Fact Check: Did American malls declined due of economic decline in parts of United states

Fact Check: Did American malls decline due to economic decline in parts of the United States?

What We Know

The claim that American malls have declined due to economic downturns in parts of the United States is supported by several trends and statistics. The American mall experience has been a significant cultural and economic phenomenon since the first fully enclosed mall opened in 1956. However, recent years have seen a notable decline in the number of operational malls. Reports indicate that the number of malls has decreased by approximately 16.7% annually from 2017 to 2022, with a vacancy rate that is 248% higher than the overall average for retail spaces (Capital One).

Moreover, the performance of malls varies significantly based on their classification. A-graded malls have shown resilience, with occupancy rates and rents increasing by up to 5.5%, while B-graded and lower malls are experiencing declines, with B-graded malls dropping by 2.5% and C-class malls plummeting by as much as 8% (Retail Dive, Media Group Online). This suggests that economic factors, including consumer spending habits and competition from online retail, have contributed to the struggles faced by many malls.

Analysis

The decline of American malls can be attributed to a combination of economic factors and changing consumer behaviors. The rise of e-commerce has significantly impacted traditional retail, with online sales remaining a substantial portion of total retail spending (The Economist). As consumers increasingly prefer the convenience of online shopping, many malls have struggled to maintain foot traffic and sales.

The classification system for malls indicates a stark divide in performance. A-graded malls are thriving, while lower-graded malls face dire prospects, often leading to repurposing or closure (Retail Dive). This divergence suggests that while economic decline in certain areas may exacerbate the issues faced by lower-tier malls, the overall decline is also influenced by broader shifts in retail dynamics rather than localized economic downturns alone.

In evaluating the sources, it is important to note that reports from established publications like The Economist and Retail Dive provide credible insights into the state of American malls. However, some sources, such as Business Insider, may present more speculative views on the future of malls, which should be considered with caution.

Conclusion

The claim that American malls have declined due to economic decline in parts of the United States is Partially True. While economic factors have certainly played a role in the decline of many malls, particularly those in lower classifications, the overall trend is also influenced by significant changes in consumer behavior and the rise of e-commerce. Thus, while economic decline contributes to the challenges faced by some malls, it is not the sole factor driving the overall decline in the mall landscape.

Sources

1. Shopping malls are making a comeback in America - The Economist
2. The Future of the American B Mall (and Other Grades ...
3. The Uncertain Future of American Malls: Winners, Losers ...
4. United States - jll.com
5. Shopping Mall Closure Statistics (2025): Are Malls Dying?
6. The Death and Rebirth of the American Shopping Mall: Part 1
7. The decline of the American mall has left just 700 still ...
8. US Store Closures Predicted to More Than Double in 2025