Valley View Mall located in La Crosse, WI, has been a hot spot for shoppers in the area for many years. Over the last 10 years stores slowly started to close or move out causing the mall to decline in popularity. Parking lots and food courts used to be packed, now you will hardly find anyone in the mall. It’s more like a library these days rather than a mall with were all used to. Three main reasons have caused the mall to foreclose.
First off, the growing popularity of E-commerce and M-commerce have created so much competition that is hard to compete with. A lot of companies can strictly operate on these platforms and make more of a profit, because they are not paying rent, overhead costs, or employee salaries. In a brick-and-mortar setting, hours of operation are limited whereas online shopping is 24/7. Online shoppers are not restricted to a specific area, they can order from anyone, anywhere. On the E-commerce end, it’s the same concept, a business can ship to anyone, anywhere. E-commerce and M-commerce tend to be more convenient for the customer, there tend to be better sales and more product selection, it’s easier to browse with filters such as size or color, resulting in a better shopping experience.
Covid 19 has caused lockdowns almost worldwide, this was a major setback for business owners, causing many to take on debt, file bankruptcy, and many even went out of business. It was also hard for consumers as they couldn’t work and had to scale back on spending habits, buying only what they need to survive. Businesses have since adapted, offering ways to shop safe, such as: curbside pickup. An option to buy online and have the items brought directly to the customer upon arrival.
Big name department stores such as Sears, JC Penny, and Macys have closed their doors at hundreds of mall locations. This directly affected foot traffic throughout the mall as these were popular stores that attracted a lot of customers. According to an article by (CNBC) “Sears and K-Mart once operated over 3,500 stores.” In 2018 stores started to close adding further insult to industry to malls across the US. According to an article by (Forbes) “Today, multiple reports say there are just 23 Sears full-line stores still open for business.”
E-commerce, covid 19, and big-name retailers going out of business or moving, are a few of the core challenges and competition that malls are facing. This leaves mall owners to get creative and re-strategize layout, operations, and how they can draw customers back to the mall. So, what are some ways they have come up with?
Photos of Abandoned Malls
Solutions For Reviving Malls
According to (Forbes) some of the strategies for reinventing the mall include, “reinventing themselves as integrated lifestyle hubs — adding yoga studios, medical clinics, and microbreweries — populated with more upscale shops…. a 15-year, $5 billion shopping center that will be completed next spring in East Rutherford, N.J. — will feature indoor ski slopes, a water park and aquarium alongside 350 stores, including Hermès, Uniqlo and Zara.”
Although the Valley View Mall may not have the budget to go above and beyond, they could reinvent themselves in many ways. Bringing in higher end stores such as Lululemon and Apple would be a good fit for our local mall. Apple is sure to pull in almost all demographics and Lululemon will attract millennials, high schoolers, and middle-aged mothers.
The food court could also use a makeover, bringing in higher end restaurants with outdoor seating and possibly a balcony to sit on a nice day. I think having options for food spread-out throughout the mall and not just in a singular location could also be beneficial.
As for attractions a dog park, aquarium, or a venue would be a good fit for Valley View Mall and it would attract a lot of foot traffic leading to more spending, especially in the food court.
There are many strategies and approaches malls all over the US can take to revive the malls and bring them back to life. Market research and knowing what consumers in your area want to see in the mall is critical to bringing back the mall. It’s also important to have a set budget and to not over/underspend. Knowing data and expected growth and revenue will help guide these decisions. The four P’s: product, place, price, and promotion are all points of research, along with demographics, psychographics, spending habits, income level, and marketing strategy, are all areas that should be researched before any plan is put into place.