Dark

Why U.S. Malls Are Disappearing

CNBC
Subscribe
Views 2 044 483
96% 19 752 693

Shopping malls in the U.S. were already in decline before the Covid-19 pandemic as consumers shifted away from traditional brick-and-mortar stores to e-commerce. The outbreak has only exacerbated the challenges at malls as social distancing has placed restrictions on stores, movie theaters and restaurants. So what will become of malls in America after the pandemic ends?
Shopping malls across the U.S. have been reeling as restaurant and retail tenants struggle to keep their doors open.
Data compiled by Coresight Research shows about a quarter of U.S. malls could close over the next three to five years, accelerating a trend that began before the pandemic.
Simon Property Group - the nation's biggest mall owner - said earlier this month that its fourth-quarter revenue dropped by 24% on a year-over-year basis to $1.1 billion.
However, some analysts think Simon - with its portfolio of A-rated malls and a healthy balance sheet - will benefit as distressed malls operated by its rivals close their doors. The company is also expected to see gains from new additions like hotels and luxury residences.
"Unfortunately there are a lot of centers that don't fit that high profile and that have lost their competitive edge," said Piper Sandler analyst Alexander Goldfarb. "The thing about Simon is they've been really focused on maintaining it, and that's both been through a combination of culling the lower productive centers as well as making sure that they keep investing in their top centers."
Simon Property Group CEO David Simon said the company is also getting a lift from increasing traffic at some of its locations and from tenants paying their rent on time.
Malls are a big tax driver for the communities they serve and employ lots of people locally. Watch the video above to find out more about the struggles U.S. malls face and what could become of them after the pandemic ends.
» Subscribe to CNBC: cnb.cx/SubscribeCNBC
» Subscribe to CNBC TV: cnb.cx/SubscribeCNBCtelevision
» Subscribe to CNBC Classic: cnb.cx/SubscribeCNBCclassic
About CNBC: From 'Wall Street' to 'Main Street' to award winning original documentaries and Reality TV series, CNBC has you covered. Experience special sneak peeks of your favorite shows, exclusive video and more.
Connect with CNBC News Online
Get the latest news: www.cnbc.com/
Follow CNBC on LinkedIn: cnb.cx/LinkedInCNBC
Follow CNBC News on Facebook: cnb.cx/LikeCNBC
Follow CNBC News on Twitter: cnb.cx/FollowCNBC
Follow CNBC News on Instagram: cnb.cx/InstagramCNBC
#CNBC
Why U.S. Malls Are Disappearing

Published on

 

Mar 4, 2021

Share:

Link:

Download:

Loading link...

Add to:

