For many years, malls across America have seen a drastic decrease in business, for a number of reasons…

And matters only seem to be getting worse.

 

Why are malls suffering?

Over the past 20 years, with the prevalence of the internet, online shopping has increased exponentially. 

According to the Census Bureau, online sales have risen from roughly $5 billion per quarter to $155 billion in recent years. 

However, there are also a number of other reasons that are contributing to the decline of mall shopping, besides people simply choosing to shop online.

 

The New York Times outlined three prominent factors, which are:

  1. Big Box Stores

People aren’t browsing small shops anymore. 

They’re doing their shopping through bigger conglomerates, like Amazon, Costco and Sam’s Club.

 

  1. Income Inequality

Retailers generally aim their marketing at the middle class.

However, income inequality has left less money in the hands of the middle class than ever before, and malls are being hurt as a result.

 

  1. Services Instead of Things

Americans are spending less money on things, and more money on services.

We aren’t buying products sold in traditional stores, we’re purchasing experiences, entertainment, education, business services, etc. 

 

Another HUGE blow…

However, there is another giant factor in the recent decline of malls, and it has only become an issue over the past couple of years: the Covid-19 pandemic

Malls across America had to shut down for a time, people were told to stay home, and everyone became afraid to attend public spaces for fear of contracting the virus. 

And on top of that, online sales skyrocketed even further, as people stopped going to malls (or leaving their homes) altogether. 

 

A thing of the past?

Although it feels like things are starting to go back to normal in the Treasure Valley, our malls have taken a giant hit from the coronavirus and its lasting effects. 

It leaves us wondering: what does the future hold for our own Boise Towne Square Mall?

Will it be able to rebound from these disastrous setbacks, or will it eventually be forced to close down for good?

How long until it is just another reminiscent memory from the “good old days,” like Blockbusters and Radio Shack?

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