Reasons Behind the Decline of Shoppers in Shopping Malls: An Analysis

This essay analyzes the decline in shopping mall shoppers, attributing the trend to factors such as the rise of online shopping, economic downturns, and shifts in consumer behavior. The essay examines how online platforms offer price comparisons and convenience, drawing shoppers away from physical stores. It also discusses the challenges faced by department stores, which serve as anchor tenants for many malls. The paper emphasizes the need for shopping malls to adapt by focusing on social interaction and customer experience, acknowledging that they cannot compete with online platforms on product selection or price. The conclusion stresses the importance of leveraging technology to enhance customer satisfaction and overall mall usability. The author cites various sources, including reports from Forbes, the New York Times, and Fortune Magazine, to support the analysis.

Running head: TERTIARY ENGLISH
Tertiary English
Name of the Student:
Name of the University:
Author Note:

1TERTIARY ENGLISH
Introduction
Shopping malls are officially defined as one or more buildings representing the
merchandiser and forming complex of shops which are interconnected through walkways and
enables the visitors to walk from one unit to another (Fortune.com 2017). It is essential for the
shopping malls to reinvest if they want to survive in this digital age. This paper will highlight the
reasons as to why shopping malls are facing decline in the shoppers these days. The main aim of
this paper is to analyze the causes of the decline in the shoppers in the shopping malls and the
effects which it laid on the business and the shoppers.
Discussion
According to a report published in Forbes (2015), online shopping is having only a small
effect i.e. less than 10% of the retail sale takes place through online and this sale hits the big box
stores much harder than the fashion chains and the other retailers in the enclosed malls. The main
reason is not due to the switch from in-store to online shopping but rather due to the shift of the
consumer’s approach to various purchasing items. It is necessary to compare the price and
purchase merchandise through varied platforms including departmental stores, designer sites,
brick and mortar stores. The retailers have shifted their focus to promotional selling. The
economic downturn is also another reason since there are only few shoppers who are visiting the
malls. The retailers must also look at the omnichannel shopping efforts of the stores.
According to a report published in New York Times (2015), one major reason for the
decline in shoppers in the malls is due to online shopping. The shoppers are more attracted to the
nearby properties rather than visiting than shopping malls which are far away from their home.

2TERTIARY ENGLISH
There are many shopping malls in US which are struggling to fill the floor space. This is due to
the changing taste of the consumers and the increase in online shopping. On the other hand,
online shoppers will have to pay additional sales tax and this will lead to strong competition
between the online and the traditional shopping malls ( the malaysian insight.com 2017). The e-
commerce sale has declined approximately by 11% after the introduction of sales tax in online
purchase.
According to the report of Fortune Magazine (2016), the decline in the departmental
stores is one of the biggest challenges with these the mall owner has to cope up with. The US
malls views their department stores as the anchor tenant and it is necessary to rely on them to
draw the customers and patronize the stores, malls and the businesses. The ease of click and the
buy options determine the real cause which influences the buyer’s decision for online shopping.
Moreover, another factor i.e. distance from home is another factor which is contributing for the
decline in shoppers in the shopping malls. As there is provision in the online stores for the
comparing the prices of various items, the customers can make a practical analysis of the product
and thus prefer online shopping rather than visiting the stores. The easy access to web on the
mobile device has also allowed the shoppers to make price comparison.
Conclusion
Thus, it can be said that there are many advantages as well as disadvantages of shopping
malls. The social e-commerce with customer experience has created a strong need among
different traditional retailers to take care of the various innovative ways. The brands must try to
focus on turning their physical store into such a place which will allow for more social
interaction and engagement. The shopping malls will never be able to compete with the product

3TERTIARY ENGLISH
selection or with price comparison. Therefore, the shopping malls must use various other
technologies so as to transform the mall usability in improving customer satisfaction.

4TERTIARY ENGLISH
References
Forbes.com 2017. Forbes. [online] Available at:
https://www.forbes.com/sites/timworstall/2015/01/04/the-shopping-malls-really-are-being-
killed-by-online-shopping/#49c26e06fbb3 [Accessed 24 Oct. 2017].
Fortune.com 2017. Fortune. [online] Available at: http://fortune.com/2016/12/02/shopping-
malls-trouble-data-charts/ [Accessed 24 Oct. 2017].
Nytimes.com 2017. New York Times. [online] Available at:
https://www.nytimes.com/2015/01/04/business/the-economics-and-nostalgia-of-dead-malls.html
[Accessed 24 Oct. 2017].
TheMalaysianInsight.com 2017. Malaysian Insight. [online] Available at:
https://www.themalaysianinsight.com/s/960/ [Accessed 24 Oct. 2017].