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Why Macy’s and Other Brands Are Moving into Strip Malls as Foot Traffic Soars

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As traditional malls continue to struggle with declining foot traffic, strip malls are experiencing a resurgence, with brands like Macy’s making a strategic move into these smaller, more accessible shopping centers. According to the International Council of Shopping Centers (ICSC), U.S. adults make about 1.3 billion visits to shopping centers each month—approximately 62 trips per person annually—and strip malls are capturing a growing share of that activity.

CNBC: Why Macy’s And Other Brands Are Moving Into Strip Malls

Data compiled by RetailStat reveals that annual visits to strip malls surged by 18% last year compared to pre-pandemic levels. The trend is driven by several factors, including the convenience of strip mall locations, the rise of hybrid work, and millennials flocking to fast-growing suburban areas where these shopping centers are often located.

“Lines are shorter because of smaller stores, parking is easier, and they’re usually on your way home from dropping your kid off at school or on your way home from work,” explained Jessica Vara, a real estate attorney at Hunton Andrews Kurth, highlighting the appeal of strip malls for busy consumers.

Macy’s and Other Retailers Embrace Strip Malls

In response to this growing trend, retailers are racing to secure a foothold in strip malls. Last year, Macy’s announced plans to open 30 new small-format stores in off-mall locations, part of a broader shift away from traditional mall-based operations. These smaller Macy’s stores are about a fifth of the size of the company’s traditional department stores and feature a curated selection of products aimed at catering to the on-the-go shopper.

Macy’s move is part of a larger strategy that reflects the evolving retail landscape. Shoppers are seeking quick, convenient, and hassle-free shopping experiences, and strip malls—with their easier parking, proximity to residential areas, and smaller store sizes—meet those needs.

Why Are Strip Malls Thriving?

Several factors are contributing to the renewed popularity of strip malls:

  • Convenience: Located near major roads, strip malls offer easier access compared to traditional malls. They often provide quicker in-and-out shopping experiences and have ample parking right in front of stores, a major plus for time-strapped shoppers.
  • Hybrid Work Culture: As more Americans work from home or adopt flexible work schedules, they are frequenting local shopping centers throughout the day, leading to increased foot traffic in strip malls.
  • Suburban Growth: Millennials, many of whom are now homeowners, are moving to fast-growing suburban areas where strip malls are often located. These shopping centers serve as convenient stops for busy suburban families.

Challenges and Criticisms of Strip Malls

Despite their growing popularity, strip malls have faced criticism. Some community members view them as aesthetically unappealing and argue they contribute to environmental problems such as urban sprawl. Additionally, they are seen as competing with traditional downtown business districts, which often struggle to maintain vibrancy as consumers shift toward shopping in strip centers.

The U.S. has more than 68,000 strip malls spread across the country, according to the ICSC, and this format has been a staple of American retail for decades. Initially designed to accommodate suburban shoppers, strip malls have expanded significantly over the years, with many becoming central to local economies.

The Future of Brick-and-Mortar Retail

As more retailers shift toward smaller, more nimble store formats, the strip mall model could represent the future of brick-and-mortar retail. Brands like Macy’s are betting that a more curated, convenient shopping experience will draw customers away from traditional malls and into locations that better fit their daily routines.

The success of these smaller-format stores may signal a broader shift in the retail industry, as companies adapt to changing consumer preferences and shopping habits in a post-pandemic world.

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