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Sep 06, 2023

What is the future for shopping malls in New York?

Shopping malls used to be the hangout spot. Going to the mall was a popular

Shopping malls used to be the hangout spot. Going to the mall was a popular activity, almost like a rite of passage for teens. It was a symbol of American consumerism with hallways and escalators surrounded by retailers as far as the eyes could see.

People still go to the mall these days, even with the growing numbers of online shopping.

"We’re starting to see pre-pandemic numbers," said Marissa McCarren, the assistant VP of marketing for Pacific Retail Capital Partners.

Pacific Retail Capital Partners owns Colonie Center and 21 other shopping centers across the country. McCarren said after COVID-19, where people spent time indoors, they’re coming out to spend time and engage with each other. But even before the COVID-19 pandemic shut down businesses, malls had seen better days, according to Clifton Park Town Supervisor Phil Barrett.

"There are a lot of malls that are struggling and dying," said Barrett.

Shopping centers started to gain popularity in the 1960s and 1970s. They’ve gone through many transformations to keep up with the times. Clifton Park Center, for example, was a traditional mall with connecting hallways that anchored small stores with major retailers.

Barrett said it was a little more than 20 years ago when the town came up with a plan to change the landscape a bit. They chose more of a downtown shopping feel, giving the stores an outside entrance. He said the change along with one store in particular help to save the mall.

"We were able to get Mr. Boscov's attention," Barrett said. "We had a very aggressive campaign to bring him here; ‘just give Clifton Park a second look.’ "

But then came a major societal shift. Shoppers could easily purchase their items with the click of a mouse or a tap of their phones. Retail centers had to rethink what the future might hold with crowds dwindling.

They now see a future where malls are not just for shopping but are a destination.

"One of the great things that Pacific Retail did throughout COVID before and after, was to continue to pivot. They continue to understand that this was an ever-changing environment," McCarren said.

McCarren added that it also helps to get the right retailers that makes sense for the specific community. It's the perfect mix where customers can shop. But they can also create memories with experiences with their families.

"We love to be involved in community events and community activities, supporting our community because they support us," she said. "We’re doing that across our portfolio. And we’re creating not just an opportunity for people to shop but to spend the day."

McCarren said they could watch a movie, eat at a restaurant and participate in events and celebrations like the "Mother's Day" show. In the case of Clifton Park Center, customers can get a quick workout at a gym, stay in a hotel or go bounce around at an indoor trampoline park. These are all things you really didn't see at malls many years ago.

"These are all experience-related attractions to the mall that do complement all of the retail that's here as well," Barrett said.

That's also part of the reason experts say places like Destiny USA in Syracuse is packed on any given weekend. Walden Galleria in Buffalo is also seeing an increase in traffic after COVID.

In this global world of e-commerce, shopping centers are reimagining their role in serving their community. It seems some are adjusting better than others. Many are flourishing. Barrett believes it has a lot to do with where they’re located. But more specifically, he said, malls tend to do better when they have good management and a great partnership with local government.