An industry expert says Walmart, Costco and Amazon permanently changed American shopping, leaving traditional malls to reinvent themselves as store closures spread nationwide.
American malls now face pressure from two directions. Online sellers offer speed and easy price comparisons, while retail giants draw shoppers with their size and reach.
That shift has forced malls to become more than collections of stores. The properties still attracting visitors increasingly offer restaurants, gyms, entertainment and community events.
The result is a broad reckoning for American malls. Some properties are finding a new purpose, but others have struggled or failed to keep pace with shoppers.
Alex Hennick, president of AD Hennick and Associates, laid out the competitive pressure in comments reported by The U.S. Sun:
“Online shopping, especially the convenience and reach of Amazon, along with the scale of Walmart and Costco, has permanently changed how people shop.”
Hennick said online shopping lets consumers compare prices and buy goods whenever it suits them. That weakens the old mall model, which depended heavily on shoppers visiting one place for many errands.
Amazon brought convenience and reach to the contest. Walmart and Costco brought scale. Together, Hennick argued, those forces changed consumer habits for good.
That does not make successful retailers the villains. Competition rewards businesses that give customers better prices, greater choice or more convenience. Mall owners still must respond instead of expecting yesterday’s habits to return.
Some responses risk making the visit less appealing. The spread of paid premium parking, for example, shows how mall economics can reach shoppers before they enter a store.
The decline also has deeper roots. The U.S. Sun traced the so-called retail apocalypse to the 2010s, with pressure from the 2008 financial crisis and faster closures during the pandemic.
Experts estimated 15,000 store closures for 2025, the publication reported. That figure was more than double the 2024 total and the highest since the pandemic.
The 2025 closure list covered department stores, specialty chains, pharmacies, supermarkets and entertainment businesses. Named companies included Macy’s, JCPenney, Kohl’s, Nordstrom, Joann, Party City, Walgreens, CVS, Foot Locker and Regal Cinemas.
Closures by traditional mall tenants reinforce the pressure. The continuing contraction at chains such as Journeys footwear reflects the wider problem facing shopping centers built around store traffic.
The pressure was expected to continue in 2026. Macy’s, Kroger, Yankee Candle, Saks Off 5th, REI, Walgreens, GameStop, Carter’s and Foot Locker were listed among companies that had announced more closures.
Not every closure means a mall will fail. But each lost tenant makes the old model harder to sustain, especially when shoppers already have fewer reasons to make the trip.
Long-running properties are not immune. The planned Eastpoint Mall shutdown offers one concrete example of how the decline can reach an anchor retailer and surrounding specialty stores.
Hennick said malls performing well have given people fresh reasons to visit. Dining, fitness, entertainment and community events can draw visitors who no longer need a mall for routine shopping.
Gen Z shoppers, he said, view malls less as places for errands and more as places to spend time with friends. Families remain the backbone of mall traffic, while young professionals are visiting at higher rates than expected.
That turns the mall into what Hennick called a “third place,” meaning somewhere outside home, work or school where people can gather. He said communities lack enough comfortable, accessible places for friends and families to meet.
That opportunity comes with a warning. Hennick said malls are changing, but not every property will complete the transition successfully.
The lesson is plain: customers moved toward price, convenience and choice. Mall owners who want them back must earn the visit rather than blame the competition.