There are dozens of malls in Massachusetts -- but not all are made equal.
As some malls in the state have expanded and thrived, others serve as an echo of decades past. As shopping meets a new era of consumerism defined by e-commerce and digital trends, experts say malls need to adapt to the ever-changing retail landscape.
"It's important that malls must continue to evolve to meet the needs of changing shopper behavior," Michael Merrow, regional vice president for Simon Malls, New England told MassLive.
Simon owns or has interest in 14 shopping centers in Massachusetts. Some of the most popular retail hubs in the state, like Copley Place in Boston, the Northshore Mall in Peabody, the Burlington Mall and the Premium Outlets in Lee and Wrentham are all operated under Simon, the largest retail real estate investment trust in the country.
Occupancy remains overall at 95.5 percent for Simon Malls as of September, unlike other retail centers where occupancy has dropped, such as Worcester’s Greendale Mall, where Simon abandoned operations in 2016 and property management company KeyPoint took over.
With nearly 200 stores and a variety of chain and upscale restaurants nearby like Del Frisco’s Grille or Tuscan Kitchen, the Burlington Mall - celebrating its 50th year - has become something of a destination, and that is precisely what makes a mall successful in 2018, experts say.
"One of the interesting trends we're seeing in Massachusetts, as well as elsewhere, is the conversion of malls into mixed-use centers," Shuba Srinivasan, a professor of management and marketing at Boston University's Questrom School of Business who has conducted research on retail trends, told MassLive.
A balance between e-commerce and brick-and-mortar storefronts, what Srinivasan calls “multi-channel” consumerism, has benefitted malls that recognize the change in shopping patterns. At the Burlington Mall, for instance, there are spaces for customers to both plug in and relax.
According to Merrow, the popular Burlington Mall offers "a variety of amenities that provide convenience and ease for shoppers such as free WiFi, charging stations for electronics, soft seating areas for comfort, digital signage, and directories."
But in places like Worcester, where the Greendale Mall sits vacant and somewhat desolate, the reality is less charming.
“When I walked in this mall, it was like the antithesis to everything a mall meant to me growing up in my teens and 20s,” said Ethan Bentley, of Boxborough. “It felt like despair, whereas a mall always felt like, ‘this is where you hit on girls. This is where you get your jeans. Everybody’s happy to see each other.’”
Bentley first visited the Greendale Mall in September 2017, when he attended classes at the National EMT Institute there. “No one looked happy,” he said, and noted there were only a few anchor stores left. When he needs to shop, Bentley instead opts for a visit to “The Point,” a new mixed-use outdoor shopping center in Littleton with restaurants, hotel and office space, shops and a state-of-the-art movie theater.
Across the country, mall vacancy rates jumped from 8.3 percent in 2017 to 9.1 percent this year, according to a Quarter 3 October report by Reis, a national data source on commercial real estate.
The average mall "asking rent" price also declined 0.3 percent, marking the first quarter to see a rent decline since 2011, according to Senior Economist Barbara Byrne Denham.
"The average mall rent has been driven by momentum at both ends: our data shows that high-end malls in better locations are thriving while those in weaker areas are seeing declines that are dragging down the average," Denham wrote in her report.
"For those that are still in business -- many have closed and will continue to close -- they will likely see continued rent declines," Denham concluded.
The most recent increase in mall vacancies was caused by the wave of Sears stores shuttering in early August. Like other department stores and big box chains, Sears faced mounting debt, declining sales and a broken structural model for selling goods.
“The malls might be a relic of a time past. With Amazon, how do you compete anymore? It seems like a fossil that unfortunately, despite what I remember about them, probably need to go by the wayside,” Bentley added.
“Anchor” big box stores are getting squeezed out, as shown by past bankruptcy claims of chains like Circuit City, Borders, and more recently Toys 'R Us. In their place, new trends like specialty stores, digital consumerism, mixed-use properties and “experiential” shopping started to take hold, according to Srinivasan.
"The thinking is, malls have to be a destination. So some of the better, more successful malls have added more enhanced experiences," Srinivasan said. Rather than simply finding a product, consumers can discover something innovative or engaging.
The Natick Mall, for instance, recently opened the first two-story Wegmans “megamarket” and a pop-up shop for e-commerce retailer Wayfair.
At Lynnfield MarketStreet, the open-air shopping center launched with WS Development in 2013, an ice skating rink sits in the center of the plaza. In the summer, the rink is a turfed lawn with seating and games, such as life-sized chess. A Whole Foods sits among the dozens of shops and high-end restaurants there, which also neighbor luxury apartment buildings.
At Somerville’s Assembly Square, developed and owned by Federal Realty Investment Trust, a mix of upscale restaurants, shops and attractions rooted in experiences, like the AMC theater or “Legoland,” are mixed in with residential properties.
“They find they have everything in one place. Gyms, spas, work-play offerings,” Srinivasan said. First popularized in big urban areas like Manhattan, the mixed-use trend has spilled over into other places.
The struggling Eastfield Mall in Springfield, an outdated space with low customer reviews, is taking the hint.
Recently managers announced dramatic steps to reinvent the Eastfield property, which include demolishment of the mall to create a mixed-use “village within the city.” In recent years, closures of Sears, Macy’s and JCPenny at the mall, first constructed in 1967, prompted Mountain Development to think outside the box.
Literally, outside: though they are still looking for business partners, developers have a $200-million plan to construct an outdoor mall known as “Eastfield Commons,” offering space for work, fitness and housing amenities, akin to popular open-air centers like Somerville’s Assembly Row or Lynnfield’s MarketStreet.
Eastfield Mall on course to 'de-mall'; what will it look like in 3 years?
For malls struggling in suburbia, there is hope: brick-and-mortar stores are still necessary, said Srinivasan, but they must work in tandem with online.
Consumers like to browse and survey online, but for many items -- particularly things Srinivasan describes as “experiential” like apparel -- they still want to touch and feel them at a brick-and-mortar store.
Trends like beta-testing, store demos, temporary pop-ups and events targeted to customers can help make malls more of an attraction than a one-stop shop.
“These things are what drives people, because they are sort of an unexpected treasure-hunting experience that goes along with these engaging spaces,” Srinivasan said.
In order to adapt and meet consumers where they are today, it will require significant investment by struggling malls -- but it can be done, she added.