My playlist
Watch later
Comments 100
Gab fromearth
Gab fromearth Hour ago
lies!
Neil Puckett
Neil Puckett Hour ago
The fact that all of those stores were full of made in China garbage didn't help.
David Oisten
David Oisten 3 hours ago
Propaganda
MEND New Zealand
MEND New Zealand 3 hours ago
Hey...Make America Give Again ...turn malls into housing for the homeless!! Give all US citizens a roof over them? Or let people rent space for workshops?
Arcadia
Arcadia 4 hours ago
What will become of all the mall rats?
Ceadda
Ceadda 12 hours ago
Far less people have expendable income; especially younger gens. You can adapt a mall all you want to adjust to tastes of shoppers today but if they don't have the money then they're buying their products direct from Chinese warehouses on Ebay to skip the retailer altogether. And Trump's ideal to raise import taxes on these goods is short sighted, it just means less people can buy anything. You have to get money more free flowing and circulating.
Tracy Nation
Tracy Nation 20 hours ago
An excellent video. 💙 T.E.N.
Jenna
Jenna Day ago
What I am seeing disappearing ...Malls (as listed)...cable tv...traditional phone lines and phones...non electric shaving blades...and last but not least the flat oversimplified logo trend that was overdone from 2005-2020.
Mark John Thompson
anonymous sources CNN / newyork time admitted had stand behind shooting in the US, is democratic party staging the killer violence. for bill on tightening gun control. and closed the second amendment Constitution of United States of America 1789. of plans to hold armed demonstrations prior to Election Day (remember all democrat party communist alway create chaos 2020) even cheater they have doing anything they want ? The underworld WILL let MANY keep going about shooting killings more state ......
D T
D T Day ago
Build condo's above the mall in a nice area with a park. Ensure there is a decent grocery store, nice restaurants, theater etc..
Mark Douglas
Mark Douglas Day ago
No one cares.
Maro-Mohamed Elkastawy
Malls never try to keep a prestige when people are going around. They let workers spray cologne in someone's face as they walk by and they creep on people with hand held massage machines. Let's not forget the bootleg products all over the place...
Eric Siegmund
Turn them into parks
Syeda Anjum Exposing The Truth
1 % global elite cult is accelerating people towards ''online shopping'' because 1 % global elite want digital world which can be easily control by ''them'' with digital technology making us prisoners in our homes and yes fake pandemic is also the part of this big stupid agenda : humanity should wake up
Jeffrey Knight
First of all Alice looks very cute. Malls are like the old down towns. They use to be packed until the mall era came along. The mall's are getting their own taste of losing people. Online and big box stores are killing the malls. Like the malls did to down towns. What goes around, comes around..
OneHorseTown
OneHorseTown Day ago
They were all looted in 2020. They don’t have the protection needed to keep the business going.
Steven Fanale
We are now seeing the end and we have the Democrats to blame.
R. Lewis Grover
Turn the empty malls into government run hospitals, we need them
Gordon Ashacker
Maybe malls could be converted to house the homeless.......
derrill yager
Good place for providing a place for many homeless people to live. They could be remodeled into apartments or community centers that provide temporary housing that could get people off the streets and into better situations with social workers helping people locate jobs with daycare..... Just think of the possibilities to better our cities and communities.
riptorn
riptorn Day ago
Agenda 21
Norman J. Murk Jr.
... because of Amazon and the like. They should be shut down.
Fried Mac
Fried Mac 2 days ago
Mini mom and pop strip malls are on the rise. Fyi: 2021 📝📝📝📝📝
Glenn Lego
Glenn Lego 2 days ago
CBL owns Cherryvale Mall Southeast of Rockford Illinois. It is nearly empty now that Sears, Penney, and Bergners are gone.
Patrick Saxon
Patrick Saxon 2 days ago
Amazon has been buying these dead malls, as on line shopping has been taking the place to the store front. Sadly many manufactures are still requiring store front which are very expensive for commercial retailing stores.
yh h
yh h 2 days ago
Internet markets !
Anthony
Anthony 2 days ago
Amazon.....
A Person
A Person 2 days ago
Its easy, going to the mall.. the hour in traffic, the huge crowds, the high prices of all goods, the lack of products in your size or taste. The extra hour in traffic getting home. Versus going online, finding a discounted price at around 25-70% off the mall price, the exact item you want, the exact size and color, and at the beginning, we didn't have to pay sales tax (now we do). The only downside is the 1-14 days of waiting time for the product to arrive. Only hope for malls are to turn them into social events. Live music, live theatre, live whatever.
Matthew Ellul
Matthew Ellul 2 days ago
