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Shopping Malls Are Not Dying

Apr 27, 2015

According to some recent press, stories have publicized that shopping malls are a dying breed. However, this simply isn’t true. When you look at the data and crunch the numbers, you’ll see that malls are actually on the rise. So if you’re debating the idea of opening a mall franchise with a brand like Pretzelmaker, try it out!

shopping mall

Distinguishing a “Dead” Mall

It’s generally accepted that in order to be classified as “dead,” a mall must reach at least 40% vacancy in its available stores. While some major media outlets have touted that malls are dying, the truth is that only 3.4% of America’s malls have reached this “dead” status. This means that 96.6% of them are still alive and well!

Why Do Malls Die?

Research shows that when malls reach a dangerous economic state, the primary culprit is demographics – not supply and demand for the actual goods and products sold, nor the overall mall experience. Many malls have seen slumps due to declines in the nearby population, as well as the ongoing in slump in middle-class wages.

While these “middle-ground” malls – specifically Class C and Class D malls – may experience some turbulent times, Class A and Class B malls are doing just fine. In fact, Class A malls, which are the “destination” malls that exist in major markets, are projected to continue performing quite well for the indefinite future. Class B malls, which serve their shoppers well in the given trade area, are projected to perform at a stable level as well.

Better Malls, Bigger Competition

Another source of hardship for some malls is competition. Simply put: it’s not because people don’t want to visit malls, it’s because a better mall opened down the street. Instead of losing mall traffic all together, smaller malls are losing traffic due to their spiffier younger cousin who just opened up. As a leg-up over lower-class malls, higher-end malls offer an overall shopping experience as opposed to cut-and-dry goods and services.

Mall Franchising Is Still a Great Investment

This ties back into entrepreneurs who may be skeptical to start a mall franchising opportunity because of the fear that their store will simply not perform. But with so many strong, thriving brands in the market, your mall franchise could be a great opportunity.

To learn more about our mall franchise opportunities with Pretzelmaker, download our free online brochure here:


If you’re ready to bring Pretzelmaker to your community click here to skip to the front of the line by filling out a franchise application.

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