Bath & Body Works, Foot Locker are among retailers ditching malls for strip centers, other shopping outlets
3 min
National chains are accelerating their exit from malls for other types of retail locations, signalling more trouble for malls as consumers show a growing preference for shorter, more convenient shopping experiences.
Jewellers, shoe stores and other specialty retailers are among the operators making the shift, indicating they will continue opening at outdoor, non-mall locations such as grocery-anchored shopping centres and strip malls after finding that they perform better and typically save on costs.
“These retailers are going to grow more confident that they’re barking up the right tree as they continue to see quarter after quarter after quarter of outperformance in their off-mall locations,” said Brandon Svec, national director of U.S. retail analytics for data firm CoStar Group.
Bath & Body Works, which for years sold scented soaps and body creams to mall goers, is on track to open about 95 new locations for the fiscal year ending in February, while closing about 50, primarily in struggling malls. More than half of its 1,840 stores in the U.S. and Canada are now located outside of enclosed shopping centres.
Foot Locker said it is aiming to operate half of its North American square footage outside enclosed shopping centres by 2026, up from 36% in the third quarter.
Signet Jewelers, which owns brands such as Kay Jewelers, Zales and Jared, is closing up to 150 locations in the U.S. and U.K. by mid-2024, nearly all in traditional malls. Company executives told investors last year that off-mall locations had stronger sales margins, and about 60% of its total square footage is now outside malls.
Not all retailers are exiting from malls. Publicly traded mall owners Simon Property Group and Macerich, which primarily own higher-end centres, have reported record-high leasing volume over the past year as retailers such as Hermès, Warby Parker and Alo Yoga have taken space.
But foot traffic to U.S. malls was down 4% on average in 2023 from the prior year, and about 12% lower than 2019 levels, according to real-estate data firm Green Street.
Low-end malls have seen the biggest drops in customer visits, partially because department stores have closed in higher numbers at these properties since 2017.
Online-sales data have also helped retailers pinpoint locations for successful stores with better accuracy than in the past.
“You know where your customer is buying and where they live,” said Scott Lipesky, chief financial and operating officer for Abercrombie & Fitch. “We’re looking at this digital shipping data, and we just plop a store down in the middle of it.”
Recently, Abercrombie & Fitch has been opening in city shopping districts in an effort to get closer to younger millennials and recent college graduates.
Visits to outdoor shopping centres have increased since the pandemic as the rise in remote work has given people the time and flexibility to run errands more frequently and closer to home.
Outdoor shopping and strip centres also appeal to retailers who are increasingly allowing customers to pick up or return items bought online, CoStar’s Svec said. These shoppers want to get in and out of stores quickly, and not spend time navigating large parking garages or walking across the mall.
Increasing demand for open-air space has driven up shopping-centre rents to nearly $24 a square foot, the highest level since real-estate firm Cushman & Wakefield began tracking the metric in 2007.
But moving out of malls can still help retailers cut costs, particularly the common-area and maintenance charges that landlords pass on to tenants to help pay for the property’s upkeep.
Owners of enclosed malls are saddled with a host of additional expenses compared with open-air shopping centres, such as keeping the indoor walkways clean, repairing the heating and ventilation systems and maintaining the restrooms.
“It’s a lot more than blowing leaves out of a parking lot,” said Jim Taylor, chief executive of Brixmor Property Group, a real-estate investment trust that owns about 365 shopping centres across the U.S.
Taylor said he started to notice traditional-mall tenants moving into Brixmor centres several years ago. More recently, he has seen an increase in the types of retailers making the move, including those in the beauty, footwear, jewellery and housewares business.
“We’re seeing them come into the open-air centres because of the proximity and convenience to the customer,” he said.
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Three completed developments bring a quieter, more thoughtful style of luxury living to Mosman, Neutral Bay and Crows Nest.
From the shacks of yesterday to the sculptural sanctuaries of today, Australia’s coastal architecture has matured into a global benchmark for design.
Three completed developments bring a quieter, more thoughtful style of luxury living to Mosman, Neutral Bay and Crows Nest.
5 min
Luxury means different things to different people. On the Lower North Shore, it often means the everyday things are well considered and exceptionally executed.
House-like proportions. An abundance of natural light. Security and privacy. Materials crafted with care.