they are closing to reduce the amount of space needed for after the genocide is carried out. see you later usa, gates gonna erase most of your population
Jane Doe
Jane Doe 2 days ago
Malls are unsafe!! There are creepy people and germs everywhere!!!. It’s much safer buying online!!! Glad to see malls declining!!!
michelle flick
michelle flick 2 days ago
How about turning malls into senior living centers with rental units, dining centers, medical units/pharmacy? Turn the parking lots into outdoor markets. Turn part of the lots into farming lots and flower growing areas (rent them too). Put in small theater. The possibilities are endless. The boomer generation lived there when kids grew up; they would likely feel at home there.
Asson Amor
Asson Amor 2 days ago
Meanwhile in my country.. Malls r the only place we go to cool ourselves haaaa.. It's hot out there bruh...
James B. Rox
James B. Rox 3 days ago
Humans will always need other human contacts, the lockdown has just proved it.. The malls aren't so much for shopping, it's more like hanging out, spending time with friends and family. People will look for something else should the malls disappear, I just don't know what will that be..
Emmet Ray
Emmet Ray 3 days ago
Uh... Walmart? Even without online shopping. Malls used to be the place to go to see a movie and browse while getting some good walking exercise. Now people sit and watch their movies on their laptops that they got off bittorrent or netflix while eating doordash.
G Mercer
G Mercer 3 days ago
Good. bulldoze all the malls and return the farm land to food production.
Orman Virsel
Orman Virsel 3 days ago
an interesting video, A pity the guy spoke so fast he sounded like a blurrbing miget
Mr. Nice Guy 85
Mr. Nice Guy 85 3 days ago
meanwhile in china.....
Brian Nancy Low Tay
Who caused it to this end to x indefinite?
Friedrich Wilhelm von Steuben
I'll give you a hint, it starts with the letter N
Friedrich Wilhelm von Steuben
@Bumblebee cheeky, 2 pts for Azkaban House
Bumblebee
Bumblebee 2 days ago
Neanderthal?
Eduardo Luyun
Eduardo Luyun 3 days ago
US must confront China regarding the Virus spread.No money in US no prosperity .China rise and 1 world power.
Caveman Hikes
Caveman Hikes 3 days ago
What's the obsession with using off screen interviews with bad audio? Every news agency does this intentionally. To make it sound more raw or something.
Thais Magalhães
Thais Magalhães 3 days ago
The only reason I go to a mall is if I want to watch a movie (it's the only cinema near me) or if I want to buy something and don't want to wait for delivery. Other than that I see absolutely no reason to leave the comfort of my house.
elias mora
elias mora 3 days ago
wen new generations get tired of online shopping the mall will return.. in 20 years
Witt Wittwer
Witt Wittwer 4 days ago
This was an interesting video, but the annoying background music spoiled it for me.
turquoise M
turquoise M 4 days ago
They should copy how mall works in Asian countries, where more than half mall attraction are good varieties of restaurant and food court, also instead of depending on macys, they should work with groceries like trader's joe to open inside the mall.
Máire Daly
Máire Daly 4 days ago
It's interesting they're adding apartments.... it's like things have come full circle, where folk live near where they shop... and may not need to have x2/3 car households. In fact, they're turning into.... towns
Michael Heider
Michael Heider 4 days ago
Top down management with no considerations for unique locations. Shopping at Amazon is easier. Love going to the local down town area that has been revitalized.
nice one
nice one 4 days ago
FEMA camps!
Stag van Heuten
Stag van Heuten 4 days ago
Always hated shopping malls. Phony atmosphere geared towards draining you of your money. Consumerism is hell.
The Memory Traveler
Why can’t empty malls be changed to basic apartments????
Osya Sa
Osya Sa 4 days ago
Horrible pronunciation almost all of u people. U have to attend one or two classes
Paintboy
Paintboy 4 days ago
Build a human space with trees and lawns. Malls killed small businesses.
Rod Hoover
Rod Hoover 4 days ago
Homeless Communities. Perfect Solution.
Ariana Garcia
Ariana Garcia 4 days ago
I don’t care for malls I hate malls since you have to walk so far to get to a store half the time and I stay at the mall for 4 hours or less every time my mom takes me since she loves shopping and just so you know now I hate shopping for all those reasons.(Sorry that it’s so long)
Atholl Moray
Atholl Moray 4 days ago
I am very sad to hear the mall’s doing not so well. To me walking around, seeing the people and all is half the experience and really enjoy shopping and being among my fellow Americans.
Brianna B
Brianna B 5 days ago
