What: The transformation of US malls is marked by a widening gap between thriving luxury and experiential centres and struggling class C/D properties, as traditional anchors decline and real estate is repurposed for new uses.

Why it is important: The bifurcation of the mall sector demonstrates that operational agility, community integration, and a focus on customer experience are now critical for long-term retail success.

The US mall landscape is undergoing a dramatic transformation, with a clear divide emerging between high-performing class A malls and declining class C and D properties. While luxury and experiential malls like King of Prussia and Roosevelt Field are thriving—attracting affluent shoppers, luxury brands, and innovative tenants—many older malls are facing demolition, repurposing, or conversion to mixed-use developments. The collapse of the traditional department store anchor model has accelerated this shift, as legacy brands disappear and remaining anchors no longer drive traffic or profitability. Landlords and developers are responding by investing in experiential retail, flexible leasing, and community-focused amenities, while struggling properties are being sold off or redeveloped for residential, entertainment, or open-air retail uses. This bifurcation reflects broader changes in consumer behaviour, with wealthier households fueling the success of premium malls and lower-income shoppers gravitating toward discounters and second-hand stores. The future of US malls will depend on operational agility, the ability to create compelling experiences, and integration with local communities, as the sector adapts to new economic realities and evolving shopper expectations.

IADS Notes: The current bifurcation of the US mall landscape is well documented in recent IADS sources, which highlight the stark divide between thriving class A malls and struggling class C/D properties. As reported by The Robin Report in March 2025, department stores are abandoning historic downtown flagship locations as real estate values and changing consumer behaviours drive a fundamental transformation of urban retail. Macy’s, Neiman Marcus, and Bloomingdale’s have all closed major city centre stores, with prime real estate increasingly repurposed for mixed-use developments. The Economist (April 2025) and Los Angeles Times (March 2025) both confirm that premium malls are experiencing a resurgence, driven by experiential retail, youth engagement, and strategic repositioning, while weaker malls face decline, demolition, or conversion to open-air and mixed-use formats. Simon Property Group’s $1.3 billion in redevelopments and Walmart’s acquisition and transformation of mall properties underscore the trend toward community-driven, flexible retail environments. Retail Dive (August 2025) and VMSD (September 2025) further illustrate how department stores like Dillard’s are taking an active role as both retail anchors and property stakeholders, investing in the revitalization of regional malls. Collectively, these sources demonstrate that the future of US malls will be shaped by innovation, experiential offerings, and the ability to adapt to evolving consumer expectations, with successful properties focusing on premium positioning, community integration, and mixed-use redevelopment.

The reinvention of America’s shopping malls