Chapter 1: The Retail Apocalypse and Its Consequences

Recent reports from UBS Group indicate that approximately 80,000 retail outlets in the U.S. are projected to shut down by 2026, marking what many refer to as a “retail apocalypse.” This accounts for nearly 9% of the remaining department stores, which have already faced significant foot traffic declines and a prolonged economic downturn. Globally, the trend is similar, with store closures rising dramatically from 18% to over 27% in a short period, primarily driven by social distancing measures and waning interest in public gatherings, a trend that accelerated during the Covid-19 pandemic.

Experts predict that the surge in e-commerce will continue to fuel these closures, with major retailers experiencing over a 50% rise in online sales. Coresight Research estimates that about 25% of currently operational stores will cease to exist in the next three to five years. While some media outlets express skepticism about these predictions, they acknowledge that roughly 250 malls may transition into mixed-use spaces catering to shopping, entertainment, and wellness.

Since July 2021, Cushman & Wakefield has reported that over 700 anchor stores have vacated malls across the country. Although some stores have closed permanently, retailers like Macy’s have altered their strategies, opting to relocate to areas outside traditional malls to boost sales.

In 2019, the U.S. recorded over 9,800 retail bankruptcies, followed by more than 8,700 store closures in 2020, excluding numerous local businesses that have been integral to their communities. Interestingly, 2021 has shown signs of stabilization, as businesses adapt and some expand, largely due to technological advancements that have transformed existing models to attract consumers who prefer shopping from home.

Curbside pickups and home deliveries have enabled stores like Walmart and Target to thrive, while companies such as Dick's Sporting Goods and Family Dollar have also expanded despite economic uncertainties. Factors such as stimulus checks, hiring bonuses, and increased wages have contributed to this positive shift.

Moreover, there’s an unspoken narrative emerging from these statistics: people are growing weary of staying indoors. The desire for social interaction and a break from screens is palpable, leading consumers to prioritize in-person experiences over mere convenience.

Chapter 2: The Rise of Experiential Retail

As malls evolve, they are set to become pivotal centers for experiences and entertainment. Across North America, communities lament the lack of engaging activities for children and families. The nostalgia for past family outings highlights a concerning trend: a diminishing number of enjoyable venues, coupled with an increase in crime where youth lack constructive outlets.

The question arises: where have all the arcades, bowling alleys, and movie theaters gone? Many areas now feature neglected playgrounds that are avoided due to safety concerns.

According to The Business Journals, “experiential retail” could soon encompass diverse venues such as cinemas, bowling alleys, trampoline parks, and dining establishments. Although the pandemic has taken its toll on such businesses, reluctance towards experiential retail is beginning to fade.

Places like Allied E-Sports and Dave & Buster’s are drawing crowds back to malls. E-sports arenas provide a social atmosphere for digital experiences, while escape rooms foster teamwork, allowing patrons to disconnect from screens and engage in hands-on activities.

The Simon Property Group has recently partnered with Amazon, transforming defunct mall spaces into fulfillment and distribution centers. This collaboration aims to reignite consumer demand for immediate gratification through same-day delivery options.

While these partnerships may not completely restore malls to their former glory, they hold the potential for revitalization. The ability to attract customers hinges on repurposing vacant spaces and delivering a customized shopping experience that encourages families to linger and invest in valuable purchases.

Chapter 3: Malls in the Age of Digital Innovation

Recently, Telefonaktiebolaget LM Ericsson released its "10 Hot Consumer Trends 2030" report, highlighting the potential for shopping malls to integrate digital technologies, creating hybrid consumer experiences. Despite a general sentiment of digital fatigue, Ericsson suggests that innovative approaches could re-engage shoppers.

With the rise of the metaverse, as popularized by Facebook’s rebranding to Meta, Ericsson envisions an environment where limitless in-person activities can be programmed and adapted. Major tech players are exploring initiatives to merge physical and virtual interactions, as seen in Disney's integration of video capture points for enhanced visitor experiences.

Kalahari Resorts is pioneering the integration of digital experiences into real-world settings. For instance, they introduced waterproof VR goggles at their water park, allowing guests to embark on thrilling virtual adventures.

The success of these initiatives has led Kalahari to expand its offerings with VR rooms and 7-D theaters across its locations. Walmart is also strategizing its entry into the metaverse, while Cedar Fair Entertainment plans to incorporate e-sports arenas.

Ultimately, the development of location-based technologies that blend intelligence and creativity is set to redefine commerce, customer engagement, and entertainment, potentially transforming shopping experiences by 2030.

Chapter 4: The Future of Electric Vehicle Charging

In August, Pew Research released insights about U.S. living arrangements prior to the pandemic, revealing that 36% of the country’s households were renters. This demographic is critical as the nation moves towards electric vehicles (EVs) and the infrastructure needed to support them.

The UK is set to mandate electric car chargers in all new homes and buildings by 2030, and as the U.S. ramps up its electric vehicle initiatives, the demand for charging stations will soar. However, many existing charging stations face significant challenges, including inefficiencies and safety concerns.

Current EV charging solutions often fail to accommodate user needs, leading to frustration. Properties that understand the importance of consumer convenience can capitalize on the transition to electric vehicles.

Non-parasitic electric vehicle (NPEV) chargers present a promising alternative. These hydrogen-powered solutions are versatile, easy to install, and do not require significant infrastructure investments. Unlike traditional chargers, they are universally compatible and eco-friendly, producing zero emissions.

As more individuals adopt electric vehicles, businesses offering NPEVs will have a competitive edge, particularly if they provide entertainment options and conducive environments for socializing.

Conclusion: The Path Forward for Retail

While the future of malls and shopping centers remains uncertain in the wake of Covid-19 variants, the integration of innovative technologies and experiential offerings can potentially rejuvenate foot traffic. As consumers seek engaging experiences, the evolution of retail will hinge on how effectively businesses adapt to meet these emerging demands.

In summary, the convergence of technology and consumer preferences may pave the way for a new era in retail, where shopping becomes an adventure rather than a chore.

This article is intended for informational purposes only. The author holds shares in some companies mentioned and encourages readers to conduct their own research before making any investment decisions.