PRESENTATION OUTLINE
Shopping Malls Are Not Dying
According to some recent press, stories have publicized that shopping malls are a dying breed. However, this simply isn’t true. When you look at the data and crunch the numbers, you’ll see that malls are actually on the rise. So if you’re debating the idea of opening a mall franchise with a brand like Pretzelmaker, try it out!
Topics of Discussion
- Distinguishing a "Dead" Mall
- Why Do Malls Die?
- Better Malls, Bigger Competition
- Mall Franchising is Still a Great Investment
1. It’s generally accepted that in order to be classified as “dead,” a mall must reach at least 40% vacancy in its available stores. While some major media outlets have touted that malls are dying, the truth is that only 3.4% of America’s malls have reached this “dead” status. This means that 96.6% of them are still alive and well!
2. While some “middle-ground” malls – specifically Class C and Class D malls – may experience some turbulent times, Class A and Class B malls are doing just fine. In fact, Class A malls, which are the “destination” malls that exist in major markets, are projected to continue performing quite well for the indefinite future. Class B malls, which serve their shoppers well in the given trade area, are projected to perform at a stable level as well.
3. Another source of hardship for some malls is competition. Simply put: it’s not because people don’t want to visit malls, it’s because a better mall opened down the street. Instead of losing mall traffic all together, smaller malls are losing traffic due to their spiffier younger cousin who just opened up. As a leg-up over lower-class malls, higher-end malls offer an overall shopping experience as opposed to cut-and-dry goods and services.
Research shows that when malls reach a dangerous economic state, the primary culprit is demographics – not supply and demand for the actual goods and products sold, nor the overall mall experience!
Disclaimer: This information is not intended as an offer to sell, or the solicitation of an offer to buy, a franchise. It is for information purposes only. Currently, the following states regulate the offer and sale of franchises: California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Oregon, Rhode Island, South Dakota, Virginia, Washington, and Wisconsin. If you are a resident of or want to locate a franchise in one of these states, we will not offer you a franchise unless and until we have complied with applicable pre-sale registration and disclosure requirements in your state. Franchise offerings are made by Franchise Disclosure Document only.
