Revitalizing Shopping Malls: The Rise of Non-Traditional Tenants

As Macy’s, a leading department store, closes underperforming locations, some shopping malls are finding new life by introducing non-traditional tenants, such as indoor amusement parks, ice rinks, and grocery markets.

<img alt="An indoor amusement park has opened inside Turtle Crossing, a mall in Columbus, Ohio, where Macy’s closed.” src=”https://news.koreadaily.com/data/photo/202409/17/9edf4050-a181-4a77-bc1c-a5a0c615258e.jpg” />

An indoor amusement park has opened inside Turtle Crossing, a mall in Columbus, Ohio, where Macy’s closed. [씬75 엔터테인먼트 제공]

Macy’s announced in February that it would close 150 of its 500 stores by early 2027. While this may seem like the end of retail, the empty spaces are being used in various ways to attract more customers to some malls.

From Department Stores to Amusement Parks

Among the facilities being introduced to the places where Macy’s has withdrawn, amusement parks are gaining popularity. Indoor amusement parks with activities such as laser tag and rock climbing are becoming increasingly popular, as shopping mall operators aim to attract more customers.

Restaurants, Markets, and Entertainment

Some department stores are being transformed into restaurants or markets. Stonestown Galleria in San Francisco replaced Macy’s with Whole Foods Market, attracting many customers. At Tysons Galleria in Washington, D.C., Macy’s empty stores have been replaced with restaurants, bowling alleys, and theaters.

Office Complexes and Shared Offices

Some former Macy’s locations are thriving after being transformed into office complexes or shared offices for medical institutions. Since Macy’s usually occupies a huge space of over 200,000 square feet, there are also some unique cases, such as the transformation of Macy’s into an ice rink in Southtown Mall, Sandy, Utah.

A Blessing in Disguise

Chris Wimmer, senior director of real estate at international credit rating agency Fitch Ratings, said, “Macy’s withdrawal will be an opportunity for shopping malls that cannot keep up with the rapidly changing demands of consumers to disappear,” while “the construction of new facilities can actually breathe new life into the malls.”

This means that Macy’s withdrawal could actually be a blessing in disguise for shopping malls, as they can now introduce new and innovative tenants to attract more customers and stay competitive in the rapidly changing retail landscape.