E-commerce
September 18, 2026
Are you wondering if shopping malls will survive the rise of e-commerce? The short answer: some will disappear, but others are reinventing themselves by focusing on high-end offerings, residential mixing, and unique experiences. For an online merchant, understanding this transformation is essential: it sheds light on customer expectations, the complementarity between physical and digital, and the loyalty levers to activate.
The trap would be to believe that physical retail is dead. In reality, it is transforming, and successful brands know how to leverage both worlds. So, will shopping malls survive? On the agenda:
Why are shopping malls closing en masse?
What is the impact of store closures on malls?
How are shopping malls reinventing themselves?
What strategy should you adopt for your e-commerce brand?
How does Qstomy help transform the customer experience?
Let's get started.
Summary
Why are shopping malls closing on a massive scale?
Since the 1950s, shopping malls have been the mainstay of shopping, attracting consumers with convenient parking and a wide selection of stores. But the rise of online shopping and changing preferences have caused their appeal to plummet. As early as 2017, store closure announcements in the United States rose by 97% compared to the previous year, reaching 3,296 locations, according to Fung Global Retail & Technology.
This trend is not an accident: it reflects a structural shift. Consumers prioritize convenience, speed, and often price, benefits that e-commerce has mastered perfectly. For merchants, this is a signal: they must adapt to new expectations, not just endure the competition.
In parallel, the COVID-19 pandemic accelerated this transformation, pushing millions of consumers to permanently adopt online shopping. Habits formed during lockdowns have taken hold, and even the most loyal customers of physical stores have discovered the ease of home delivery. As a result, shopping malls, already weakened, have seen their foot traffic drop irreversibly in many regions.
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What is the impact of store closures on malls?
Major chains like Macy’s, J.C. Penney, and Sears, which often serve as mall anchors, are closing hundreds of stores. These anchors occupy strategic locations, often at the entrance, with surface areas exceeding 100,000 square feet. When they close, traffic to the other shops drops significantly, as they are the ones that attract visitors.
A shopping mall can survive with a few empty stores, but as leases expire, healthy brands close too, due to a lack of foot traffic. This vicious cycle explains why the closure of a mall often takes several years, but becomes inevitable.
Mall owners sometimes try to replace these large anchors with smaller tenants, such as gyms, movie theaters, or coworking spaces. However, these alternatives do not generate the same flow of buying customers. Surrounding shops, which relied on the foot traffic created by the department stores, struggle to maintain their sales, which further accelerates the departure of the remaining brands.
Which retail chains have announced a wave of closures?
Announcements are multiplying: Sears doubts its survival, Macy’s is closing an additional 68 stores, J.C. Penney is closing 138. Bebe, a women's clothing retailer, is closing all 170 of its stores to go fully online. Rue 21 announces 400 closures, Payless 408, The Limited is closing its 250 stores, and Sports Authority has filed for bankruptcy.
Ascena Retail Group, which owns Ann Taylor, Dress Barn, Loft, and others, plans to close between 250 and 650 locations. Gymboree, with 1,300 stores, is filing for bankruptcy and considering closing 375 shops. These massive closures are creating a void in malls, accelerating their decline.
This phenomenon is not limited to the United States. In Europe, iconic retailers like C&A, H&M, or Marks & Spencer have also reduced their store counts, and in France, entire shopping centers are struggling to renew their leases. The crisis in the sector is global, affecting both department stores and local boutiques, forcing operators to completely rethink their business model.
What is the retail overcapacity in the United States?
The United States has 23.5 square feet of retail space per capita, far more than any other country. Canada follows with 16.4 square feet, and Australia with 11.1, according to Morningstar Credit Ratings. This overabundance of retail space is no longer justified by current demand.
Twenty years ago, teenagers spent their weekends in malls. Today, they prefer to shop online and share their purchases on social media. Working women save time by ordering everything from clothes to furniture on the internet. The "shop till you drop" mentality has given way to a search for efficiency.
This overcapacity has direct economic consequences: commercial rents are falling, underperforming shopping malls are losing value, and investors are turning away from the sector. For local communities, the closure of a mall means a loss of tax revenue and jobs, prompting some cities to buy back these spaces to transform them into housing or mixed-use areas.
What is becoming of closed shopping malls?
Most closed malls remain vacant for years as operators search for a new use. But once they become vandalism magnets, they are usually demolished. The site Deadmalls.com documents this decline, a symbol of a bygone era.
Sometimes, the building is saved and repurposed. For example, the Eastmont Town Center in Oakland, California, now houses a police station, a library, a Social Security office, and a medical center. These public services are essential, but they do not generate any sales tax, which changes the economic game.
Other more ambitious projects transform malls into college campuses, production studios, or logistics warehouses for e-commerce. Amazon, in particular, has bought several shopping centers to convert them into distribution centers, taking advantage of their central location and vast parking lots. These conversions show that commercial buildings can have a second life, provided they move away from the purely commercial model.
Does the physical store still have a future?
Closed shopping malls could disappear, but consumers will likely continue to visit physical stores, especially outdoor configurations and small units. Everywhere, demolished malls are being replaced by mixed-use developments, combining retail, offices, and residential spaces.
These new spaces focus on a higher-end food offering and specialty boutiques rather than department stores. Proximity to residences ensures a constant flow of customers. This is a path for brands: physical retail is not dead, it is reinventing itself.
