Whenever you wanted a dress, shoes, bags, utensils, cleaning equipment, or beddings, a mall was the place to go because they had variety of things to choose from. They used to be very active, and you would spent up to hours on the line just to be served after picking something because they were crowded. These days though, they are half-empty or barely occupied and this has caused owners to close down some stores or renovate them to be more appealing to customers and embrace change. This happens because the older stores couldn’t keep up with new better ones, more people have started shopping online, there were too many stores hence supply exceeded demand, and lockdown rules.
Unlike in the olden days when an owner would buy land at an accessible spot and build something big but simple to house all the goods, investors today provide more services. When newer plazas open and they have a swimming pool, a spa, clinic and many other features, buyers might abandon the old simple structure for the better one. If the latter manages to keep up and renovate, they could get a few or most customers back, but if they cannot keep up, they may be forced into closure by big losses.
Because malls were earning well and numerous people frequented them, more investors embraced the idea and started theirs, causing excess supply. Moreover, the structures and goods or services provided were almost similar for all plazas, so buyers got could access everything they need from anywhere, lessening customers per mall. When you stock to the brim and customers keep decreasing, your earnings become too low to break-even, therefore forcing you to clear your stock at lower prices and close to not lose everything.
With online trade budding, people decide to order their goods online and happily pay the delivery fee because they can save the time and energy needed to access a mall. Most plazas are neither mobile nor do they deliver for customers, so a buyer orders what they need from online stores and doesn’t have to take time off to go to a mall. To keep up with the trend, some plazas also offer online purchases besides the physical ones, but those who cannot embrace that system must accept the few buyers they get daily, or close trade.
As if everything wasn’t going south for plaza owners lately, governments had to introduce curfews and lockdowns to control the Corona Virus. Although this is a temporary issue, there are other lockdown policies that affect malls, for example during elections, crises, civil wars, and other unrests, so owners incur losses. When it happens the first time and you recover, then it hits again a second and third time, an owner could decide to just sell off and invest in something else.
Plazas were loved, profitable, and promising, but nothing doesn’t change with the changes in tech, so owners could have to sell, release stock, or renovate the whole thing. It could be caused by new trends that you cannot keep up with because people are fast forgetting tradition, trading on websites, excessive supply, or government laws. Rather than holding onto it and losing the whole investment, it is better to sell of at whatever price you can get and invest in another business, just to keep up with the times.