You’ve probably heard for years that the American mall is a ghost town. It’s a classic story: empty food courts, crumbling fountains, and weeds growing through the cracks of a Sears parking lot. But if you actually look at the mall foot traffic news hitting the wires right now, that "apocalypse" script is basically being shredded in real time.
Honestly, the data is a bit of a head-scratcher if you’re still living in 2019. According to recent Placer.ai Mall Index reports, January 2025 saw a massive 5.5% jump in visits to indoor malls compared to the year before. Even with an "arctic blast" keeping people indoors for weeks, shoppers still showed up. By the time we hit the start of 2026, the trend has become even weirder and more interesting.
The middle is dying, but the edges are thriving. That’s the real story.
The Great Mall Bifurcation of 2026
We aren't seeing a "rising tide lifts all boats" situation here. It's more like a split. On one side, you have the "A-tier" luxury malls and massive regional hubs like the Mall of America, which is absolutely crushing it by leaning into what people call "experiential retail." They aren't just selling jeans; they're selling an afternoon at a Nickelodeon theme park or a SEA LIFE aquarium.
Then there’s the "B and C" malls. Those are the ones you see in the sad YouTube documentaries.
- Top-tier malls: High occupancy (often over 95%), rising rent, and foot traffic that actually beats pre-pandemic levels.
- The "Middle" Malls: Struggling to keep anchors. When a Macy’s or a Nordstrom pulls out, these places have to get creative or die.
- The Outliers: Open-air centers and outlet malls. Interestingly, outlet malls actually saw a bit of a dip in late 2025 because people are getting tired of the long drives just to find the same "deals" they can get on their phones.
The latest mall foot traffic news suggests that shoppers are becoming "convenience obsessed" but "connection starved." They’ll go to a mall if it offers something a screen can't—like a high-end meal or a place to actually talk to a human.
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What the Numbers Actually Say (No Fluff)
If you like hard data, the first half of 2025 was a wake-up call. Indoor mall visits were up 1.8%, but more importantly, visit length increased by over 3%. People aren't just popping in; they’re loitering. In a good way.
Gen Z is actually leading the charge here. It sounds fake, right? The "digital native" generation is supposedly obsessed with TikTok. But a Capital One Shopping study found that 73% of Gen Z visits a mall at least once a month. For them, it’s not about buying a candle at Bath & Body Works—though they do that too—it’s about socializing. It’s the "third place" that doesn't exist on Discord.
Why the "A-Malls" are winning:
- Luxury Resilience: High-income households are still spending.
- Dining Over Retail: Malls are becoming giant food halls with some stores attached.
- Adaptive Reuse: Seeing a pickleball court where a Lord & Taylor used to be is the new normal.
The Store Closure Paradox
Here is where it gets confusing. If malls are doing "well," why are we seeing headlines about 15,000 store closures?
Basically, retailers like Macy’s and Foot Locker are trimming the fat. Macy’s is in the middle of closing 150 underperforming stores to focus on their "Bold New Chapter" strategy. Foot Locker is ditching 400 mall locations. But—and this is a big "but"—they aren't leaving the world of physical retail. They’re just moving.
Bath & Body Works is the perfect example. They’ve been aggressively closing mall stores and opening "off-mall" locations in suburban strip centers. Why? Because you can park right in front of the door. It’s faster. Their former CFO Wendy Arlin noted they want to get to a 2/3 off-mall mix.
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So, while mall foot traffic news shows more people in the big "destination" malls, the smaller, aging malls are losing their "staple" stores to the shopping center down the street. It’s a migration, not an extinction.
2026 Trends: AI, Tariffs, and "Agentic" Shopping
Walking through a mall in 2026 feels a little different. Retailers are now using what the industry calls "Agentic AI" to handle inventory. Basically, the store knows what you want before you do because it’s tracking local search patterns and even the weather.
There’s also the "Tariff Factor." With 2026 seeing renewed volatility in trade policy, prices are jumping. Goldman Sachs estimates that about 55% of tariff costs are being passed directly to us, the consumers. This is driving a "trade down" culture.
- Discount Dominance: People are hitting the mall for the "experience" but doing their actual buying at Aldi, TJX, or Ross.
- BOPIS (Buy Online, Pick Up In Store): This is the glue holding malls together. You buy it on your couch, but you have to walk into the mall to get it. Once you’re in there, maybe you grab a Cinnabon. That’s the strategy.
Misconceptions You Should Stop Believing
People love to say that e-commerce killed the mall. It’s a half-truth. While online shopping is huge, it can't replicate the "dwell time" of a physical space. The real "mall killer" wasn't Amazon; it was over-saturation.
America simply built too many malls in the 80s and 90s. We had way more retail square footage per person than any other country. What we’re seeing now isn't a death; it’s a correction. The "bad" malls are being turned into apartments, medical clinics, or even distribution hubs for Amazon. The "good" malls are becoming mini-cities.
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Actionable Insights for 2026
If you’re an investor, a business owner, or just someone who likes shopping, here is how to navigate the current mall foot traffic news:
- Follow the "Grocery Anchor": Malls that are adding specialty grocers or high-end markets are seeing much more consistent daily traffic.
- Look for "Mixed Use": The safest malls are the ones where people also live or work. If there’s an apartment complex attached to the parking lot, that mall isn't going anywhere.
- Value the "Dwell": If a mall has a movie theater, a gym, and a library, it’s a community hub. Those are the ones surviving the "bifurcation."
- Watch the Youth: Keep an eye on where Gen Alpha (the kids after Gen Z) is hanging out. If they think a mall is "cringe," that's a 10-year death sentence for that property.
The "retail apocalypse" was a great headline, but it was too simple. The truth is that we’re just getting pickier about where we spend our time. We want "frictionless" for our errands and "immersive" for our Saturdays. The malls that figured that out are actually doing better than they have in a decade.
Next Steps for Staying Ahead
To stay updated on these shifts, you should monitor the quarterly earnings of major REITs (Real Estate Investment Trusts) like Simon Property Group, as their occupancy rates are the truest "canary in the coal mine" for the industry. Additionally, tracking the "off-mall" migration of brands like Nordstrom Rack and Bath & Body Works will show you exactly which suburban corridors are becoming the new retail hotspots.