The brands that succeed today are those that create memorable experiences: workshops, demonstrations, events, well-curated dining corners. The store becomes a living space, not just a point of sale. For e-commerce brands, this means that a showroom or a pop-up store can serve to build brand awareness and create connections, even if the final sale happens online.
Which shopping malls are most likely to survive?
Traditional malls that survive will likely be those targeting an affluent clientele with high-end stores. According to Green Street Advisors, about 205 "Class A" malls in the United States are expected to thrive, while 334 "Class C" and "Class D" malls are at high risk of closure.
This ranking is based on sales per square foot, a key indicator. For retailers, this highlights the importance of segmentation: knowing your audience and tailoring your offering, whether online or in-store, is crucial.
Class A malls are investing heavily in renovations, green spaces, children's play areas, and fine dining. They attract premium brands looking to offer an exclusive experience. Conversely, Class C and D malls, often located in peripheral areas, do not have the resources to keep up and are gradually emptying. This polarization is a structural phenomenon, and it is expected to intensify in the coming years.
What is the impact of closures on vacant commercial space?
According to JLL, department store closures this year will result in up to 37 million square feet of vacant space in malls. This massive vacancy weighs on owners and communities, but it also opens up opportunities for alternative uses.
Physical retailers, even healthy ones, are asking for shorter leases, of one or two years instead of five to nine years. This caution reflects the uncertainty of the sector. For e-tailers, this is a reminder: flexibility is an asset, and digital allows for quick adaptation.
Malls that survive must also rethink their tenant mix. Movie theaters, climbing gyms, escape rooms, and fast-food spaces are taking up an increasing amount of space because they attract visitors who do not necessarily come to shop. This diversification is essential for maintaining foot traffic, even if it reduces the area dedicated purely to retail.
How have consumers changed their habits?
Shopping habits have changed radically. Teenagers share their purchases on social media, working people save time online, and the search for variety in a single place is no longer enough. Convenience is paramount: fast shipping, easy returns, and a personalized experience.
For brands, this means offering a seamless experience, whether on the website or in-store. E-commerce is not just a sales channel, it is a tool to understand and serve the customer wherever they are.
Consumers also expect consistency across channels: being able to buy online and return in-store, or check product availability before traveling. Brands that integrate these expectations into their strategy win customer trust. Conversely, those that treat physical and digital as two separate worlds lose sales and credibility.
What strategy should you adopt for your e-commerce brand?
Faced with this change, e-commerce brands must learn lessons. First, do not neglect the customer experience: personalization, speed, and transparency are differentiators. Second, consider the physical aspect as a complement, not a competitor: pop-up stores, corners, or showrooms can strengthen the brand.
Finally, use data to anticipate expectations. The shopping malls that survive do so by focusing on the high-end and the experience. Your online store can do the same by taking care of the purchasing journey, from discovery to delivery.
Concretely, this involves detailed product pages, verified customer reviews, personalized recommendations, and responsive customer service. Brands that invest in these levers see an increase in conversion and average cart size. Digital offers a flexibility that physical cannot match, but it demands constant rigor to maintain buyer trust.
How does Qstomy help transform the customer experience?
Qstomy, a Shopify AI agent, guides your customers toward purchasing with personalized recommendations, upsell and cross-sell suggestions, and smart cart management. It tracks packages, answers questions, and manages after-sales service, thereby reducing the friction that causes cart abandonment.
With more than 100 merchants supported, Qstomy helps increase conversion and build loyalty by offering an experience worthy of the best malls: every customer feels guided, advised, and supported at all times. It is the digital equivalent of the shop host who knows their customers.
In practical terms, Qstomy analyzes browsing behavior to suggest the right products at the right time, just like an experienced salesperson would do in-store. It anticipates frequently asked questions, provides reassurance regarding delivery times, and facilitates returns. This proactive assistance reduces cart abandonment rates and increases overall satisfaction, resulting in more loyal customers and positive recommendations.
What checklist should you use before launching your e-commerce strategy?
Before you start, check these key points:
Customer experience: personalize recommendations and the buying journey.
Logistics: ensure transparent parcel tracking and simple returns.
Support: respond quickly to pre-purchase questions to resolve objections.
Data: analyze behavior to adjust your offering.
In brief
Shopping malls will not all disappear, but only those that adapt will survive. For your brand, e-commerce is a powerful lever, provided you offer an impeccable experience.
FAQ
Will all shopping malls close? No, about 205 Class A malls are expected to thrive, while Class C and D malls are at risk.
What happens to closed malls? They are often demolished or repurposed for mixed-use developments, such as offices or public services.
How can Qstomy help? By guiding customers toward purchase, increasing average order value, and improving satisfaction through automated support.
To go further: What e-commerce strategy for a small brand under $100,000/month? - Qstomy, How to increase sales for an e-commerce store? - Qstomy, Pre-purchase questions in e-commerce: 30 objections to handle on your site - Qstomy, What is Google Shopping for e-commerce? Definition, feed and benefits for a store - Qstomy, Why does an e-commerce business fail within the first 12 months? - Qstomy, What share of retail trade is conducted online? - Qstomy, What share of retail trade was online in 2019? - Qstomy.
Enzo
September 18, 2026
