Nov. 28—The second half of 2021 has shown signs of rejuvenation at malls like Sooner Mall in Norman as COVID-19 cases are lower than they were previously and foot traffic and consumer spending increase, generating momentum for the brick-and-mortar center heading into 2022.
According to IBISWorld, the U.S. shopping mall management industry declined 4.4.% between 2016 and 2021. Coresight Research estimates 25% of the 1,000 malls left in the U.S. will close over the next three to five years.
While this may seem like a bleak forecast, slowed Q3 numbers from E-commerce's biggest player and an apparent resurgence of in-person shopping may be a light at the end of the tunnel for some retail centers like Sooner Mall.
Amazon reported mild third-quarter sales in October. Sales rose just 3% to $49.9 billion, a significant decrease from the 37% pace from the prior year.
This report comes as foot traffic in malls returns to pre-pandemic levels. Location analytics company Placer.ai reports malls are gaining some much-needed momentum.
The Placer.ai Mall Index shows mall visits increased 3.2% this October compared to the same month in 2019. Placer suggests the lack of a typical retail season in 2020 and ongoing supply chain issues are drivers for the uptick.
From September through October, Placer data shows weekly visitors increased at Sooner Mall by more than 14,000. More patronage combined with strong holiday spending predicted by the National Retail Federation would mean strong recovery into 2022.
The National Retail Federation predicts holiday sales in November and December will grow between 8.5%-10.5%, totaling between $843 billion and $859 billion in sales.
Black Friday at Sooner Mall
On Friday, available parking spaces were few and far between in the south parking lot of the 504,000-square-foot mall. Despite being down an anchor tenant after Sears closed in 2019, considerable foot traffic populated the east corridor of the mall and the surrounding stores.
A line stretched outside Bath & Body Works, as the body care and fragrance retailer only allowed 30 people inside at a time.
Sarah Michelle, co-owner of Infinity Love Jewelers inside the mall, said she has seen an increase in foot traffic since the summer. The store in November 2019 set up shop inside.
Michelle said 2020 overall showed little promise during what was an extremely slow year, but 2021 brings reason for optimism. The start of the holiday season has furthered that trend as the year comes to a close.
"There's a lot more traffic, and a lot more people coming out," Michelle said.