In my area malls are doing pretty. It’s also due to the nice variety of stores and the atmosphere. They look really nice. I still see a lot of teens hanging out and there’s usually a lot of people. Especially on weekends they get packed with people. Hard to find parking. I honestly love malls. I love shopping for clothes and being able to look at them in person. Also because I hate having to wait for things to deliver. The only mall in my area that isn’t doing as well is because there isn’t a lot of activities to do beside shopping. My other 2 local malls have not only shopping and dining options, but also fun things like the movies, arcade, etc. The mall is still doing very well but not as good as it could. Hanging out with your friends at the mall is one of the best things to do as a teen. I’ve had so many fun experiences with my friends.
Ken Fu
Ken Fu 5 days ago
because the 80's are over
Erik de Vries
Erik de Vries 5 days ago
Now is the golden opportunity to re-purpose these structures. Housing the homeless in a safe, contained environment, complete with mental health services and/or drug treatment centres comes to mind.
KytZu 2
KytZu 2 5 days ago
My country still has bustling malls lmao, we'd rather go to the shopping complex than to buy them online. Also arcades are still maintained here.
Nelson Gonzalez
Nelson Gonzalez 5 days ago
A way of life 😉 is disappearing... many retailers and small businesses are going out of business. The end of an era in North America and beyond.
William Mayer
William Mayer 5 days ago
I buy, mostly books and DVDs, online. However, I like to go to malls, try on clothing I am interested in buying, and just hang out and mingle among people. With malls gone, I am going to miss that part.
Michael James
Michael James 5 days ago
our parents and grandparents were so lucky to grow up when they did. life is pretty much a big turd lately.
kaal
kaal 9 hours ago
F#cked up actually..
Jade Spin
Jade Spin 5 days ago
Things will keep getting even worse.
Rosalia Bonayog
Rosalia Bonayog 5 days ago
It will come back just be patient.Life is fun.God speed.
jeydii kyeot
jeydii kyeot 5 days ago
In the Philippines, the mall culture still lives on
Alex Victor
Alex Victor 5 days ago
People blame Amazon for the decline but prior to the pandemic it was the Wolf packing, the mean mugging babies thugs in training trying to intimidate people, being loud & obnoxious.. So the malls had to set up all kinds of rules & regulations because some people were never taught how to act properly in public.. These people just ruin everything for everybody... All you have to do is search on RUvid or Google about fights in the malls & you'll see exactly what I'm speaking about...
Itachi Uchiha
Itachi Uchiha 5 days ago
0:52 they can make casinos
melissa Diane
melissa Diane 5 days ago
Because Amazon took over
Mo Cuishle
Mo Cuishle 5 days ago
0:16 That's a mall called SaiGe in my city Xi'an, China. wtf is that footage doing here?
TougeRuzbay
TougeRuzbay 6 days ago
Still remember my days at the mall near my house in 2000s till 2018 and from there I barely kept going there cause the environment changed.
Shawn Xu
Shawn Xu 6 days ago
Mall should transform itself to offer a shopping experience. I mean better food, more expensive brands and other high end stuff.
TJ of Someplace
TJ of Someplace 6 days ago
Malls are dying because they are over built. Local politicians built them at record paces to gain political capital for their next position. Malls never generated enough tax revenue to pay for the infrastructure needed to serve them. Similar to suburban developments that offer urban services like sewers and gas lines at rural population densities. What happened with malls is you have unsustainable retail practices, unsustainable housing practices, looming maintenance costs and a declining lower middle class. What this is is a perfect storm against malls and suburbs at large are next.
Derek Hauser
Derek Hauser 6 days ago
Hint: wages are low as heck and people are just trying to pay the bills
Rafael Villamor
Rafael Villamor 6 days ago
Globalist should all be held accountable for all this SCAMdemic that happened. Liberals should all be skinned alive!
Bongso Kusuma
Bongso Kusuma 6 days ago
the suburbs malls are boring and ugly. thats why... lool
Jeff C
Jeff C 6 days ago
online shopping, e-commerce problem. This topic was hot in China one decade ago, now people get used to it.
Isaiah Olvera
Isaiah Olvera 6 days ago
They used to be fun when I was in high school. Now they are just crawling with kids asking questions for their RUvid channel with 300 subscribers.
Robert Stewart
Robert Stewart 7 days ago
Taxes are reasons. Senate gave certain corporation apass in exchange for free stocks the small business are paying full deal
EF ANDMK
EF ANDMK 7 days ago
I support small businesses. During Covid, I've stopped shopping at places like Lowes, and, instead started to shop at Ace Hardware (the stores are franchises). I've started tp do "pick ups" at Target and Safeway. I've found that surprisingly convenient. I've also discovered Amazon and Ebay to be really great resources. And remote visits with the doctor to be adequate. I like getting my prescriptions in the mail. I may NOT revert back to the old way of doing things after the pandemic is over.
