The retail landscape in the United States is undergoing significant changes, with many malls facing the threat of closure. Factors such as the rise of e-commerce, shifting consumer preferences, and the lingering effects of the COVID-19 pandemic have contributed to this trend. Major malls across the country are struggling to stay afloat due to declining foot traffic and the loss of key retailers. Here are nine major US malls at risk of closure and the specific reasons behind their precarious situations.
1. Fashion Valley Mall, San Diego, California
Fashion Valley Mall is grappling with declining foot traffic and the closure of anchor stores like JCPenney. The shift towards online shopping and the impact of the COVID-19 pandemic have exacerbated these challenges, making it difficult for the mall to maintain profitability. JCPenney’s closure in 2025 will lead to the construction of nearly 850 luxury residences on the site, transforming the mall into a mixed-use center.
2. Sunrise Mall, Citrus Heights, California
Sunrise Mall is facing a similar fate with the planned closure of Macy’s. The loss of this anchor store is expected to lead to a domino effect, causing other retailers to leave and further reducing foot traffic. The mall has experienced a 25% vacancy rate, with several stores closing in the past year.
3. Downtown Commons, Formerly Downtown Plaza, Sacramento, California
Downtown Plaza is also at risk due to Macy’s closure. The mall has struggled to attract new tenants and maintain occupancy rates, leading to financial difficulties. Macy’s closure is part of a broader strategy to eliminate underperforming stores, with 66 locations set to close in 2025.
4. Westfield Garden State Plaza, Paramus, New Jersey
Westfield Garden State Plaza is experiencing a decline in sales and foot traffic, partly due to the rise of e-commerce. The mall’s reliance on traditional retail stores has made it vulnerable to changing consumer preferences. Despite high overall sales of $893 million in 2023, the mall’s owners are in the midst of a years-long redevelopment project, which includes the construction of 1,400 apartments and additional retail space.
5. Northgate Mall, Seattle, Washington
Northgate Mall has seen a significant drop in visitors and sales, with many stores closing down. The mall’s outdated infrastructure and competition from newer shopping centers have contributed to its decline. The mall permanently closed in 2020 due to extreme financial difficulties exacerbated by the COVID-19 pandemic.
6. Southdale Center, Edina, Minnesota
Southdale Center is struggling with high vacancy rates and the departure of key retailers. The mall’s inability to adapt to the evolving retail landscape has put it at risk of closure. The mall has seen a decline in shoppers, with several stores closing and new luxury retailers being introduced as part of a redevelopment plan.
7. The Galleria, Houston, Texas
The Galleria is facing financial challenges due to the closure of several high-profile stores and a decrease in consumer spending. The mall’s reliance on luxury retailers has made it particularly vulnerable to economic downturns. The mall’s cinema closed indefinitely in 2023 due to a water main break, adding to the mall’s financial woes.
8. The Mall at Tuttle Crossing, Dublin, Ohio
The Mall at Tuttle Crossing has been struggling with a high vacancy rate of 30%, with several anchor stores like Sears and Macy’s closing in recent years. The mall’s inability to attract new tenants and the rise of e-commerce have contributed to its decline. The mall’s owners are considering converting the space into a mixed-use development to revitalize the area.
9. The Shops at Willow Bend, Plano, Texas
The Shops at Willow Bend is facing financial difficulties due to declining foot traffic and the closure of several high-profile stores. The mall’s reliance on traditional retail stores has made it vulnerable to changing consumer preferences. The mall’s owners are planning a major redevelopment project, which includes adding office space, residential units, and a hotel to attract more visitors.
Final Thoughts
These malls are emblematic of the broader challenges facing the retail industry. The rise of e-commerce, changing consumer preferences, and the lingering effects of the COVID-19 pandemic have all contributed to the decline of traditional shopping centers. As these malls struggle to adapt, their future remains uncertain.