This article will look at the 16 most profitable malls in the world. It will also cover the latest trends observed in the world of shopping malls while highlighting the changes the pandemic has brought to the functioning of malls today. If you want to skip our detailed analysis, you can head straight to the 5 Most Profitable Malls in the World.
During the height of the pandemic in April 2020, mall visits dropped by a staggering 91%. This decline was even more significant than the impact of the Great Recession. However, shopping malls started experiencing a resurgence in 2021, particularly in major cities, as people sought opportunities to venture out after months of restrictions.
According to a study by INRIX, there was still demand for in-person retail experiences, and retailers are optimistic about the future. The recent surge in mall visits may have been driven by factors such as “revenge spending” and pent-up demand, indicating that people were not completely avoiding physical retail experiences.
However, the rise of e-commerce and online shopping posed challenges to brick-and-mortar retailers and malls even before the pandemic. Online platforms like Amazon.com Inc (NASDAQ:AMZN) gained popularity, diverting consumer spending away from traditional retailers. Shopping malls faced closures and declining foot traffic amid the pandemic like never before.
Despite the struggle, in 2022, there was a notably high resurgence in mall visits driven by people seeking a sense of normalcy after the pandemic. Yet, this is unlikely to be a long-term trend as online shopping offers convenience and competitive pricing. Traditional retailers and malls will face ongoing challenges in the coming years.
Interestingly, how profitable it is to own a shopping mall can be closely tied to the ongoing debate about the death or revival of malls in today’s age. This profitability hinges on three crucial factors: the property’s purchase price, management efficiency, and the shopping mall’s distinctive features. When these elements align as intended, investors can expect an annual return from 5% to 20%.
2023 Trends to Observe
Shopping malls are evolving into lifestyle centers offering shopping and entertainment, catering to post-pandemic consumers seeking retail experiences and leisure activities. Outlet malls are rebranding as destination shopping centers to attract digitally native brands and provide a comprehensive customer experience.
The Superette in Boston Seaport, launched recently, is one such example that offers a unique concept inspired by European-style settings. The center features a charming tree-lined courtyard where visitors can find a mix of digitally-native brands, such as Lunya and Framebridge, and local cafes, bars, and restaurants. The design aims to capture the attention of people passing by, encouraging them to explore the boutiques and retailers while going about their daily activities, whether working out or getting a manicure. By creating an inviting atmosphere, The Superette aimed to merge leisure and shopping seamlessly, providing a vibrant space where people can engage with various experiences and discover new brands.
Mall kiosks drive international expansion for retailers, allowing them to establish a presence in new markets. Moreover, pop-up stores have become a powerful tool for young retail brands, offering visibility and the flexibility of short-term leases to generate excitement and encourage repeat visits.
For example, EssilorLuxottica has launched its first Prada Eyewear pop-up store in collaboration with Gebr Heinemann and Unifree Duty-Free at Istanbul Airport. The pop-up store, which will run until July 16th, is inspired by Prada’s spring/summer 2023 campaign.
Furthermore, malls are embracing the digital age by exploring retail media, live streaming, and other digital shopping strategies to adapt to changing consumer behaviors and attract foot traffic. This indicates a shift towards a more dynamic and diverse mall landscape that seeks to meet the evolving demands of modern shoppers.
Majid Al Futtaim has announced the launch of the Mall of the Metaverse, Dubai’s first virtual mall, catering to customers seeking enhanced digital experiences across retail, entertainment, and leisure. The mall will feature well-known brands such as Carrefour, VOX Cinemas, and Samsung Store. This development highlights the increasing demand for digital experiences as Futtaim aims to leverage behavioral science and data to deliver what customers desire to improve their shopping experience.
While Iran mall is the biggest mall in the world, area wise at 21 million sqft, the Dubai Mall is considered to be world’s most popular shopping and entertainment destination, covering over 13 million sqft with 1,200 stores, including 70 high-fashion outlets and renowned brands from The Estée Lauder Companies Inc (NYSE:EL), Ralph Lauren Corp (NYSE:RL), and Tiffany and Co (NYSE:TIF). In the 2019 expansion, Dubai Mall Zabeel added 15,000 sqm of lifestyle space, new dining and retail options, and 3,000 parking spaces. On the other hand, the largest mall in the US is the Mall of America, with an area of 5.6 million sqft.
