Report: ‘Mall mix must change’

Three-quarters of gross leasable area in American malls are inhabited by stores representing the slowest-growing retail categories.



That’s the basis of a report from CBRE advising mall owners to seriously consider diversifying their tenant mixes. Department stores sales are declining by around 4%, yet they take up 49% of mall space. Apparel stores that form 30% of mall makeup are growing at a 12%, but that’s well below restaurants at 32% and furniture, personal care, and health care stores at above 20%.



“The American mall itself isn’t anywhere close to dead; It’s the old mall model that is dying,” said Melina Cordero, CBRE’s head of retail research for the Americas. “It is a necessary evolution for the mall industry to maintain its place as a cornerstone of American retail.”