Struggling mall retailer closes stores, shares turnaround plan

Core Insights - American consumers have shown a significant rebound in mall foot traffic in October 2025, indicating a potential resurgence in consumer enthusiasm ahead of the holiday season [1][2] Mall Performance - All mall formats experienced year-over-year visit gains in October 2025, with indoor malls leading the growth, while open-air shopping centers and outlet malls also returned to positive traffic after four months of decline [2] - Month-over-month data revealed a sharp increase in visits: 6.1% for indoor malls, 5.5% for open-air shopping centers, and 7.9% for outlet malls compared to September 2025 [3] Consumer Behavior - The increase in foot traffic suggests that consumers may be starting their holiday shopping early or are actively seeking deals [3] - However, increased foot traffic does not necessarily correlate with increased spending, as evidenced by Bath & Body Works' strategy of closing mall locations while maintaining cash flow positivity across its store fleet [4] Bath & Body Works Strategy - Bath & Body Works has been actively shifting its store locations away from malls since late 2022, with a goal of achieving a store distribution of approximately two-thirds in malls and one-third in off-mall locations [5][6] - The company reports that 99% of its stores are cash flow positive, indicating no financial challenges within its real estate portfolio [5]