Homes built for the way people truly live, shaped by industry expert and Lower North Shore local resident at the helm, Justin Brown, whose attention to detail is constant and uncompromising.
This is the space Abadeen has occupied for more than 25 years.
The developer has delivered premium residential, commercial and mixed-use projects across Australia, but the Lower North Shore has become the clearest expression of its philosophy.
A recent example is Cremorne Point Estate, completed in 2020.
Its craftsmanship is so enduring that the penthouse is now reselling for almost twice its original price in only four years. Smaller buildings. Real liveability. Design that retains its elegance over time.
Abadeen’s current portfolio also includes The Villas, Mosman Residences, Park Residences, Northcote Collective and the newly announced Burran Residences in Balmoral. But three completed buildings now take centre stage: The Hampden in Mosman, ENSO in Neutral Bay and KOYO in Crows Nest.
All are complete, move-in ready, and only a limited number of residences remain. At The Hampden, only one whole-floor residence remains available.
Meticulously crafted by acclaimed Mathieson Architects and delivered by Abadeen, The Hampden offers a rare level of refinement within an exclusive collection of only three residences.
The final available home is a brand-new, whole-floor residence capturing sweeping Middle Harbour views over Chinamans and Clontarf Beaches from a prized northerly aspect. It delivers a house-like ambience with floor-to-ceiling glass that draws in natural light, paired with exquisite finishes in natural stone and warm timber.
Expansive open plan living and dining areas are anchored by a premium fireplace and flow out to a generous north-facing entertainers’ terrace overlooking boat-studded waters. The high-spec kitchen includes a full butler’s pantry, WOLF appliances, an integrated Sub-Zero fridge and freezer, a wine fridge and a Taj Mahal Quartzite island.
With only nine residences, ENSO is a boutique collection where Koichi Takada’s architecture focuses on calm, contemporary living.
Natural stone, timber and soft curves create a sense of warmth, while generous glazing and landscaped outlooks bring light and greenery into the heart of each home. Rooms are designed for real daily use, with integrated joinery, considered storage and floor plans that prioritise ease and comfort. The result is a series of homes that feel composed, tactile and effortless to live in every day.
Designed by Koichi Takada, KOYO is a boutique collection of 27 residences shaped by natural textures, soft curves and a refined sense of luxury.
Its low-rise form sits within a leafy cul-de-sac, offering privacy only moments from Crows Nest village and the new Victoria Cross Metro station.
Inside, every space is crafted for daily ease. Timber, stone and sculptural details create a warm, tactile palette, while full-height glazing draws light into the heart of each home.
Integrated joinery, intuitive circulation and thoughtful storage keep rooms open, calm and effortless to live in.
KOYO reflects Abadeen’s approach to modern living: refined, confident and beautifully functional. KOYO is modern, confident and created for daily life without unnecessary embellishment.
Abadeen’s philosophy is shaped by Executive Chairman & Founder Justin Brown, whose three decades in the industry have defined a distinct approach to residential development on the Lower North Shore and beyond.
Justin believes luxury should feel effortless. A home should work beautifully every day, with planning that makes sense, materials that age gracefully and detailing that supports calm, comfortable living long after the first inspection.
This philosophy is embedded early in the design process. Acoustic comfort, natural shading, solar orientation and circulation are resolved from the outset.
Landscapes are designed to welcome residents rather than simply frame buildings. Interiors prioritise clarity and ease, with joinery, storage and spatial proportions refined to deliver homes that feel composed, tactile and intuitive to live in.
Justin’s values-led approach unifies Abadeen’s Lower North Shore projects. Each reflects the same commitment to certainty, longevity and quiet architectural excellence. These are homes built to be lived in, not performed, shaped around the daily rituals, warmth and comfort that define enduring residential design.
This part of Sydney reflects Abadeen’s values. Established neighbourhoods. Walkable villages. Tree-lined streets. Natural light and natural rhythm. It is a quieter style of luxury that holds its value and relevance over time.
Abadeen is a leading Australian property developer with premium residential and mixed-use projects across NSW, VIC, QLD and WA. Limited residences remain at The Hampden in Mosman, ENSO in Neutral Bay and KOYO in Crows Nest. Private appointments and viewings are now available. Call Jay Carter on 0417 248 117.
