DISCUSSION

Is the future of malls outside?

Written by Tom Ryan

Photo: Westfield Valley Fair

On Friday, Westfield Valley Fair, the Bay Area’s largest mall, opened an open-air pop-up market in front of Bloomingdale's. The pop-up tents arrive as many enclosed malls, including those across California, remain closed as a preventive measure against the spread of COVID-19. Health experts have found people are significantly less likely to contract the coronavirus while outside. Open from Friday through Sunday, the space features 17 retailers and restaurants — including Levi’s, Coach, Pottery Barn and Ann Taylor — with more expected to be added. The mall has made cabanas available for about a half a dozen high-end stores. Kate Diefenderfer, director of marketing at Westfield Valley Fair, told KTVU Fox 2, “Clients can actually book appointments to visit our luxury retailers upstairs in private cabana spaces on our outdoor terrace.” The pop-up will run from July 24 to August 16 and will be extended if successful. Other Westfield malls across the country are launching similar programs. Enclosed malls were already seeing weak traffic prior to the pandemic due to the shift to online selling and struggles at department store anchors. With the spread of COVID-19, Jan Kniffen, a retail consultant and former executive at May Department Stores, in June predicted that a third of U.S. malls could close by 2021. At many enclosed malls, only stores with exterior entrances have been able to remain open, and curbside pick-up remains a challenge for inside tenants. Landlords are being asked to upgrade air filtration systems to improve the quality of airflow. At the same time, the social distancing ease of outdoor shopping has amplified the appeal of open-air shopping environments, including lifestyle centers, outlet malls and strip centers. Open-air shopping environments were drawing steadier traffic than traditional enclosed malls in recent years in part because big box stores, grocery stores, salons and gyms can serve as anchors. Outdoor plazas also offer up more dining and entertainment options. “Open-air malls provide a safe space for people to congregate,” Stenn Parton, chief retail officer at DJM, which manages open-air malls in Southern California and Texas, told Glossy. “The future of outdoor malls is very bright.”

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