What will happen to malls in the future?

What will happen to malls in the future?

UBS researchers say that 9% of the 80,000 retail stores in the US will shutter across the country by 2026. They predict eCommerce sales will rise to 27% of the total retail sales by then, up from 18% today. Bad news for retailers signals bad news for struggling malls.

Is there a future for retail stores?

In the future, retail outlets will be multidimensional, with stores simultaneously operating as transactional, fulfillment, engagement and branding spaces.

What is the future of retail industry?

In 2022, worldwide retail sales are poised to grow 5% year-over-year (YoY) to exceed $27.33 trillion. Although ecommerce spending growth is expected to slow considerably—due, in part, to the rebound of brick-and-mortars—the channel will still account for more than 20% of total global retail.

Are retail malls dying?

The death of the shopping mall has been widely reported. Dying malls are seeing anchor tenants fail or flee, and the rise of e-commerce has led many shoppers to do much of their buying online instead of in-store. Physical malls and shopping centers seem to be a dying breed. Except where they aren’t.

How is retail doing in 2022?

Retail sales are expected to grow between 6% and 8% in 2022, as consumers spend more on services instead of goods and cope with inflation, the National Retail Federation said on Tuesday. That annual forecast represents a slower pace of growth for retailers than 2021, but it’s higher than the pre-pandemic growth rate.

Will shopping malls disappear?

A 2017 report by Credit Suisse predicted that 1 in 4 malls would close by 2022. That was before the pandemic.

Are malls coming back?

In 2022, however, multi-brand spaces are making a comeback. Shopping in malls, while still below pre-COVID levels, is on the rise again, with Black Friday shopping (the Olympics for us mallrats) last year up 83% from the year before.

Are retail stores dying?

And while it can feel apocalyptic if your store is closing, it might surprise you to hear that total retail sales in the U.S. were up more than 10 percent in 2021 to well over $5 trillion. Globally retail sales are projected to top $30 trillion by 2025. Data that puts the lie in the “retail is dying” narrative.