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American shopping malls will close at alarming rate over next 10 years

By Amanda Levine,

For anyone who loves to hang out at their local mall or go on amazing shopping sprees will be sad to know that American shopping malls have been slowly failing for years.

Ever since factors such as the decline of the economy and the rise of online shopping have taken over the nation, local shopping malls have been struggling to be successful and it has resulted in the closing of hundreds of malls. These closings occur mainly in the Midwest and also usually happen to malls that don’t have higher end stores such as Neiman Marcus of Sacks Fifth Avenue.

Business Insider noted in January that about 15 percent of malls will close or be converted into non-retail space within 10 years.

"Middle-level stores in middle-level malls are going to be extinct because they don't make sense. That's why we haven't built a major enclosed mall since 2006," Howard Davidowitz, chairman of Davidowitz & Associates, Inc., a retail consulting and investment banking firm, told Forbes.

BBC Noews reports that some of the decline started in the 1990s when fearful women stopped going to the malls after the rise of a more punk youth generation began in the 90s.

Whatever the reason for the decline of these malls, many malls will close down to make space for large education, health and business buildings.

 

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