Repurposing Anchors

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The new American shopping mall is less Macy's, more church, bowling, Barnes & Noble
CNBCยท 2025-08-09 12:30
Core Insights - The transformation of struggling malls, such as the Dayton Mall, is being driven by unconventional tenants like churches, which can attract community engagement and foot traffic [2][3][6] - The decline of traditional enclosed malls has been attributed to changing demographics, shopping habits, and the rise of e-commerce, but there are signs of potential revival through innovative repurposing strategies [7][8][15] - Successful mall redevelopment involves subdividing large anchor spaces into niche businesses that encourage cross-shopping, leading to increased revenue [10][11][12] Group 1: Mall Transformations - The Dayton Mall has faced challenges due to anchor store closures, leading to its receivership, but the sale of the former Sears space to Crossroads Church has revitalized the mall [2][4] - Crossroads Church has drawn thousands of visitors, including non-affiliated individuals, contributing to the mall's renewed activity [5][6] - The trend of repurposing anchor spaces is not unique to Dayton, as other malls are also exploring unconventional tenants to fill vacancies [6][12] Group 2: Industry Trends - The trend of repurposing empty anchors has been ongoing for over a decade, with recent data indicating a rebound in mall traffic as these strategies take effect [8][14] - CBL Properties' CEO noted that subdividing former anchor stores has significantly increased revenue, with some locations generating five to six times the previous amounts [11] - The incorporation of experiential categories, such as entertainment and dining, is becoming essential for attracting visitors to malls [13][15] Group 3: Consumer Behavior - Gen Z's affinity for malls as community spaces has been highlighted, with a shift towards seeking in-person experiences post-COVID [13][19] - Malls are increasingly being viewed as destinations for various activities beyond shopping, including seasonal events and dining [15][20] - The nostalgic connection many consumers have with malls is influencing their return, as they seek to recreate memories from their youth [19][20]