Though malls in Montgomery County joined many other regions in beginning to reopen in June, this move has not done much to ease concerns about the long-term well-being of malls in the United States.

In fact, some experts have been strong proponents of shutting everything down again, saying the country made an error in opening public areas again when it did.

In an article for the Philadelphia Business Journal, reporter Ashley Gurbal Kritzer discusses the fallout of COVID-19 that may await many malls. And contrary to popular belief, the potential demise of many shopping malls was not some inevitable event regardless of the virus.

In fact, many malls had seen a resurgence prior to the pandemic.

In Kritzer’s article she quotes Greg Maloney, president and CEO of JLL’s Americas retail business. “Pre-Covid, malls were at one of the highest occupancies they’ve been in years,” said Maloney. “They had challenges with department stores, but for the most part, malls were doing fine. There’s a misconception out there that pre-Covid, malls were going to die and go away, and it wasn’t true.”

What is true is that anchor stores like Sears and Macy’s were already struggling prior to the difficulties brought about by this year.

The virus has only exacerbated that problem, with real estate research firm Green Street Advisors LLC predicting that half of the mall department stores in the United States won’t make it through this crisis (per Kritzer’s article).

Department stores are big draws for customers, oftentimes being the destination that gets people to come to the mall in the first place, and leading to customers checking out other stores while there.

Many malls had been pivoting to introducing restaurants, movie theaters, and other entertainment venues to be their new focal points as department stores faded out. But with indoor dining and congested areas now discouraged, this solution is having trouble getting off the ground.

This leaves many malls stuck depending on anchor stores that are dying out, and no clear timeline for when they will be able to move on to opening new entertainment businesses in those spots. Caught between two eras, this will see a lot of malls with empty anchor stores and a struggle to draw customers back.

Read more about the long-term future of Malls and their anchor stores in the Philadelphia Business Journal.

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