The New Era for Shopping Malls
According to a report by analytics firm Placer.ai, mall owners are adopting innovative strategies to reinvent themselves and attract visitors, resulting in increased foot traffic. The report analyzed nine US malls that introduced unique tenants and experiences, such as a casino, kids’ play spaces, improved food options, and an American Ninja Warrior Adventure Park. Each of these malls witnessed a rise in visitor numbers.
The reinvention of malls reflects a shift in their purpose, focusing on entertainment and enhanced dining experiences. Ethan Chernofsky, Vice President of Marketing at Placer.ai, stated that malls are undergoing a fundamental reimagining and transitioning from a retail-centric model to one that offers diverse entertainment options. This shift is driving positive impacts on mall businesses.
For instance, the MainPlace Mall in Santa Ana, California, experienced an 18% increase in monthly visitors compared to the pre-pandemic period after opening the American Ninja Warrior Adventure Park. Similarly, the York Galleria Mall in Pennsylvania saw a 31.4% spike in visits after introducing the Hollywood Casino.
The report indicated that foot traffic at Westfield Valley Fair increased by more than 20% compared to pre-pandemic levels during Eataly’s opening week. Similarly, 99 Ranch Market’s presence turned Westfield Oakridge Mall into a popular one-stop shopping destination, leading to a 10% rise in visits.
Including entertainment-focused spaces like Surge Entertainment at Pierre Bossier Mall in Louisiana led to longer waiting times for visitors, with median waiting times consistently exceeding 75 minutes.
Pixabay/Public Domain
Methodology
We have determined the ranking of the most profitable malls in the world by their sales per square foot, a standardized measure of profitability. Data for most shopping centers were collected from reputable sources such as Yahoo Finance. However, the Sawgrass Mills Mall and Yorkdale information was obtained from news articles published by the Miami Herald and Oxford Properties, respectively. By calculating the sales per square foot metric, the malls have been arranged in ascending order of high sales per square foot to determine their relative profitability.
Here is a list of the 16 Most Profitable Malls in the World:
16. Westfield Garden State Plaza
Sales per Square Foot: $950
Westfield Garden State Plaza is an expansive shopping center in Paramus, New Jersey. Spanning over 2 million square feet, it houses more than 300 stores and a range of shopping options. There’s something for everyone, from luxury brands like the LVMH Moët Hennessy Louis Vuitton SE (OTC:LVMUY), to popular fashion retailers like H&M and Adidas AG (OTC:ADDYY) and specialty stores.
As one of the largest malls in the US, the plaza also offers numerous dining choices, catering to various types of clientele. With its ideal location, Westfield Garden State Plaza continues to be a popular destination for those seeking a pleasing shopping experience.
15. The Americana at Brand
Sales per Square Foot: $1,100
The Americana at Brand one of the most profitable malls in the world. It is a vibrant shopping, dining, and entertainment destination in Glendale, California. It offers an incredible blend of upscale retail stores like Tiffany and Co (NYSE:TIF), delicious dining options, including the Bourbon Steak Los Angeles, and beautiful outdoor space. With its stunning architecture, lively atmosphere, and various events throughout the year, Americana at Brand provides a memorable experience for visitors seeking luxury, leisure, and entertainment.
14. Short Hills Mall
Sales per Square Foot: $1,110
Short Hills Mall, located in Short Hills, New Jersey, is a premier upscale shopping hub. It has a sophisticated ambiance and features a curated selection of luxury brands like Ralph Lauren Corp (NYSE:RL) and high-end retailers like Micheal Kors, now known as Capri Holdings Ltd (NYSE:CPRI). Shoppers can enjoy a world-class shopping experience while exploring fashion, accessories, beauty, and home decor. With its elegant atmosphere and variety of options, Short Hills Mall is a haven for discerning shoppers seeking luxury and style.
