What: A Mall company CEO argues that, even in the US, malls are far from being dead.

Why it is important: Department stores are still seen as being key as anchors for malls.

The mall concept has evolved from merely a shopping destination to a vital community hub, as detailed by Brookfield Properties U.S. CEO Kevin McCrain. Amid widespread narratives forecasting the demise of malls, McCrain underscores that malls are not just surviving but thriving by adapting to consumer preferences and local market needs. Brookfield’s strategy involves curating experiences and retail mixes that appeal directly to local demographics, from luxury brands to entertainment options like miniature golf and VR gaming. This approach has proven effective across their portfolio, which spans over 130 malls in 40 states.

Despite challenges such as the rise of e-commerce, McCrain asserts that physical stores remain crucial for retail success, evidenced by digitally native brands establishing brick-and-mortar locations. He emphasizes that the traditional enclosed mall is still viable, contradicting claims that these need to be transformed into open-air spaces due to the high costs and limited impact of such renovations.

Moreover, McCrain discusses how department stores, historically anchor tenants, are still integral to malls despite some closures. Brookfield has actively redeveloped former department store sites into mixed-use developments, enhancing their malls' appeal and utility. This includes integrating residential units to create a more dynamic and integrated consumer experience.

Brooklyn Properties CEO: “The death of the mall was a myth”