Canadian shopping malls, despite their comparative strength against American counterparts, have begun to encounter challenges, in an era where shopping has become extremely digitized. Iconic anchor tenants like Target and Sears, once stalwarts of Canadian malls, have ominously vanished in recent years. The relentless shift of consumers towards online shopping looms as a threat, casting shadows over the viability of malls. Convenience, once the hallmark of shopping malls, now dwindles as consumers opt for the ease of online browsing and purchasing. An example is Nordstrom’s closure of 9 of its outlets throughout Canada, 3 of which are anchor stores. Landlords will stand to lose rent from Nordstrom which can legally break their lease after filing for creditor protection. The significant rent revenue reduction due to their box sizes will result in decreased footfall can be extremely detrimental to the mall if the anchor space isn’t filled up soon.
Millennials make up a large target market of shoppers, representing 26% of the population of Canada or about 9 million people, whose shopping journey is highly technology based. Online shopping plays a big part in this, where shoppers decisions are heavily reliant on the hype and popularity of brands and goods on social media. Smaller malls with some of the department stores and anchor stores that have gone into bankruptcy, those are the malls that are struggling, and many of those have died and many of those will probably continue to die if they do not revamp their strategies. The Yorkdale Shopping Center which brings in an estimated 18 million visitors a year, have taken a fresh approach by expanding the mall experience beyond simply shopping with a plethora of entertainment and food offerings. The entire shopper’s dynamic has shifted to either experiencing something, buying something, tasting something or seeing something that you simply can’t find anywhere else. The problems is most malls in Canada really have not yet embraced that new mindset, quite frankly.
Shopping malls are grasping at straws and are striving to stay relevant by any means necessary. It’s evident that in this dynamic consumer environment, destinations like Yorkdale Shopping Center are experiencing unprecedented success. Meanwhile, smaller, less conspicuous spaces must adjust to meet the evolving needs and realities of their communities to thrive. Join us at the Shopping Malls Summit and gain exclusive insights from companies that have successfully navigated the evolving landscape, equipping yourself with the tools needed to thrive in this ever-changing industry. Don’t miss out on this exceptional opportunity to forge meaningful connections and gain a competitive edge.
