10 Major Trends Shaping the Future of Retail Malls in 2025
The future of retail malls is undergoing a seismic shift as they adapt to a rapidly changing retail landscape in 2025. From the rise of e-commerce to evolving consumer expectations, traditional shopping centers are reimagining their role.
Facing challenges such as malls closing and declining department stores, the industry is responding with innovative solutions like mixed-use developments, experiential retail, and advanced technologies. Malls are transforming into dynamic spaces that cater to retail, entertainment, and community needs.
This article explores 10 major trends and developments defining the future of retail malls in 2025, highlighting key strategies that are shaping their survival and evolution.
1. Experiential Retail Shaping the Future of Retail Malls
The future of retail malls is centered around experiences rather than traditional shopping. As consumers increasingly prioritize entertainment and interaction, malls are evolving into experience-driven destinations. Examples include immersive pop-ups, virtual reality attractions, and entertainment complexes.
Netflix House, launching in 2025, is a prime case where former department store spaces are transformed into experiential venues inspired by hit Netflix series. These attractions increase foot traffic and customer dwell times, helping combat e-commerce competition.
2. Rise of Mixed-Use Developments
To remain viable, retail malls are being converted into mixed-use developments featuring retail, residential, and entertainment spaces. By diversifying their purpose, malls attract visitors for work, leisure, and living, enhancing their long-term value.
The redevelopment of Lakeside Mall into Lakeside Town Center—a $1 billion project featuring homes, offices, and retail—is a prime example of this shift. Mixed-use spaces redefine the future of retail malls as integrated community hubs.
3. Sustainability and the Circular Economy
With growing environmental awareness, retail malls are integrating sustainable practices. Concepts like energy-efficient infrastructure, resale platforms, and circular economy initiatives are becoming increasingly popular.
Brands such as Vinted promote second-hand luxury shopping within malls, while developers focus on energy-saving solutions like LED lighting and solar panels. Sustainability is not only a necessity but also a strategy to attract environmentally conscious consumers.
4. Incorporation of Specialty Grocery Stores
To boost daily foot traffic, retail malls are increasingly housing specialty and international grocery stores. These stores cater to niche markets and offer unique experiences, making malls one-stop destinations for both retail and essentials.
Tokyo Central, a Japanese specialty grocer in California malls, highlights how malls can benefit from the grocery sector’s popularity. Filling vacancies left by closures, these grocers revitalize mall spaces and draw diverse audiences.
5. Traditional Department Stores Decling in Retail Malls
Department stores continue to decline due to changing consumer behaviors and online shopping trends. Major chains are closing multiple locations, leaving large spaces vacant.
However, malls are repurposing these anchor spaces into gyms, entertainment venues, and coworking hubs. By adapting to these shifts, malls are mitigating the impact of department store closures while aligning with modern needs.
6. Adoption of Advanced Retail Technologies
Malls are adopting technologies like artificial intelligence (AI), Internet of Things (IoT), and digital signage to enhance customer experiences and streamline operations. AI-driven tools offer personalized recommendations, while IoT optimizes mall energy efficiency.
Retail technologies also power omnichannel retailing strategies, such as buy-online-pickup-in-store (BOPIS), allowing physical stores to support online shopping trends.
7. Expansion of Luxury Outlet Segments
Luxury outlets are redefining the future of retail malls by offering discounted high-end products that appeal to value-conscious consumers.
Luxury brands leverage outlet spaces to reach broader audiences while maintaining exclusivity. This segment helps malls differentiate themselves from e-commerce competitors by offering tangible aspirational shopping experiences.
8. Omnichannel Retailing Blends Physical and Digital in Malls
Seamless integration of online and offline shopping, known as omnichannel retailing, is becoming a core strategy. Features like BOPIS and curbside pickups allow malls to function as fulfillment hubs for online orders.
Retailers are enhancing physical stores with digital experiences, including AI-powered fitting rooms and interactive kiosks. Omnichannel strategies are critical for the future of retail malls as they align with modern shopping habits.
9. Store Closures and Consolidation
Widespread store closures are impacting malls, with analysts predicting up to 45,000 closures in the coming years. Economic pressures and e-commerce growth are driving consolidation, forcing malls to rethink leasing strategies.
Malls closing traditional stores are repurposing spaces for healthcare clinics, fitness centers, and educational facilities. Consolidation allows malls to focus on high-performing tenants and alternative uses, ensuring their continued relevance.
10. Retail Malls Transform into Community Lifestyle Hubs
The future of retail malls involves becoming integral parts of daily life. By incorporating lifestyle amenities like fitness centers, medical clinics, coworking spaces, and public parks, malls are evolving into multi-functional hubs.
Lakeforest Mall’s redevelopment into a mixed-use community with homes, offices, and public boardwalks highlights this transformation. They are no longer just shopping centers but spaces for work, leisure, and community engagement.
Retail malls in 2025 are at a critical turning point, evolving far beyond traditional shopping spaces. By embracing experiential retail, sustainability, and mixed-use models, malls are finding new ways to stay relevant in an increasingly digital world.