Shopping online is a major factor in mall closings, but it is not the only or even always the primary cause. Studies show that while e‑commerce has steadily reduced mall revenue and foot traffic, competition from newer shopping centers, the collapse of anchor department stores, stagnant incomes, and changing social habits have often been equally or more decisive in individual closures.wsj+2
Direct competition with brick-and-mortar: E‑commerce has grown from about 16% of retail sales to an estimated 25% by 2026, with projections of tens of thousands of store closures tied to this shift. Many mall retailers—especially mid-tier apparel and department stores—have struggled because consumers can order from home, often with free shipping and returns.forbes+1
Anchor store failures: Large department stores such as Sears, J.C. Penney, and Macy’s have closed thousands of stores, partly due to online competition. When these anchors leave, malls lose a key draw, making the whole property less viable.econreview.studentorg.berkeley+1
Consumer behavior change: Online shopping has “doubled in the past seven years,” and teenagers who used to hang out at malls now socialize online, reducing the mall’s role as a social hub. This cultural shift is amplified by e‑commerce but also by social media and digital communication.pbs
However,-http studies specifically on mall deaths find that competition from newer, better-designed shopping centers was the most common cause of closure over the past decade, even as internet retailing eroded mall revenue. In other words, many malls died because they were outdated and could not compete with newer malls or open-air lifestyle centers, not solely because of online shopping.wsj
Stagnant household incomes: Middle- and low-income households, which form a large share of mall shoppers, have seen income stagnation or decline, limiting their ability to spend at malls.pbs
Format shift to open-air centers: Many consumers prefer “lifestyle centers” and big-box strips with restaurants, services, and easier parking over enclosed malls. This is a physical-location competition issue, not purely an online one.wsj
Pandemic effects: The COVID-19 pandemic accelerated closures and reduced traffic, compounding the long-term effects of e‑commerce.digitalcommons.lindenwood
Digitally native brands: Brands that originated online and never built large mall footprints have captured market share, reducing demand for traditional mall-based retailers.digitalcommons.lindenwood
Online shopping is a significant and growing driver of mall decline, especially through:
Direct sales competition with mall retailers.
Pressure on anchor department stores, which destabilize entire malls.
Shifting consumer habits away from physical shopping as a social activity.
But it is not solely responsible. Many mall closings are equally or more attributable to:
Competition from newer, better-designed shopping venues.
Loss of anchor tenants.
Economic and demographic pressures.
The broader shift to open-air retail formats.
Estimates suggest that around 30% of U.S. malls have faced or could face closure in given years, with “C- and D-rated” malls most vulnerable, while higher-quality A and B malls remain more insulated. The death of these lower-tier malls is a combined outcome of e‑commerce, outdated formats, and weaker anchor performance, not just online shopping alone.econreview.studentorg.berkeley+1