Why Macy’s And Other Brands Are Moving Into Strip Malls

U.S. adults make about 1.3 billion visits to shopping centers each month or about 62 trips per person annually, according to the International Council of Shopping Centers. While some outlets, like malls, have struggled to retain shoppers, foot traffic to strip malls is booming. Data compiled by analytics company RetailStat shows annual visits to strip malls surged 18% last year compared with prior to the pandemic. Convenient shopping options, hybrid work and millennials moving to fast-growing suburbs are driving that trend. "Lines are shorter because of smaller stores, parking is easier, they're usually on your way home from dropping your kid off at school or on your way home from work," said real estate attorney Jessica Vara of Hunton Andrews Kurth. And retailers are trying to get a slice of the action. Macy's announced last year it was opening 30 new small format stores in off-mall locations. The new stores, about a fifth the size of traditional stores, offer a slimmed-down selection, according to the retailer. But strip malls face criticism for being an eyesore to their communities, adding to environmental problems and contributing to the demise of traditional business districts. The U.S. has more than 68,000 strip malls from coast to coast, according to the International Council of Shopping Centers. So how did the U.S. become covered in strip centers, and could the format be the future of brick-and-mortar retail? Chapters: 0:00 - 1:46 Introduction 1:47 - 4:39 Chapter 1. Macy's exits the mall 4:40 - 7:33 Chapter 2. The king of retail real estate 7:34 - 10:04 Chapter 3. Investing in strip malls Produced by: Shawn Baldwin Edited by: Nora Rappaport Supervising Producer: Jeniece Pettitt Animation: Christina Locopo, Jason Reginato Additional Footage: Getty Images, Macy's » Subscribe to CNBC: https://cnb.cx/SubscribeCNBC » Subscribe to CNBC TV: https://cnb.cx/SubscribeCNBCtelevision About CNBC: From 'Wall Street' to 'Main Street' to award winning original documentaries and Reality TV series, CNBC has you covered. Experience special sneak peeks of your favorite shows, exclusive video and more. Want to be a successful, confident communicator? Take CNBC’s online course Become an Effective Communicator: Master Public Speaking. We’ll teach you how to speak clearly and confidently, calm your nerves, what to say and not say, and body language techniques to make a great first impression. Get started today: https://cnb.cx/4aryNgM Connect with CNBC News Online Get the latest news: https://www.cnbc.com/ Follow CNBC on LinkedIn: https://cnb.cx/LinkedInCNBC Follow CNBC News on Instagram: https://cnb.cx/InstagramCNBC Follow CNBC News on Facebook: https://cnb.cx/LikeCNBC Follow CNBC on Threads: https://cnb.cx/threads Follow CNBC News on X: https://cnb.cx/FollowCNBC Follow CNBC on WhatsApp: https://cnb.cx/WhatsAppCNBC #CNBC #Malls #retail #Stripmalls Why Macy’s And Other Brands Are Moving Into Strip Malls