the 25 most popular mall brands today are restaurants—not traditional retailers, according to Yelp.

“Macy’s is still up there, but people are more interested in going to Starbucks or even a bubble tea cafe,” Wolff said. “That’s really becoming the draw as opposed to going to a department store.”

Beyond dining, experiential attractions are becoming crucial mall components:

• Limited-time brand activations and pop-ups
• Entertainment venues and VR experiences
• Service-oriented retailers like Apple's Genius Bar
• Special events like concerts and conventions

Major retailers are betting big on mall real estate

Some major retailers are completely reconsidering malls by acquiring them. Walmart recently purchased a mall in Pennsylvania for redevelopment into a mixed-use site combining retail, entertainment, dining, residences, and office space.

"It makes sense in terms of a strategy for a mall," Wolff explained. "If you live there, then you're going to shop there too and you're also going to eat there and possibly work in the same space."

IKEA has pursued a different approach, buying malls to become the anchor tenant while adding experiential elements like food halls and children's play areas.

The future mall

For malls to thrive, they must offer what online shopping cannot.

"Maybe the mall was the most convenient option before it was so easy to shop online, but it's never going to be the most convenient option now," said our analyst Emmy Liederman. "If it can't be the most convenient option, it has to be a fun option and it has to be a social space and it has to offer something that shopping online doesn't."

Listen to the full episode.

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