It’s no secret that this is not the best of times for retailers. Whether you run a company selling children’s clothing, shoes, home goods or, well, just about anything else these days, even the most well-known stores have been closing their doors.
Mall retailers, especially those in indoor malls, have seen a steady decline in foot traffic in recent years. The drop-off started way back in the late 1990s and early 2000s, but the pandemic really sped up the decline.
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Nationwide lockdowns meant people were not out and about. Without customers perusing and purchasing merchandise, profits went down, yet many expenses, like rent, and the cost of goods and labor, continued to climb.
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Running brick-and-mortar outlets is expensive. On top of that, our shopping habits have shifted online, and physical malls are not the places to see and be seen they used to be.
While foot traffic has been slow to return to malls, there are some signs of life.
Malls are no longer ‘one-stop shops’ but are showing signs of life
Comparing Q1 visits to malls in 2021, 2022, 2023, and 2024 to Q1 2019 shows a trajectory of recovery, according to data from retail analytics firm Placer.ai.
Foot traffic has not yet returned to 2019 levels, but the gap is getting smaller each year. Retail has not yet fully settled into a “new normal” and the post-Covid recovery story is still being written, the firm says.
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Placer.ai analyzes a variety of data, including looking at when visitor go into malls, which is how the firm determined that between Q1 2019 and Q1 2024, the number of shoppers coming to a mall directly from home or returning home directly following the mall visit decreased.
The data suggests that more people visit a mall as part of an outing that includes multiple stops — e.g., a restaurant, a grocery store, or perhaps a wellness center.
Nordstrom is defying the odds and opening new stores.
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Nordstrom new locations revealed
Some retailers are adapting to this new consumer behavior. Take Nordstrom, which seems to be doing pretty well, all things considered. The iconic retailer is known for its impeccable curation of fashion and home goods, its unrivaled customer service, and its willingness to experiment.
For example, as a way to capture customers during one of those multiple-stop outings, Nordstrom just opened a Botox and medspa outlet within a New York City store. A second location will open in a Chicago suburb later this year.
Nordstrom is also trying on concepts, including a “Catherine Bloom for Nordstrom” store-within-a-store in Los Angeles. The spot is named for the A-list celebrity stylist who has a national reputation as a luxury personal stylist. She was at rival Neiman Marcus before teaming up with Nordstrom.
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Bloom is reportedly so well-known among Hollywood stars, C-suite executives, and the social elite that she’s often referred to by just her first name. And now Nordstrom gets to claim her as the company’s first “director of luxury styling.” The store will be on trendy Melrose Avenue in Los Angeles.
Nordstrom is committed to creating personalized experiences that you can’t get online, Founder and CEO Jeanel Alvarado of RetailBoss recently told Fortune. The Catherine Bloom concept is just one of Nordstrom’s openings planned for this year.
Examples of others opening in fall 2025, per the company’s website, include:
Coral Springs, FL, Pine Ridge Square Surprise, AZ, Prasada NorthHolbrook, NY, The Shops at SunVetHyannis, MA, The Landing at HyannisProsper, TX, The Gates of ProsperMelbourne, FL, The Avenue VieraMeridian, ID, The Village at MeridianLakeland, FL, Lakeside VillageLubbock, TX, West End CenterEstero, FL, Coconut PointLake Grove, NY, Smith Haven PlazaLongmont, CO, Harvest Junction
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