The decline of American malls presents an opportunity to rethink their role in retail. With 25% of malls projected to close, two major inefficiencies stand out: wasted space like walkways and atriums, and redundant supply chains where goods are shipped twice—first to stores, then by consumers. A hybrid model could repurpose malls to reduce these inefficiencies while keeping the benefits of in-person shopping.

A New Approach to Mall Spaces

One way to address this could be transforming malls into wholesale showrooms combined with last-mile delivery hubs. Instead of stocking inventory on-site, consumers could browse products in person, then have purchases shipped directly from regional warehouses. Vacant anchor stores might host community amenities like gyms or libraries to drive foot traffic. For example, a shopper could try on clothes or test electronics in the showroom, place an order, and receive it the next day—while the mall’s food courts and community spaces maintain their social function.

Benefits for Stakeholders

This model could align incentives across multiple groups:

• Mall owners could stabilize property values by filling vacancies with higher-revenue tenants.
• Brands might reduce costs by sharing showroom space instead of operating standalone stores.
• Consumers could access lower prices due to streamlined shipping, while still enjoying hands-on shopping.
• Local communities might gain cultural hubs in underutilized suburban spaces.

Testing the Idea

A pilot could start by converting one vacant anchor store into a multi-brand showroom, partnering with 5–10 retailers to display samples. Orders could integrate with warehouse systems, offering same-day delivery for small items and next-day for bulkier goods. Early metrics might focus on revenue per square foot compared to traditional stores and consumer willingness to wait for delivery. If successful, the model could expand to include community amenities to further boost foot traffic.

This approach could offer a middle ground between e-commerce and traditional retail, leveraging existing mall infrastructure to create a more efficient and engaging shopping experience.