13. Sawgrass Mills Mall
Sales per Square Foot: $1,149
Sawgrass Mills Mall in Sunrise, Florida, is a massive shopping outlet mall that offers luxury brands and beauty stores that include high-end cosmetic brands like Estee Lauder Companies Inc (NYSE: EL). With over 2.3 million square feet of retail space, it features distinct sections like Fashion Avenue, Oasis, and the Colonnade Outlets, catering to different shopping preferences. While it can be busy during peak seasons, the mall provides ample parking, amenities, and services, including dining options and entertainment venues, making it a favorite destination for bargain hunters and fashion enthusiasts.
12. Chadstone Shopping Center
Sales per Square Foot: $1,157
In Melbourne, Australia, Chadstone is the largest shopping center in the Southern Hemisphere. It offers a variety of shopping, dining, and entertainment options spread across its expansive space. With over 500 stores, including luxury brands like Capri Holdings Ltd (NYSE:CPRI), fashion boutiques, and international retailers like Nike Inc (NYSE:NKE) and Adidas AG (OTC:ADDYY), Chadstone caters to a myriad of tastes, and preferences, making it one of the most valuable malls in the world.
11. Ala Moana Center
Sales per Square Foot: $1,200
Ala Moana Center in Honolulu, Hawaii, is one of the world’s largest open-air malls. With over 350 stores, it offers various brands, including flagship stores of luxury names like Capri Holdings Ltd(NYSE:CPRI) and LVMH Moët Hennessy Louis Vuitton SE (OTC:LVMUY). The center attracts locals and tourists with scenic views, extensive retail options, and various dining choices, such as Morton’s steak house and Moana Sushi. It is a vibrant shopping destination, showcasing many products and hosting cultural events yearly.
10. Mall of Millenia
Sales per Square Foot: $1,250
The Mall of Millenia is a premier shopping destination known for its upscale retailers like Nike Inc (NYSE:NKE) and Tiffany and Co (NYSE:TIF), luxurious ambiance, and extensive selection of fashion, beauty, and dining options. With its sophisticated architecture and high-end brands, it offers a truly indulgent shopping experience for selective and smart shopaholics.
9. CF Pacific Center
Sales per Square Foot: $1,255
CF Pacific Centre is a prominent shopping center in the heart of Vancouver, Canada. It offers an impressive collection of high-end brands, such as the Estee Lauder Companies Inc (NYSE: EL), varied retail options, and a central location, making it a preferred destination for shopping enthusiasts and visitors in the area.
8. The Grove
Sales per Square Foot:$1,400
The Grove is a bustling shopping and entertainment complex in Los Angeles, California. Known for its beautifully landscaped outdoor setting, it features a variety of high-end fashion stores, including LVMH Moët Hennessy Louis Vuitton SE (OTC:LVMUY). Beauty retailers like Estee Lauder Companies Inc (NYSE: EL), eateries, a movie theater, and live performances make it a favorite choice amongst locals and tourists.
7. Mall of Emirates
Sales per Square Foot: $1,423
Mall of the Emirates is an iconic shopping and entertainment destination in Dubai, United Arab Emirates. Its grand architecture houses an extraordinary array of luxury and global brands, including the Ralph Lauren Corp (NYSE:RL) and high-end retailers like Nike Inc (NYSE:NKE), providing an unparalleled shopping experience.
Beyond shopping, visitors can also enjoy thrilling activities inside its most popular indoor ski resort, entertainment options like the Dubai Community Theatre and Art Center and Magic Planet, with a remarkable selection of dining venues, making it a must-visit destination for both residents and travelers looking for quality time with excitement.
6. Westfield Sydney
Sales per Square Foot: $1,500
Westfield Sydney is a vibrant shopping destination in the heart of Sydney, Australia. Its modern design and prime location showcase a wide selection of fashion, lifestyle, and dining choices, including an exclusive store for Adidas AG (OTC:ADDYY). It is a bustling hub for retail therapy and culinary thrill in the lively city of Sydney and is one of the most profitable shopping malls in the world.
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Disclosure: None. 16 Most Profitable Malls in the World is originally published on Insider Monkey.