EF ANDMK
EF ANDMK 7 days ago
Retail tastes shift every 20 years of so. Examples: In the early 20th century, is was stand alone stores and catalogue shopping. In the forties, stand alone stores and some chains started to appear.. In the fifties, the strip mall was invented. In the sixties, the indoor mall was invented. In the seventies, we had big box stores, strip malls and indoor malls. In the eighties, nineties and two thoudandsies, we had a combination of indoor malls, strip malls, big box stores, and stand alone shops. Currently, it's stand alone stores and strip malls, and online shopping (catalogue shopping again?). Big box stores and indoor malls are dying quickly, save for home improvement centers and that sort of thing. I think the reason that big box stores and malls are dying now, is the walking involved in shopping them. Considering that most Americans now, cannot see their genitalia without a mirror., or walk more than 50 feet before needing a nap......do the math. Moo. After Covid, we really do need to help out small business owners. Who want's to live in a world where everything is a chain?
Rick Mahnn
Rick Mahnn 7 days ago
The retail industry CRASHED because of poorly designed stores, terrible parking, lack of Variety.
dantae666
dantae666 7 days ago
Convert it to housing. sounds like america could do with more homes like the UK
Adam Marks
Adam Marks 7 days ago
Probably owned and operated by DemonRats. All those people know how to do, is BASTARDIZE EVERYTHING.
Rogelio Llerenas
Rogelio Llerenas 7 days ago
The united states is such a disappointment
DanL57
DanL57 7 days ago
The picture of the former Sears store looked rough.
Dfw Fqdefqw
Dfw Fqdefqw 8 days ago
The malls can rot in hell. I am delighted to see them going the way of... the things they destroyed.
Nakita Tillis
Nakita Tillis 8 days ago
I hope they never close the Glendale Galleria or Westfield mall in Canoga Park. I have wonderful memories in both places.
Pete Guard
Pete Guard 8 days ago
Edina, not Edeena Like Dime, Dine, Dive,
John Oliver
John Oliver 8 days ago
Bezos......👏👏🥳
mike m
mike m 8 days ago
Amazon.
John Oliver
John Oliver 8 days ago
Get ready for a larger Pandemic!
Benjamin Gal-Or
Benjamin Gal-Or 8 days ago
Why many helplessly die for lack of UN GLOBAL CORONA CZAR, UN-GCC? 5-Months-114-countries I follow by WHO-JHU CDR, CORONA DEATH RATES. Country-To-Country, CTC, VIRUS SPREAD Control is UN SECURITY COUNCIL JOB. Under international law, the sole body to mandate WHO UN-GCC in our common global war against the virus enemy, YES, is UN SECURITY COUNCIL JOB. So do it. A. HIGHLY INFECTED-COUNTRIES IN NEED OF UN-GCC WHO- JHU CORONA DEATHS RATES, CDR, IN %, Apr 11/21, e.g.: MXC 9.18 SDN 6.85 SYR 6.81 CN 5 .13 EQD 4.99 BLV 4.42 GTM 3.45 PRU 3.33 IRN 3.12 B. GLOBALLY LOWEST CDR-COUNTRIES, e.g.: SNG 0.05 BUTN 0.11 MNGL 0.15 QTR 0.18 MLDV 0.26 UAE 0.32 TLND 0.30 BHRN 0.36 CURC 0.56 SYCL 0.55 CYP 0.64 NRW 0.67 ISR 0.75 USBK 0.75 BORA 0.76 C. CONCLUSIONS 1) ONLY MANDATED UN-GCC CAN LEGALLY STOP DYING BY CTC-VIRUS VICTIMS. 2) NO COUNTRY ALONE CAN STOP THAT GLOBAL VIRUS CTC-SPREAD. 3) Biden Unprecedented Brutal attack in the SENATE on Israel's PM BEGIN* 4) Dead Sea Scrolls Not Key-Proof for Biden that 2k-yrs Land Owners DID Return. 5) CDR History-Trends in 114 countries is available by clicking name/search. * Via April 12, 2021 Video cited at my 'in'. /
Vigilant Clips
Vigilant Clips 8 days ago
Walmart will die and be slapped by Amazon by the next century, look at how face-to-face business is dying
EF ANDMK
EF ANDMK 7 days ago
Walmart has been contracting for several years. People who have some political, ethical and business savvy, have started deliberately, to avoid Walmart. It is back to being mostly a rural store again. Some cities have even banned them.
Jamie Lc
Jamie Lc 8 days ago
The mall here is more popular than ever
Alondra Ramírez
Alondra Ramírez 8 days ago
Wow I live in Southern California and my local malls are alive and well. I go there all the time with my friends and family. That sucks that elsewhere people can’t enjoy them as much.
Bumblebee
Bumblebee 2 days ago
I agree!
kim michaud
kim michaud 8 days ago
I was a late 80s early 90s mall rat I still love the mall but unfortunately so many stores are leaving the malls
aa aa
aa aa 8 days ago
jeff bezos amazon malls, we need not adhere to
Luis RG
Luis RG 8 days ago
Imagine 50yrs from now it finally comes out that Covid-19 was created on purpose so the richest man in the world could monopolize everything in his favor.
Dean Winchester
Dean Winchester 8 days ago
Malls are boring, that’s why. It’s plain looking, too hot, the stores are too expensive. Maybe if they had some big restaurants, hotels, gyms, bookstores and weren’t so boring looking inside it’d be cool.
Iris De La Rosa
Iris De La Rosa 8 days ago
There is estimated that 1000 or more people of unknown status slipping into our country daily.. ruvid.net/video/video-okegFQuqNgU.html
Next
Why U.S. Hospitals Are Closing
17:39