What: Los Angeles’ major department stores and open-air malls are evolving through experiential offerings, luxury services, and mixed-use concepts in response to store closures and shifting market dynamics.

Why it is important: The shift toward mixed-use and personalised retail formats reflects broader industry trends of adaptation and resilience in the face of urban and economic pressures.

The retail environment in Los Angeles is experiencing significant change as department stores and shopping centres respond to evolving consumer preferences and the challenges of urban retail. The closure of longstanding stores such as Macy’s Downtown LA and Nordstrom Santa Monica signals a retreat from traditional flagship locations, driven by high real estate values and shifting shopping habits. In response, retailers are reimagining their spaces, integrating dining, wellness, and entertainment to create vibrant, multi-purpose destinations. Open-air shopping centres are increasingly designed as lifestyle hubs, blending retail with residential and leisure elements to attract a broader clientele. Luxury retailers like Saks Fifth Avenue and Nordstrom are enhancing their appeal through exclusive personal shopping services and curated experiences, targeting affluent customers with tailored offerings. These strategic adaptations underscore a broader industry movement toward experiential and community-focused retail, ensuring continued relevance and resilience amid ongoing disruption in the sector.

IADS Notes: Recent developments in Los Angeles reflect trends highlighted in several sources: the transformation of department stores into mixed-use retail destinations (Retail Week, Sep 2025), the surge in experiential retail to attract customers (Los Angeles Times, Mar 2025; The Economist, Apr 2025), and the repurposing of flagship locations due to changing consumer behaviors and real estate pressures (The Robin Report, Mar 2025; Forbes, Mar 2025). The evolution of luxury retail with enhanced personal shopping and exclusive experiences is evident in Saks Fifth Avenue’s and Nordstrom’s new service models (Fashion United, Feb 2025; Financial Times, Jul 2025; WWD, Feb 2025), while Simon Property Group’s micro spaces and open-air mall strategies (VMSD, Sep 2025) further illustrate the sector’s shift toward flexible, community-focused formats.

Los Angeles’ department stores and shopping centres are transforming formats and services