CONSUMER RETAIL AUTOS FOOD AND BEVERAGE RESTAURANTS FASHION GOODS RETAIL REPORT
Converting malls into multi-service mini villages may be the key to using unoccupied real estate in the retail market, said Amanda Nicholson, professor of retail practice at Syracuse University.
Instead, Nicholson suggested integrating residential units, health clubs, grocery stores and upscale restaurants into malls to create more experiences.
Nicholson said certain longstanding rules about how malls are run should be broken.
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Stephen Sadove, former Saks chairman and chief executive officer, said the key to creating mixed-use centers is location.
"The dog malls, these ones that are going away, they should go away," the founding partner of JW Levin Management Partners said of Class B and Class C malls, many of which are older properties in hard-to-get-to places. "Some of these should just be torn down."
Millions of square feet of unoccupied mall space are up for grabs, according to Nicholson, including parking lot space.
Police say two improvised explosive devices ignited near the JC Penney at the Eagle Ridge Mall in Lake Wales, Florida.
Source: Google Earth
Police say two improvised explosive devices ignited near the JC Penney at the Eagle Ridge Mall in Lake Wales, Florida.
Malls in the top Class A level will continue to grow, Sadove said on "Power Lunch.
Meanwhile, despite what some call the death of brick-and-mortar stores as more consumers shop online, retail sales as a whole grew 4 percent last year, Sadove said.
"The fact is that people are still spending money on eating and going out and shopping," Nicholson said. "They want to socialize.
"But they want to do it in a way that is fundamentally different than what we were doing 40 years ago in a one-level mall with a smelly food court in the center," she said.
With the new model of consumption focusing on the experiential, Nicholson said the retailers that provide consumers a way to "do more than just buy products are probably going to win this game."
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