In past decades, large shopping malls were the heart of commercial life in American and European suburbs. The mall was more than just a place to shop; it was a place for family gatherings, browsing the shelves, grabbing fast food, and watching movies. However, these stores are now experiencing what some describe as a "slow death." In the United States alone, more than 8,000 retail stores closed by 2025, and vacancy rates in some malls reached 40%, with projections indicating that 25% of large shopping centers will close within the next five years.
Reasons for the decline: Convenience and Experience
The reasons for this decline are numerous and profound. First, the rise of e-commerce has offered convenience, speed, and often lower prices. Amazon and other platforms have made clicking a button and waiting for delivery within hours a compelling alternative to a half-hour drive and searching for parking. Second, changing consumer habits have led to a preference for "experiences" over simply buying goods. The new generation spends its money on travel, restaurants, and events, not on accumulating items in closets.
From "Selling" to "Living"
Business analysis indicates that the stores that won't disappear are those that successfully transform from "places to sell" to "places to live." Traditional stores, reliant on inventory and product shelves, can't compete with Amazon in efficiency and price. The profit margin in retail now comes from "experiential retail," where customers pay for time and experience, not just the product itself.
Nike's model exemplifies this shift: its stores feature real-world sports fields where customers can try on shoes while playing, training facilities, and sports experts offering personalized advice. The price of the shoes themselves might not differ from online prices, but the customer pays for the experience and leaves with a product that truly suits them. Apple, for its part, built its empire on "generators"—on-the-spot support experts who solve problems and teach customers how to use their products, making the store a learning destination, not just a shopping one.
Malls Reborn
The most obvious transformation is happening within the malls themselves. These massive buildings, now almost empty of shops, are being transformed into mixed-use centers. Old retail spaces are being transformed into immersive cinemas, ice rinks, medical offices, mini-universities, or even warehouses for companies like Amazon to expedite last-minute deliveries. Some malls have become massive logistics hubs, where customers shop online and pick up their purchases within hours from their former parking lot.
This redevelopment preserves the property's value but fundamentally alters its function. The mall is no longer just a "place to shop" but a "place to be," where one can work, learn, be entertained, and shop all at once.
Back to Reality: From the Internet to the Sidewalk
From the perspective of purely online brands, we see a paradoxical trend of opening physical stores. Casper (mattresses), Warby Parker (eyewear), and Allbirds (shoes) have opened stores on high streets to enhance their brand presence and provide a tangible customer experience. For these companies, the store is not a place to generate big sales but rather a "living advertisement" that raises brand awareness and builds an emotional connection with the customer. The actual sales happen later online, but the physical store fosters trust and loyalty.
The Future: A Single Channel
In conclusion, the future of retail lies not just in online shopping or physical stores, but in the integration of both. Consumers want the ability to search and buy online, with the option to try, pick up, and return items in-store. They want to read reviews, then touch the product, compare prices, then consult an expert, buy online, and then exchange items in-store.
The stores that will survive are those that invest in skilled labor and interactive experiences, while those that only sell standard goods face the risk of complete extinction.
Retail in 2026 is not a battle between reality and virtuality, but a synchronized dance between the two, where the customer chooses what suits them in real time, and the winner is the one who offers this choice seamlessly.
